Text: HF00557 Text: HF00559 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 427C.12, unnumbered paragraph 2, Code 1 2 1995, is amended to read as follows: 1 3 The board of supervisors shall designate the county 1 4 conservation board or the assessor who shall inspect the area 1 5 for which an application is filed for a fruit-tree or forest 1 6 reservation tax exemption before the application is accepted. 1 7 Use of aerial photographs may be substituted for on-site 1 8 inspection when appropriate. The application can only be 1 9 accepted if it meets the criteria established by the natural 1 10 resource commission to be a fruit-tree or forest reservation. 1 11 Once the application has been accepted, the area shall 1 12 continue to receive the tax exemption during each year in 1 13 which the area is maintained as a fruit-tree or forest 1 14 reservation without the owner having to refile. If the 1 15 property is sold or transferred,the buyer or transferee does1 16not have to refile for the tax exemptionthe seller shall 1 17 notify the buyer that all, or part of, the property is in 1 18 fruit-tree or forest reservation and subject to the recapture 1 19 tax provisions of this section. The tax exemption shall 1 20 continue to be granted for the remainder of the eight-year 1 21 period for fruit-tree reservation and for the following years 1 22 for forest reservation or until the property no longer 1 23 qualifies as a fruit-tree or forest reservation. The area may 1 24 be inspected each year by the county conservation board or the 1 25 assessor to determine if the area is maintained as a fruit- 1 26 tree or forest reservation. If the area is not maintained or 1 27 is used for economic gain other than as a fruit-tree 1 28 reservation during any year of the eight-year exemption period 1 29 and any year of the following five years or as a forest 1 30 reservation during any year for which the exemption is granted 1 31 and any of the five years following those exemption years, the 1 32 assessor shall assess the property for taxation at its fair 1 33 market value as of January 1 of that year and in addition the 1 34 area shall be subject to a recapture tax. However, the area 1 35 shall not be subject to the recapture tax if the owner, 2 1 including one possessing under a contract of sale, and the 2 2 owner's direct antecedents or descendants have owned the area 2 3 for more than ten years. The tax shall be computed by 2 4 multiplying the consolidated levy for each of those years, if 2 5 any, of the five preceding years for which the area received 2 6 the exemption for fruit-tree or forest reservation times the 2 7 assessed value of the area that would have been taxed but for 2 8 the tax exemption. This tax shall be entered against the 2 9 property on the tax list for the current year and shall 2 10 constitute a lien against the property in the same manner as a 2 11 lien for property taxes. The tax when collected shall be 2 12 apportioned in the manner provided for the apportionment of 2 13 the property taxes for the applicable tax year. 2 14 Sec. 2. This Act, being deemed of immediate importance, 2 15 takes effect upon enactment and applies to sales or transfers 2 16 of property made on or after the date of enactment. 2 17 EXPLANATION 2 18 Under present law, property tax exemptions are allowed for 2 19 fruit-tree reservations (8 years) and forest reservations (no 2 20 limit) that meet certain criteria. However, a recapture tax 2 21 is imposed if at any time during the exemption period or 2 22 within five years after the exemption is no longer applied, 2 23 the property ceases to be used as a fruit-tree or forest 2 24 reservation. The recapture tax also applies to a person who 2 25 may have not owned the property when it was receiving the 2 26 exemption. This bill requires the seller to notify the buyer 2 27 that the property is subject to a recapture tax. 2 28 The bill takes effect upon enactment for sales or transfers 2 29 of property made on or after that date. 2 30 LSB 1781HV 76 2 31 mg/cf/24
Text: HF00557 Text: HF00559 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
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