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House File 2093 - IntroducedA Bill ForAn Act 1authorizing county boards of supervisors to determine
2whether the county permits forest and fruit-tree reservation
3tax exemptions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427C.1, Code 2024, is amended to read as
2follows:
3427C.1 Tax exemption.
4Any Subject to the provisions of section 427C.14, any person
5who establishes a forest or fruit-tree reservation as provided
6in this chapter shall be entitled to the tax exemption provided
7by law.
8 Sec. 2. Section 427C.2, Code 2024, is amended to read as
9follows:
10427C.2 Reservations.
11On any tract of land in the state of Iowa, the owner or
12owners may select a permanent, subject to section 427C.14,
13 forest reservation or reservations, each not less than two
14acres in continuous area, or a fruit-tree reservation or
15reservations, not less than one nor more than ten acres in
16total area, or both, and upon compliance with the provisions
17of this chapter, such owner or owners shall be entitled to the
18benefits provided by law.
19 Sec. 3. Section 427C.7, Code 2024, is amended to read as
20follows:
21427C.7 Fruit-tree reservation — duration of exemption.
22A fruit-tree reservation shall contain on each acre,
23at least forty apple trees, or seventy other fruit trees,
24growing under proper care and annually pruned and sprayed. A
25reservation may be claimed as a fruit-tree reservation, under
26this chapter, for a period of eight years, subject to section
27427C.14, after planting provided application is made or on file
28on or before February 1 of the exemption year.
29 Sec. 4. Section 427C.12, Code 2024, is amended to read as
30follows:
31427C.12 Application — inspection — continuation of
32exemption — recapture of tax.
331. It shall be the duty of the assessor to secure the facts
34relative to fruit-tree and forest reservations by taking the
35sworn statement, or affirmation, of the owner or owners making
-1-1application under this chapter; and to make special report to
2the county auditor of all reservations made in the county under
3the provisions of this chapter.
42. a. The board of supervisors shall designate the county
5conservation board or the assessor who shall inspect the area
6for which an application is filed for a fruit-tree or forest
7reservation tax exemption before the application is accepted.
8b. Use of aerial photographs may be substituted for on-site
9inspection when appropriate.
10c. The application can only be accepted if it meets the
11criteria established by the natural resource commission to be a
12fruit-tree or forest reservation.
133. Once the application has been accepted, and subject to
14section 427C.14, the area shall continue to receive the tax
15exemption during each year in which the area is maintained as a
16fruit-tree or forest reservation without the owner having to
17refile.
184. If the property is sold or transferred, the seller shall
19notify the buyer that all, or part of, the property is in
20fruit-tree or forest reservation and subject to the recapture
21tax provisions of this section.
225. The tax exemption shall continue to be granted for the
23remainder of the eight-year period for fruit-tree reservation
24and for the following years for forest reservation or until
25the property no longer qualifies as a fruit-tree or forest
26reservation.
276. a. The area may be inspected each year by the county
28conservation board or the assessor to determine if the area is
29maintained as a fruit-tree or forest reservation.
30b. If the area is not maintained or is used for economic
31gain other than as a fruit-tree reservation during any year of
32the eight-year exemption period and any year of the following
33five years or as a forest reservation during any year for which
34the exemption is granted and any of the five years following
35those exemption years, the assessor shall assess the property
-2-1for taxation at its fair market value as of January 1 of that
2year and in addition the area shall be subject to a recapture
3tax. However, the
4c. Thearea shall not be subject to the recapture tax if the
5owner, including one possessing under a contract of sale, and
6the owner’s direct antecedents or descendants have owned the
7area for more than ten years.
87. a. The tax due after a county conservation board or
9assessor determines, pursuant to subsection 6, paragraph “b”,
10that an area is no longer entitled to an exemption shall be
11computed by multiplying the consolidated levy for each of those
12years, if any, of the five preceding years for which the area
13received the exemption for fruit-tree or forest reservation
14times the assessed value of the area that would have been taxed
15but for the tax exemption.
16b. This tax shall be entered against the property on the tax
17list for the current year and shall constitute a lien against
18the property in the same manner as a lien for property taxes.
19c. The tax when collected shall be apportioned in the manner
20provided for the apportionment of the property taxes for the
21applicable tax year.
