House Study Bill 500 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON PAUSTIAN) A BILL FOR An Act relating to the classification of property enrolled 1 in the federal conservation reserve program and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5097YC (3) 89 md/jh
H.F. _____ Section 1. Section 441.21, subsection 6, Code 2022, is 1 amended to read as follows: 2 6. a. Beginning with valuations established as of January 3 1, 1978, the assessors shall report the aggregate taxable 4 values and the number of dwellings located on agricultural 5 land and the aggregate taxable value of all other structures 6 on agricultural land. Beginning with valuations established 7 as of January 1, 1981, the agricultural dwellings located on 8 agricultural land shall be valued at their market value as 9 defined in this section and agricultural dwellings shall be 10 valued as rural residential property and shall be assessed at 11 the same percentage of actual value as is all other residential 12 property. 13 b. Land enrolled in the conservation reserve program 14 under 7 C.F.R. pt. 1410, shall not be classified or valued as 15 residential property. 16 Sec. 2. APPLICABILITY. This Act applies to assessment years 17 beginning on or after January 1, 2023. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 The United States department of agriculture’s conservation 22 reserve program (CRP) is a land conservation program 23 administered by the federal farm service agency (FSA). In 24 exchange for a yearly rental payment, property owners enrolled 25 in the program enter into contracts with the FSA to remove 26 environmentally sensitive land from agricultural production 27 and plant species that will improve environmental health and 28 quality. This bill prohibits land from being classified or 29 valued as residential property for property tax purposes under 30 Iowa law while the property is enrolled in the CRP. 31 The bill applies to property tax assessment years beginning 32 on or after January 1, 2023. 33 -1- LSB 5097YC (3) 89 md/jh 1/ 1