Senate File 2069 - Introduced 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 1 reservations for certain assessment years. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5019XS (3) 87 md/rj

S.F. 2069 Section 1. Section 427C.1, Code 2018, is amended to read as 1 follows: 2 427C.1 Tax exemption — amount of exemption . 3 1. Any person who establishes a forest or fruit-tree 4 reservation as provided in this chapter shall be entitled to 5 the tax exemption provided by law. 6 2. a. Except as provided in paragraph “b” , the exemption 7 for forest or fruit-tree reservations authorized in this 8 chapter shall be one hundred percent of the actual value of the 9 property comprising the reservation. 10 b. For assessment years beginning on or after January 1, 11 2019, the exemption for forest reservations authorized in this 12 chapter shall be fifty percent of the actual value of the 13 property comprising the forest reservation. 14 Sec. 2. Section 427C.2, Code 2018, is amended to read as 15 follows: 16 427C.2 Reservations. 17 1. On For assessment years beginning before January 1, 2019, 18 any tract of land in the state of Iowa, the owner or owners may 19 select a permanent forest reservation or reservations, each 20 not less than two acres in continuous area, or a fruit-tree 21 reservation or reservations, not less than one nor more than 22 ten acres in total area, or both, and upon compliance with 23 the provisions of this chapter , such owner or owners shall be 24 entitled to the benefits provided by law. 25 2. For assessment years beginning on or after January 26 1, 2019, any tract of land in the state of Iowa, the owner 27 or owners may select a permanent forest reservation or 28 reservations, each not less than five acres in continuous area, 29 or a fruit-tree reservation or reservations, not less than 30 one nor more than ten acres in total area, or both, and upon 31 compliance with the provisions of this chapter, such owner or 32 owners shall be entitled to the benefits provided by law. 33 Sec. 3. Section 427C.6, Code 2018, is amended to read as 34 follows: 35 -1- LSB 5019XS (3) 87 md/rj 1/ 2

S.F. 2069 427C.6 Groves. 1 The trees of a forest reservation shall be in groves not 2 less than four rods wide except when the trees are growing or 3 are planted in or along a gully or ditch to control erosion in 4 which case any width will qualify provided the area meets the 5 size acreage requirement of two acres . 6 Sec. 4. Section 441.22, Code 2018, is amended to read as 7 follows: 8 441.22 Forest and fruit-tree reservations. 9 Forest and fruit-tree reservations fulfilling the conditions 10 of sections 427C.1 to 427C.13 chapter 427C shall be exempt from 11 taxation to the extent authorized in that chapter . In all 12 other cases where trees are planted upon any tract of land, 13 without regard to area, for forest, fruit, shade, or ornamental 14 purposes, or for windbreaks, the assessor shall not increase 15 the valuation of the property because of such improvements. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 Current Code chapter 427C authorizes a property tax 20 exemption for certain forest reservations and fruit-tree 21 reservations. To qualify for the exemption as a forest 22 reservation, the property must be at least two acres in 23 continuous area and meet certain tree density requirements. 24 This bill lowers the exemption percentage from 100 percent 25 to 50 percent for forest reservations for assessment years 26 beginning on or after January 1, 2019. The bill also increases 27 the minimum acreage requirement for forest reservations for 28 assessment years beginning on or after January 1, 2019, from 29 two acres to five acres of continuous area. 30 -2- LSB 5019XS (3) 87 md/rj 2/ 2