HF 634 (LSB 2007YH (1) 91)

HOUSE FILE 634

BY  HARRIS

A BILL FOR

An Act relating to forest and fruit-tree reservations, and providing for a fee.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  427C.14  Program fee.
   1.  Beginning January 1, 2026, each acre of forest and fruit-tree reservation that is exempt from tax pursuant to this chapter shall be subject to a fee to be paid no later than September 1 of each year to the county treasurer of the county where the forest or fruit-tree reservation is located to be deposited into the county general fund.
   2.  Fee rates shall be in the following amounts:
   a.  Subject to paragraph “c”, for forest and fruit-tree reservations located in the county where the owner of the forest or fruit-tree reservation maintains a homestead for purposes of chapter 425, two dollars per acre.
   b.  Subject to paragraph “c”, for forest and fruit-tree reservations located in a county that is contiguous to the county where the owner of the forest or fruit-tree reservation maintains a homestead for purposes of chapter 425, three dollars per acre.
   c.  (1)  For forest and fruit-tree reservations not described by paragraph “a” or “b”, and forest and fruit-tree reservations located inside the corporate limits of a city, a rate per acre equal to the product of the average property taxes due per acre of agricultural property in the county with the most acres of land subject to an exemption under this chapter for the assessment year used to calculate the taxes due and payable in that fiscal year multiplied by the quotient of thirteen divided by the average corn suitability rating for agricultural property located in the county with the most acres of property subject to an exemption under this chapter.
   (2)  The department of management shall make all calculations necessary to determine the fee rate in subparagraph (1) and transmit the rate to each county treasurer no later than July 1 of each year.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Currently, a person who establishes a forest or fruit-tree reservation (reservation) is entitled to a property tax exemption on the tract of land selected to be a reservation, subject to certain conditions.
   Beginning January 1, 2026, this bill establishes a fee structure for reservations dependent upon where the reservation is located. For a reservation located in a county where the owner of the reservation maintains a homestead, the fee is $2 per acre per year. For a reservation located in a county contiguous to the county where the owner of the reservation maintains a homestead, the fee is $3 per acre per year. For all other reservations, including a reservation located inside the corporate limits of a city, the fee shall be a rate per acre equal to a formula calculated by the department of management. Fees collected under the bill are to be paid no later than September 1 of each year to the county treasurer of the county where the forest or fruit-tree reservation is located to be deposited into the county general fund.