H.F. 2258 Section 1. FOREST AND FRUIT TREE RESERVATION PROPERTY TAX 1 EXEMPTION ADVISORY COMMITTEE. 2 1. The department of natural resources shall establish 3 a forest and fruit tree reservation property tax exemption 4 advisory committee as part of the department. The advisory 5 committee shall study Iowa’s forest and fruit tree reservation 6 law, chapter 427C and section 441.22, focusing on those 7 provisions of law that provide a property tax exemption to 8 landowners. 9 2. The advisory committee shall be composed of the following 10 voting members: 11 a. The director of the department of natural resources, or 12 the director’s designee. 13 b. The director of the economic development authority, or 14 the director’s designee. 15 c. One representative from each of the following 16 organizations or entities, appointed by the governor: 17 (1) The Iowa state association of county supervisors. 18 (2) The Iowa state association of assessors. 19 (3) The Iowa league of cities. 20 (4) The Iowa association of realtors. 21 (5) The Iowa woodland owners association. 22 (6) The Iowa environmental council. 23 (7) The Iowa farm bureau federation. 24 (8) The Iowa farmers union. 25 (9) The Iowa conservation alliance. 26 d. One individual taxpayer currently receiving a property 27 tax exemption under chapter 427C, appointed by the governor. 28 3. In addition to the voting members, the advisory committee 29 shall include four members of the general assembly with not 30 more than one member from each chamber being from the same 31 political party. The two senators shall be appointed one each 32 by the majority leader of the senate and by the minority leader 33 of the senate. The two representatives shall be appointed one 34 each by the speaker of the house of representatives and by the 35 -1- LSB 5181YH (4) 84 md/sc 1/ 4

H.F. 2258 minority leader of the house of representatives. Legislative 1 members shall serve in an ex officio, nonvoting capacity. A 2 legislative member is eligible for per diem and expenses as 3 provided in section 2.10. 4 4. The director of the department of natural resources or 5 the director’s designee shall serve as the chairperson of the 6 advisory committee. 7 5. In fulfilling its duties, the advisory committee shall 8 do all of the following: 9 a. Review and analyze issues relating to the property tax 10 exemption program under chapter 427C. 11 b. Examine the current status of the property tax exemption 12 program under chapter 427C including but not limited to the 13 number of acres that are currently receiving the exemption on 14 both a statewide and per county basis, and information relating 15 to the types of taxpayers currently utilizing the exemption. 16 c. Examine the economic impact and value of the tax 17 exemption program under chapter 427C, including an assessment 18 of public opinion of the program. 19 d. Study new and innovative ways to protect erodible soils 20 and to provide watershed protection. 21 e. Review similar forest and fruit tree reservation 22 programs in other midwestern states, including a determination 23 of whether such programs require forest or fruit tree 24 management plans and the costs of implementing and monitoring 25 such plans. The committee shall also determine an estimated 26 cost for implementing a management plan system as part of the 27 property tax exemption program under chapter 427C. 28 f. Estimate the economic impact to local government and 29 school district budgets from the property tax exemption under 30 chapter 427C. 31 g. Examine the current or potential abuses of the property 32 tax exemption under chapter 427C by property owners and 33 make recommendations to correct these abuses. Such abuses 34 may include but are not limited to forest and fruit tree 35 -2- LSB 5181YH (4) 84 md/sc 2/ 4

H.F. 2258 reservation landowners receiving economic benefits through 1 providing hunting privileges or by other means. 2 h. Review current enforcement provisions within the 3 chapter 427C program and make recommendations for improving 4 enforcement, including but not limited to identifying the 5 appropriate state or local officials authorized to enforce 6 the law, the costs of enforcement, and whether signage of 7 forest and fruit tree reservations would benefit those persons 8 required to enforce the law. 9 i. Review the appropriateness of the current level of 10 exemption under chapter 427C. 11 j. Consider the appropriateness of a cap on the number of 12 acres per county which may receive an exemption under chapter 13 427C in order to reduce property tax revenue loss. 14 k. Examine other means for local governments to replace the 15 lost property tax revenue due to the property tax exemption 16 under chapter 427C including but not limited to a requirement 17 that forest and fruit tree reservations be required to pay all 18 or a portion of specified property tax levies or the imposition 19 of a property tax levy on forest and fruit tree reservations. 20 6. The advisory committee shall approve recommendations 21 on all relevant items specified in subsection 4, paragraphs 22 “a” through “k”. The advisory committee shall prepare a 23 report that summarizes the advisory committee’s activities, 24 analyzes the issues studied by the advisory committee, includes 25 the recommendations approved by the advisory committee, and 26 includes any other information that the advisory committee 27 deems relevant. 28 7. The advisory committee shall submit the report prepared 29 under subsection 6 to the governor and the general assembly not 30 later than January 14, 2013. 31 EXPLANATION 32 This bill directs the department of natural resources to 33 establish a forest and fruit tree reservation property tax 34 exemption advisory committee as part of the department. The 35 -3- LSB 5181YH (4) 84 md/sc 3/ 4

H.F. 2258 advisory committee is required to study Iowa’s forest and 1 fruit tree reservation law (Code chapter 427C and Code section 2 441.22), focusing on those provisions of law that provide a 3 property tax exemption to landowners. 4 The advisory committee is composed of the following voting 5 members: the director of the department of natural resources, 6 or the director’s designee, who serves as the chairperson; 7 the director of the economic development authority, or the 8 director’s designee; one representative from each of nine 9 specified organizations or entities, appointed by the governor; 10 and one individual taxpayer currently receiving a property tax 11 exemption under the program, appointed by the governor. 12 In addition to the voting members, the advisory committee 13 includes four members of the general assembly with not more 14 than one member from each chamber being from the same political 15 party. The two senators shall be appointed one each by the 16 majority leader of the senate and by the minority leader of the 17 senate. The two representatives shall be appointed one each by 18 the speaker of the house of representatives and by the minority 19 leader of the house of representatives. Legislative members 20 shall serve in an ex officio, nonvoting capacity. 21 The bill specifies the issues under the forest and fruit tree 22 property tax exemption program to be reviewed by the advisory 23 committee, directs the advisory committee to review similar 24 laws from other states, and requires the advisory committee to 25 formulate recommendations. 26 The bill requires the advisory committee to prepare a report 27 that summarizes the advisory committee’s activities, analyzes 28 the issues studied, includes the recommendations approved by 29 the advisory committee, and includes any other information 30 that the advisory committee deems relevant and necessary. 31 The report must be submitted to the governor and the general 32 assembly not later than January 14, 2013. 33 -4- LSB 5181YH (4) 84 md/sc 4/ 4