H.F. 306 Section 1. Section 427C.3, Code 2013, is amended to read as 1 follows: 2 427C.3 Forest reservation —— forest management plan required . 3 1. A forest reservation shall contain not less than two 4 hundred growing forest trees on each acre. If Subject to the 5 requirements of subsections 3 and 4, if the area selected is a 6 forest containing the required number of growing forest trees, 7 it shall be accepted as a forest reservation under this chapter 8 provided application is made or on file on or before February 1 9 of the exemption year. 10 2. If any buildings are standing on an area selected 11 as a forest reservation under this section or a fruit-tree 12 reservation under section 427C.7 , one acre of that area shall 13 be excluded from the tax exemption. However, the exclusion 14 of that acre shall not affect the area’s meeting the acreage 15 requirement of section 427C.2 . 16 3. On or after July 1, 2013, a tract of land shall not 17 be initially accepted for a forest reservation tax exemption 18 under this chapter unless the application for the exemption 19 is accompanied by a forest management plan approved by a 20 qualified forester who has a bachelor’s or graduate degree 21 from an accredited college or university with a major in 22 forestry. The natural resource commission shall, by rule, 23 define the qualifications of a qualified forester and specify 24 what criteria must be included in the forest management plan. 25 4. a. The owner of a tract of land accepted for a forest 26 reservation tax exemption before July 1, 2013, shall file 27 a forest management plan approved by a qualified forester 28 for the forest reservation as required under subsection 3, 29 with the county assessor by July 1, 2018. If the plan is not 30 timely filed with the assessor, the assessor shall assess the 31 property for taxation at its fair market value or, on property 32 classified as agricultural property, on the basis of the 33 productivity and net earning capacity of the property, as of 34 January 1, 2018, as provided in section 427C.12. 35 -1- LSB 1289YH (9) 85 av/nh 1/ 5

H.F. 306 b. The owner of a tract of land accepted for a forest 1 reservation tax exemption before July 1, 2013, who has a forest 2 management plan for the forest reservation that was prepared 3 within five years prior to July 1, 2013, shall file a copy of 4 the forest management plan with the county assessor. However, 5 if the forest management plan filed by the owner does not 6 meet the requirements of subsection 3, the owner shall file 7 a new forest management plan that meets the requirements of 8 subsection 3 by July 1, 2018. If the plan is not timely filed 9 with the assessor, the assessor shall assess the property for 10 taxation at its fair market value or, on property classified 11 as agricultural property, on the basis of the productivity and 12 net earning capacity of the property, as of January 1, 2018, 13 as provided in section 427C.12. 14 5. a. The owner of a tract of land accepted for a forest 15 reservation tax exemption under this chapter shall have the 16 forest management plan for the forest reservation reviewed 17 by a qualified forester every ten years subsequent to the 18 initial acceptance of the tract of land for the exemption and 19 shall file a report of the review with the county assessor. 20 The natural resource commission shall, by rule, define the 21 requirements for renewal of a forest management plan under this 22 subsection. If the landowner does not meet the requirements 23 for renewal of a forest management plan under this subsection, 24 the assessor shall assess the property for taxation as provided 25 in section 427C.12. 26 b. Notwithstanding paragraph “a” , the county assessor may 27 require the owner of a tract of land accepted for a forest 28 reservation tax exemption under this chapter to have the forest 29 management plan for the forest reservation reviewed by a 30 qualified forester and a report of the review filed with the 31 assessor at any time, upon receipt of a complaint that the 32 property is not being maintained as a forest reservation as 33 required under this chapter. If the landowner does not meet 34 the requirements for renewal of a forest management plan, the 35 -2- LSB 1289YH (9) 85 av/nh 2/ 5

