Senate Study Bill 1155 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON DAWSON)
A BILL FOR
1 An Act relating to the minimum percentage of a parcel
2 designated by a purchaser at tax sale and including
3 applicability provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1634XC (2) 90
md/jh
 S.F. _____
1 Section 1. Section 446.16, subsection 1, Code 2023, is
2 amended to read as follows:
3 1. The person who offers to pay the total amount due, which
4 is a lien on any parcel, for the smallest percentage of the
5 parcel is the purchaser, and when the purchaser designates the
6 percentage of any parcel for which the purchaser will pay the
7 total amount due, the percentage thus designated shall give the
8 person an undivided interest upon the issuance of a treasurer’s
9 deed, as provided in chapter 448. If two or more persons have
10 placed an equal bid and the bids are the smallest percentage
11 offered, the county treasurer shall use a random selection
12 process to select the bidder to whom a certificate of purchase
13 will be issued. The percentage that may be designated by any
14 purchaser under this subsection shall not be less than one
15 fifty-one percent.
16 Sec. 2. APPLICABILITY. This Act applies July 1, 2023, for
17 tax sales held on or after that date.
18 EXPLANATION
19 The inclusion of this explanation does not constitute agreement with
20 the explanation’s substance by the members of the general assembly.
21 At the annual tax sale held by the county treasurer under
22 Code chapter 446, parcels on which taxes are delinquent are
23 offered at public sale, unless the parcel is subject to a
24 pending action. The person who offers to pay the total amount
25 due for the smallest percentage of the parcel is the purchaser.
26 If two or more persons have placed an equal bid and the bids
27 are the smallest percentage offered, the county treasurer shall
28 use a random selection process to select the bidder to whom a
29 certificate of purchase will be issued. The percentage that
30 may be designated by any purchaser under current law shall not
31 be less than 1 percent. This bill changes that percentage to
32 51 percent.
33 The bill applies to tax sales held on or after July 1, 2023.
LSB 1634XC (2) 90
-1- md/jh 1/1