SSB 1129 (LSB 2020XC (2) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON)

A BILL FOR

An Act modifying provisions governing the taxation of forest reservations and fruit-tree reservations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427C.1, Code 2023, is amended to read as follows:
   427C.1  Tax 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 in this chapter.
   2.  a.  For the assessment year beginning January 1, 2024, the amount of the exemption for each qualifying reservation shall be that portion of the actual value of the reservation that exceeds an amount equal to the product of the number of acres of the reservation multiplied by twenty-five percent of the county valuation per acre of agricultural property determined pursuant to section 441.21, subsection 1, paragraph “e”, for the same assessment year.
   b.  For the assessment year beginning January 1, 2025, and each succeeding assessment year, the amount of the exemption for each qualifying reservation shall be that portion of the actual value of the reservation that exceeds an amount equal to the product of the number of acres of the reservation multiplied by fifty percent of the county valuation per acre of agricultural property determined pursuant to section 441.21, subsection 1, paragraph “e”, for the same assessment year.
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. The bill provides that for the assessment year beginning January 1, 2024, the amount of the exemption for each qualifying reservation shall be that portion of the actual value of the reservation that exceeds an amount equal to the product of the number of acres of the reservation multiplied by 25 percent of the county valuation per acre of agricultural property determined pursuant to Code section 441.21(1)(e) for the same assessment year. For the assessment year beginning January 1, 2025, and each succeeding assessment year, the amount of the exemption for each qualifying reservation shall be that portion of the actual value of the reservation that exceeds an amount equal to the product of the number of acres of the reservation multiplied by 50 percent of the county valuation per acre of agricultural property determined pursuant to Code section 441.21(1)(e) for the same assessment year.