How to Find Surplus Funds in Iowa
Iowa operates under a tax lien certificate system, which means that when property owners fall behind on their taxes, the county sells tax lien certificates to investors at annual auctions rather than selling the property outright. These auctions typically take place each June across all 99 Iowa counties. If the winning bid at a tax sale exceeds the total amount of delinquent taxes, penalties, interest, and costs owed, the excess payment becomes surplus funds. The Iowa statute that addresses tax sale surplus is Iowa Code 446.37 — read the current statute text on the official Iowa Legislature website for specifics. In practice, surplus is held by the county in a dedicated fund.
Key Iowa Counties with Surplus Funds
Because surplus funds are generated wherever tax lien certificates sell above the minimum bid, the largest counties with the highest property values tend to produce the most surplus. Three counties stand out in particular:
Polk County is home to Des Moines and is the most populous county in Iowa. With a large volume of annual tax sales and higher property assessments, Polk County consistently generates significant surplus funds. Former property owners in the Des Moines metro area should check with the Polk County Treasurer for any unclaimed overpayments tied to past tax sales.
Linn County, which includes Cedar Rapids, is the second-largest county by population. The combination of residential and commercial properties cycling through tax sales means Linn County regularly holds surplus funds waiting to be claimed by prior owners or their heirs.
Scott County, encompassing Davenport and the Quad Cities region on the Mississippi River, rounds out the top three. Scott County's diverse property market contributes to a steady flow of tax sale surplus each year.
How to Claim Surplus Funds in Iowa
Former property owners in Iowa can claim surplus funds by filing a request with the County Auditor or County Treasurer in the county where the property was located. The process generally requires proof of identity, documentation establishing your ownership interest at the time of the tax sale, and a written claim. Iowa law provides a limited window for former owners to recover these funds, so acting promptly is important. In many cases, heirs and successors may also be eligible to file a claim if the original owner is deceased.
It is worth noting that each county may have slightly different forms and procedures, so contacting the relevant county office directly is always a good first step. Some counties publish lists of surplus fund holders on their websites, while others require an in-person or written inquiry.
Start by browsing our Iowa surplus funds directory to see if any unclaimed funds are waiting for you.