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Bill

SF 28

ROTC endowment program.

2025 Regular Session

Allows local governments to cancel a tax sale for abandoned-building parcels before redemption and refund the certificate holder the purchase price plus interest.

H:Died in Committee Returned Bill Pursuant to HR 5-4
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Bill Summary · SF 28

Summary: SF 28 (2025)

SF 28 is a bill that allows city or county governments to cancel a tax sale and refund the purchase money to a tax sale certificate holder when a parcel sold at tax sale contains an abandoned building. The change applies before redemption or the issuance of a tax deed and requires a joint action by the taxing authority and the holder of the tax certificate.

Purpose and intent

  • Provide a specific mechanism for local governments to address parcels with abandoned buildings by canceling the tax sale and refunding the certificate holder.
  • Ensure abandoned properties are handled in a timely manner to support municipal control and redevelopment efforts.

Key provisions

1) Section 448.13 – Cancellation of tax sale and certificate of purchase; refund
- If the county treasurer receives a verified statement from a city or county stating that a parcel sold at tax sale contains an abandoned building (as defined in 657A.1), prior to redemption or tax deed issuance, and the statement is accompanied by a petition filed under 657A.10B for title, the treasurer must:
- Cancel the tax sale in the county system.
- Refund the purchase money to the tax sale certificate holder as provided under 657.10B.

2) Section 657A.10B, subsection 7 – Filing and refund process when abandoned property is involved
- When a city or county files a petition naming the tax sale certificate holder as a respondent, the city/county must also file a petition with a verified statement declaring the property contains an abandoned building (with the county treasurer).
- Upon receipt, the treasurer must:
- Cancel the sale in the county system.
- Refund the purchase money to the certificate holder, including interest of 2% per month, counting fractions of a month as full months.
- The refund covers the sum of the purchase money plus any amounts added to the amount due under section 447.1, with interest calculated on that sum, from the date of purchase to the refund date.

Notes:
- “Abandoned building” is defined in 657A.1.
- Refunds are issued under the framework of existing provisions in 657.10B and 447.1.

Process flow (high-level)

  • City/county identifies abandoned building on a tax sale parcel → files petition under 657A.10B for title + verified statement of abandonment → county treasurer cancels the sale → certificate holder receives refund of purchase money plus 2% monthly interest on the refundable amount.

Affected parties

  • Cities and counties (local governments) and their treasurers.
  • Tax sale certificate holders.
  • Property owners and potential developers seeking to address abandoned properties.

Financial implications

  • Mandatory refund of the purchase money plus any amounts due under 447.1, plus 2% simple monthly interest on the refunded amount.
  • Interest accrues per month, with fractions counted as full months.

Timeline and status

  • Introduced: January 14, 2025.
  • Subcommittee action: Subcommittee recommended passage (January 27, 2025).
  • Subcommittee meeting originally scheduled for January 23, 2025; final action anticipated by the end of January.
  • Sponsor: McCLINTOCK (primary).

Sponsor and actions

  • Primary sponsor: McCLINTOCK.
  • Status: Subcommittee recommends passage; awaiting full committee action.

This bill targets the handling of abandoned-building parcels by aligning dissolution of tax sales with verified local determinations, while ensuring certificate holders receive an explicit refund with interest.

Compiled from official sources — confirm details with the bill’s official record.

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