Bills › 88th General Assembly
Relating to specific circumstances requiring the submission of a groundwater hazard statement with the declaration of value submitted to a county recorder in order to grant, assign, transfer, or convey real property
Sponsored by the Senate Ways and Means (successor To Ssb 1125) (companion To Hf 708 By Committee on State Government) Committee
Topics:Taxes
Where it is now
- Done: IntroducedMarch 6, 2019
- Done: SubcommitteeMarch 20, 2019
- Done: Senate committeeMarch 6, 2019
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
The inclusion of this explanation does not constitute agreement with the explanation’s substance by the members of the general assembly. This bill relates to the specific circumstances requiring submission of a groundwater hazard statement with a declaration of value submitted to a county recorder in order to grant, assign, transfer, or convey real property. Current law requires that a groundwater hazard statement be submitted with each declaration of value submitted to the county recorder under Code chapter 428A (real estate transfer tax).
Read the full explanation
The bill requires that a groundwater hazard statement be prepared for each declaration of value submitted to the county recorder under Code chapter 428A. However, the groundwater hazard statement only needs to be submitted to the county recorder if a known private burial site, a known well, a known disposal site for solid waste, a known underground storage tank, known hazardous waste, or a known private sewage disposal system is disclosed on the groundwater hazard statement. The bill requires that the buyer of a property be provided with a copy of the prepared groundwater hazard statement and provides that the owner of the property is responsible for the accuracy of the information disclosed on the statement. If the groundwater hazard statement is submitted to the county recorder, the county recorder must transmit a copy to the department of natural resources as directed by the director of the department.
Senate subcommittee
Named January 16, 2020. It hasn’t reported yet.
- Sen. Jake Chapman R
- Sen. Pam Jochum D
- Sen. R. Smith
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
Cost: up to $839,000 Compare with other bills
AI summary Senate File 626 changes the rules for when people must submit groundwater hazard statements to county recorders. It is estimated that counties would collect between $562,000 and $674,000 annually in fees, which is a reduction of approximately $727,000 to $839,000 per year compared to the system currently scheduled to take effect on July 1, 2019.2
Read the fiscal note
Description
Senate File 626 modifies the recording requirements for groundwater hazard statements. Currently, groundwater hazard statements are required to be submitted to the county recorder with any deed, instrument, or writing for which a declaration of value is required under Iowa Code chapter 428A. Under this Bill, a groundwater hazard statement would not need to be submitted to the county recorder if there was no known private burial site, well, disposal site for solid waste, underground storage tank, hazardous waste, or private sewage disposal system disclosed in the groundwater hazard statement. The county recorder is directed to collect a fee of $12 with each groundwater hazard statement submitted pursuant to the revised subsection.
Background
- Currently and historically, county recorders have not been collecting fees for groundwater hazard statements. However, the Iowa County Recorders Association, in consultation with legal counsel, determined this lack of recording fees was an error and the association informed stakeholders in September 2018 that county recorders would begin charging fees as prescribed by law beginning July 1, 2019.
- Iowa Code section 331.604 established recording fees at a rate of $5 per page, $1 per document for the public record management fund, and $1 per document for the e-commerce fund.
- In 2018 there were approximately 93,700 groundwater hazard statements filed, totaling 242,744 pages.
Assumptions
If the number of documents and pages remain consistent, under current law counties in aggregate could anticipate approximately $1.2 million in fee revenues that would be considered property tax relief as the fees would reduce the General Fund dollars needed for operating the county recorder offices. Counties could also anticipate $93,700 for both the record management fund and the e-commerce fund.
It is estimated that between 40.0% and 50.0% of groundwater hazard statements would not need to be submitted to county recorders under this Bill.
Fiscal Impact
Under the proposed changes in SF 626, counties would collect an estimated $562,000 to $674,000 annually. Compared to the system currently scheduled to take effect on July 1, 2019, this would be a reduction of approximately $727,000 to $839,000 per year.
Source
- Iowa State Association of Counties
- Groundwater Hazard Statement, Repeal · April 18, 2019 · $839,000
- Groundwater Hazard Statement, Repeal · March 22, 2019 · $839,000
- Groundwater Hazard Statement, Repeal · March 20, 2019 · $839,000