Senate File 28 - Introduced SENATE FILE 28 BY McCLINTOCK A BILL FOR An Act relating to cities or counties canceling the sale 1 of property containing abandoned buildings to a tax sale 2 certificate holder. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1224XS (3) 91 jm/md
S.F. 28 Section 1. Section 448.13, Code 2025, is amended to read as 1 follows: 2 448.13 Cancellation of tax sale and certificate of purchase 3 refund of purchase money. 4 If the county treasurer receives a verified statement from a 5 city or county stating that a parcel sold at tax sale contains 6 a building that is abandoned, as those terms are defined in 7 section 657A.1 , prior to redemption of the parcel under chapter 8 447 or the issuance of a tax deed for the parcel, and the 9 verified statement is accompanied by a petition filed by the 10 city or county under section 657A.10B for title to the parcel, 11 the county treasurer shall make an entry in the county system 12 canceling the sale of the parcel and shall refund the purchase 13 money to the tax sale certificate holder as provided under 14 section 657.10B . 15 Sec. 2. Section 657A.10B, subsection 7, Code 2025, is 16 amended to read as follows: 17 7. If a city or county files a petition under subsection 2 , 18 naming the holder of a tax sale certificate of purchase for the 19 property as a respondent, the city or county shall also file 20 the petition, along with a verified statement declaring that 21 the property identified in the petition contains an abandoned 22 building, with the county treasurer. Upon receiving the 23 petition and verified statement, the county treasurer shall 24 make an entry in the county system canceling the sale of the 25 property and shall refund the purchase money to the tax sale 26 certificate holder , including interest of two percent per 27 month, counting each fraction of a month as an entire month, 28 on the sum of the purchase money and any amounts added to 29 the amount due under section 447.1, calculated from the date 30 of purchase of the property by the holder until the date the 31 purchase money, any added amounts, and the interest calculated 32 pursuant to this subsection are refunded . 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -1- LSB 1224XS (3) 91 jm/md 1/ 2
S.F. 28 the explanations substance by the members of the general assembly. 1 This bill relates to cities or counties canceling the sale 2 of property containing abandoned buildings to a tax sale 3 certificate holder. 4 Currently, if a city or county files a petition against 5 the holder of a tax sale certificate, and the tax certificate 6 holders property is verified to contain an abandoned building, 7 the county treasurer is required to cancel the sale of the 8 property and is required to refund the purchase money to the 9 tax sale certificate holder. If the sale of such a property is 10 canceled, the bill requires the city or county to refund the 11 purchase money plus interest of 2 percent per month on the sum 12 of the purchase money and any amounts added to the amount due 13 under Code section 447.1. 14 -2- LSB 1224XS (3) 91 jm/md 2/ 2