SF 2069 (LSB 5019XS (3) 87)

SENATE FILE 2069

BY  SINCLAIR, ROZENBOOM, BROWN, SHIPLEY, SCHULTZ, EDLER, CHELGREN, ZUMBACH, SEGEBART, and COSTELLO

A BILL FOR

An Act relating to the property tax exemption for forest reservations for certain assessment years.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427C.1, Code 2018, is amended to read as follows:
   427C.1  Tax exemption — amount of exemption.
   1.  Any person who establishes a forest or fruit-tree reservation as provided in this chapter shall be entitled to the tax exemption provided by law.
   2.  a.  Except as provided in paragraph “b”, the exemption for forest or fruit-tree reservations authorized in this chapter shall be one hundred percent of the actual value of the property comprising the reservation.
   b.  For assessment years beginning on or after January 1, 2019, the exemption for forest reservations authorized in this chapter shall be fifty percent of the actual value of the property comprising the forest reservation.
    Sec. 2.  Section 427C.2, Code 2018, is amended to read as follows:
   427C.2  Reservations.
   1.  On For assessment years beginning before January 1, 2019, any tract of land in the state of Iowa, the owner or owners may select a permanent forest reservation or reservations, each not less than two acres in continuous area, or a fruit-tree reservation or reservations, not less than one nor more than ten acres in total area, or both, and upon compliance with the provisions of this chapter, such owner or owners shall be entitled to the benefits provided by law.
   2.  For assessment years beginning on or after January 1, 2019, any tract of land in the state of Iowa, the owner or owners may select a permanent forest reservation or reservations, each not less than five acres in continuous area, or a fruit-tree reservation or reservations, not less than one nor more than ten acres in total area, or both, and upon compliance with the provisions of this chapter, such owner or owners shall be entitled to the benefits provided by law.
    Sec. 3.  Section 427C.6, Code 2018, is amended to read as follows:
   427C.6  Groves.
   The trees of a forest reservation shall be in groves not less than four rods wide except when the trees are growing or are planted in or along a gully or ditch to control erosion in which case any width will qualify provided the area meets the size acreage requirement of two acres.
    Sec. 4.  Section 441.22, Code 2018, is amended to read as follows:
   441.22  Forest and fruit-tree reservations.
   Forest and fruit-tree reservations fulfilling the conditions of sections 427C.1 to 427C.13 chapter 427C shall be exempt from taxation to the extent authorized in that chapter. In all other cases where trees are planted upon any tract of land, without regard to area, for forest, fruit, shade, or ornamental purposes, or for windbreaks, the assessor shall not increase the valuation of the property because of such improvements.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Current Code chapter 427C authorizes a property tax exemption for certain forest reservations and fruit-tree reservations. To qualify for the exemption as a forest reservation, the property must be at least two acres in continuous area and meet certain tree density requirements. 
   This bill lowers the exemption percentage from 100 percent to 50 percent for forest reservations for assessment years beginning on or after January 1, 2019. The bill also increases the minimum acreage requirement for forest reservations for assessment years beginning on or after January 1, 2019, from two acres to five acres of continuous area.