HF 2654 (LSB 5824HZ (2) 90)

HOUSE FILE 2654

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 2566)
(SUCCESSOR TO HSB 685)

A BILL FOR

An Act relating to tax collections for buildings or improvements erected or made by a person on land owned by another person.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 445.32, Code 2024, is amended to read as follows:
   445.32  Liens on buildings or improvements.
   1.  If a building or improvement is erected or made by a person other than the owner of the land on which the building or improvement is located, as provided for in section 428.4, and the actual value of the building or improvement is less than twenty thousand dollars, the building is not a residential building, or the improvement is not a residential improvement, the taxes on the building or improvement are and remain a lien on the building or improvement from the date of levy until paid. If the taxes on the building or improvement become delinquent, as provided in section 445.37, the county treasurer shall collect the tax as provided in sections 445.3 and 445.4. This section subsection does not apply to special assessments, or rates or charges.
   2.  If a building or improvement is erected or made by a person other than the owner of the land on which the building or improvement is located, as provided for in section 428.4, the actual value of the building or improvement is twenty thousand dollars or more, and the building is a residential building or the improvement is an improvement to a residential building, the taxes on the building or improvement are and remain a lien on the building or improvement from the date of levy until paid. If the taxes on the building or improvement become delinquent, as provided in section 445.37, the county treasurer shall collect the tax as provided in sections 445.3 and 445.4 or pursuant to chapter 446.
   3.  If a county treasurer commences tax collection procedures under this section for delinquent taxes on a building or improvement, the county treasurer shall send notice to the owner of the land on which the building or improvement is collected in the form prescribed by section 446.9, subsection 1.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   When property adjacent to a public improvement benefits from the improvement, a special assessment may be levied against the adjacent properties that received the benefit to pay for all or a portion of the improvement. Under current law, principal and interest due and delinquent because of a special assessment cannot be collected on a building or improvement erected or made by a person on land owned by another person pursuant to Code sections 445.3 and 445.4. This bill allows collections pursuant to Code sections 445.3 and 445.4 or Code chapter 446 (tax sales) relating to residential buildings or improvements on residential buildings, with an actual value of $20,000 or more, erected or made by a person on land owned by another person to include principal and interest due and delinquent because of special assessment levies.
   The bill requires a county treasurer to provide notice to the owner of leased land on which a building or improvement is erected prior to commencing tax collection procedures for delinquent taxes on the building or improvement.