H.F. 306 assessor shall assess the property for taxation as provided in 1 section 427C.12. 2 Sec. 2. Section 427C.12, Code 2013, is amended to read as 3 follows: 4 427C.12 Application —— inspection —— continuation of 5 exemption —— recapture of tax. 6 1. It shall be the duty of the assessor to secure the facts 7 relative to fruit-tree and forest reservations by taking the 8 sworn statement, or affirmation, of the owner or owners making 9 application under this chapter ; and to make special report to 10 the county auditor of all reservations made in the county under 11 the provisions of this chapter . 12 2. The board of supervisors shall designate the county 13 conservation board or the assessor who shall inspect the area 14 for which an application is filed for a fruit-tree or forest 15 reservation tax exemption before the application is accepted. 16 Use of aerial photographs may be substituted for on-site 17 inspection when appropriate. The application can only be 18 accepted if it meets the criteria established by the natural 19 resource commission to be a fruit-tree or forest reservation. 20 Once the application has been accepted, the area shall continue 21 to receive the tax exemption during each year in which the 22 area is maintained as a fruit-tree or forest reservation 23 without the owner having to refile. If the property is 24 sold or transferred, the seller shall notify the buyer that 25 all, or part of, the property is in fruit-tree or forest 26 reservation and subject to the recapture tax provisions of 27 this section . The tax exemption shall continue to be granted 28 for the remainder of the eight-year period for fruit-tree 29 reservation and for the following years for forest reservation 30 or until the property no longer qualifies as a fruit-tree or 31 forest reservation. The area may be inspected each year by 32 the county conservation board or the assessor to determine if 33 the area is maintained as a fruit-tree or forest reservation. 34 If the area is not maintained or is used for economic gain 35 -3- LSB 1289YH (9) 85 av/nh 3/ 5

H.F. 306 other than as a fruit-tree reservation during any year of the 1 eight-year exemption period and any year of the following five 2 years or as a forest reservation during any year for which the 3 exemption is granted and any of the five years following those 4 exemption years, the assessor shall assess the property for 5 taxation at its fair market value or, on property classified 6 as agricultural property, on the basis of the productivity and 7 net earning capacity of the property, as of January 1 of that 8 year and in addition the area shall be subject to a recapture 9 tax. However, the area shall not be subject to the recapture 10 tax if the owner, including one possessing under a contract 11 of sale, and the owner’s direct antecedents or descendants 12 have owned the area for more than ten years. The tax shall be 13 computed by multiplying the consolidated levy for each of those 14 years, if any, of the five preceding years for which the area 15 received the exemption for fruit-tree or forest reservation 16 times the assessed value of the area that would have been taxed 17 but for the tax exemption. This tax shall be entered against 18 the property on the tax list for the current year and shall 19 constitute a lien against the property in the same manner as 20 a lien for property taxes. The tax when collected shall be 21 apportioned in the manner provided for the apportionment of the 22 property taxes for the applicable tax year. 23 EXPLANATION 24 This bill requires that a tract of land shall not be accepted 25 for a forest reservation tax exemption unless the application 26 for the exemption is accompanied by a forest management plan 27 approved by a qualified forester with a bachelor’s or graduate 28 degree in forestry. The natural resource commission shall, by 29 rule, define the qualifications of a qualified forester and 30 specify what criteria must be included in the forest management 31 plan. 32 The owner of land accepted for a forest reservation tax 33 exemption before July 1, 2013, is required to file a forest 34 management plan approved by a qualified forester with the 35 -4- LSB 1289YH (9) 85 av/nh 4/ 5

H.F. 306 county assessor by July 1, 2018, or lose the tax exemption on 1 that property. 2 The owner of land accepted for a forest reservation tax 3 exemption before July 1, 2013, who has a forest management plan 4 for the forest reservation that was prepared within five years 5 prior to that date, shall file a copy of the forest management 6 plan with the county assessor. However, if that plan does not 7 meet the requirements of the bill, the owner must file a new 8 forest management plan that does meet those requirements by 9 July 1, 2018, or lose the tax exemption on that property. 10 The bill provides that if the tax exemption is lost, the 11 property shall be assessed at its fair market value or, on 12 property classified as agricultural, on the basis of the 13 productivity and net earning capacity of the property, as of 14 January 1 of the year the exemption is lost. 15 The bill also provides that the forest management plan of a 16 forest reservation must be reviewed every 10 years after the 17 initial acceptance of a tract of land as a forest reservation 18 and a report of the review filed with the county assessor. The 19 natural resource commission shall adopt rules that specify 20 the requirements for renewal of a forest management plan. If 21 the landowner does not meet the requirements for renewal, the 22 assessor shall assess the property for taxation as provided in 23 Code section 427C.12. 24 In addition, the county assessor may require review of a 25 forest management plan by a qualified forester at any time, 26 upon receipt of a complaint that the property is not being 27 maintained as a forest reservation as required by Code chapter 28 427C. If the landowner does not meet the requirements for 29 renewal of the plan, the assessor shall assess the property for 30 taxation as provided in Code section 427C.12. 31 -5- LSB 1289YH (9) 85 av/nh 5/ 5