Iowa Senate Bill SF2124

Iowa 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/25/24

Caption

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.

Impact

With the new provisions under SF2124, any building or improvement with an actual value of $5,000 or more that is erected by someone other than the landowner will have its tax delinquency handled more comprehensively. This change will allow county treasurers to collect the principal and interest due on delinquent special assessments along with regular taxes. This aims to simplify and ensure efficient collection procedures, potentially increasing local government revenues by enabling them to recoup costs associated with public improvements benefitting private properties.

Summary

Senate File 2124, introduced by Rowley, addresses tax collections specifically for buildings or improvements made by individuals on land they do not own. The bill proposes amendments to current laws surrounding tax liens on such structures, notably changing the handling of delinquent tax collections related to these properties. The bill lays out clear guidelines on how properties valued at $5,000 or more will be subject to lien collections not just for regular taxes, but also for special assessments, clarifying the responsibilities of property owners and the criteria for tax delinquencies.

Contention

Notable points of contention regarding SF2124 may arise around its impact on property rights and the implications for individuals or companies that lease land. Critics could argue that extending tax collection responsibilities to include special assessments may impose additional financial burdens on non-owners, particularly if they are unable to handle the immediate costs of such assessments. Furthermore, discussions about how local authorities manage the fairness of these collections might surface, especially in areas where property values fluctuate and the associated tax assessments may not align with the actual benefits derived from public improvements.