SF 28 (LSB 1224XS (3) 91)

SENATE FILE 28

BY  McCLINTOCK

A BILL FOR

An Act relating to cities or counties canceling the sale of property containing abandoned buildings to a tax sale certificate holder.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 448.13, Code 2025, is amended to read as follows:
   448.13  Cancellation of tax sale and certificate of purchase —— refund of purchase money.
   If the county treasurer receives a verified statement from a city or county stating that a parcel sold at tax sale contains a building that is abandoned, as those terms are defined in section 657A.1, prior to redemption of the parcel under chapter 447 or the issuance of a tax deed for the parcel, and the verified statement is accompanied by a petition filed by the city or county under section 657A.10B for title to the parcel, the county treasurer shall make an entry in the county system canceling the sale of the parcel and shall refund the purchase money to the tax sale certificate holder as provided under section 657.10B.
    Sec. 2.  Section 657A.10B, subsection 7, Code 2025, is amended to read as follows:
   7.  If a city or county files a petition under subsection 2, naming the holder of a tax sale certificate of purchase for the property as a respondent, the city or county shall also file the petition, along with a verified statement declaring that the property identified in the petition contains an abandoned building, with the county treasurer. Upon receiving the petition and verified statement, the county treasurer shall make an entry in the county system canceling the sale of the property and shall refund the purchase money to the tax sale certificate holder, including interest of two percent per month, counting each fraction of a month as an entire month, on the sum of the purchase money and any amounts added to the amount due under section 447.1, calculated from the date of purchase of the property by the holder until the date the purchase money, any added amounts, and the interest calculated pursuant to this subsection are refunded.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to cities or counties canceling the sale of property containing abandoned buildings to a tax sale certificate holder.
   Currently, if a city or county files a petition against the holder of a tax sale certificate, and the tax certificate holder’s property is verified to contain an abandoned building, the county treasurer is required to cancel the sale of the property and is required to refund the purchase money to the tax sale certificate holder. If the sale of such a property is canceled, the bill requires the city or county to refund the purchase money plus interest of 2 percent per month on the sum of the purchase money and any amounts added to the amount due under Code section 447.1.