22 Sec. 5. Section 427C.13, Code 2024, is amended to read as
23follows:
24427C.13 Report to department of natural resources.
25The county assessor shall keep a record of all forest and
26fruit-tree reservations in the county and submit a report of
27the reservations to the department of natural resources not
28later than June 15 of each year. This section shall not apply
29to counties which have an ordinance passed pursuant to section
30427C.14, subsection 1, in effect.
31 Sec. 6. NEW SECTION. 427C.14 Availability of exemptions
32within county.
331. A county board of supervisors may discontinue exemptions
34pursuant to this chapter in the county by ordinance.
352. Areas within a county designated as a forest or
-3-1fruit-tree reservation pursuant to this chapter prior to the
2passage of such an ordinance shall no longer be designated as a
3forest or fruit-tree reservation on January 1 of the assessment
4year after passage of the ordinance.
53. An application for an exemption pursuant to this chapter
6that has not been processed by January 1 of the assessment
7year after the passage of an ordinance pursuant to subsection
81 shall be disallowed.
94. a. If a county previously passed an ordinance pursuant
10to subsection 1, the board may reinstate exemptions pursuant
11to this chapter by ordinance.
12b. An owner of an area previously designated as a forest or
13fruit-tree reservation shall be required to reapply in order to
14receive a forest or fruit-tree reservation exemption upon the
15passage of an ordinance pursuant to this subsection.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill authorizes county boards of supervisors (boards)
20to determine whether the boards’ respective county permits
21forest and fruit-tree reservation tax exemptions.
22The bill allows a board to discontinue any exemptions for
23establishing a forest or fruit-tree reservation by ordinance.
24The bill removes all designations of areas within a county
25as a forest or fruit-tree reservation on January 1 of the
26assessment year following the passage of an ordinance to
27discontinue forest or fruit-tree reservation exemptions in the
28county.
29The bill disallows any applications which have not yet been
30processed for a forest or fruit-tree reservation exemption upon
31January 1 of the assessment year following the passage of an
32ordinance to discontinue forest and fruit-tree reservation
33exemptions.
34The bill allows a board to reinstate forest and fruit-tree
35reservation exemptions by ordinance. An owner of an area
-4-1previously designated as a forest or fruit-tree reservation
2must reapply in order to receive a forest or fruit-tree
3reservation exemption upon the passage of an ordinance
4reinstating forest and fruit-tree reservation exemptions.
5The bill makes conforming changes.
-5-dg/jh
2whether the county permits forest and fruit-tree reservation
3tax exemptions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427C.1, Code 2024, is amended to read as
2follows:
3427C.1 Tax exemption.
4Any Subject to the provisions of section 427C.14, any person
5who establishes a forest or fruit-tree reservation as provided
6in this chapter shall be entitled to the tax exemption provided
7by law.
8 Sec. 2. Section 427C.2, Code 2024, is amended to read as
9follows:
10427C.2 Reservations.
11On any tract of land in the state of Iowa, the owner or
12owners may select a permanent, subject to section 427C.14,
13 forest reservation or reservations, each not less than two
14acres in continuous area, or a fruit-tree reservation or
15reservations, not less than one nor more than ten acres in
16total area, or both, and upon compliance with the provisions
17of this chapter, such owner or owners shall be entitled to the
18benefits provided by law.
19 Sec. 3. Section 427C.7, Code 2024, is amended to read as
20follows:
21427C.7 Fruit-tree reservation — duration of exemption.
22A fruit-tree reservation shall contain on each acre,
23at least forty apple trees, or seventy other fruit trees,
24growing under proper care and annually pruned and sprayed. A
25reservation may be claimed as a fruit-tree reservation, under
26this chapter, for a period of eight years, subject to section
27427C.14, after planting provided application is made or on file
28on or before February 1 of the exemption year.
29 Sec. 4. Section 427C.12, Code 2024, is amended to read as
30follows:
31427C.12 Application — inspection — continuation of
32exemption — recapture of tax.
331. It shall be the duty of the assessor to secure the facts
34relative to fruit-tree and forest reservations by taking the
35sworn statement, or affirmation, of the owner or owners making
-1-1application under this chapter; and to make special report to
2the county auditor of all reservations made in the county under
3the provisions of this chapter.
42. a. The board of supervisors shall designate the county
5conservation board or the assessor who shall inspect the area
6for which an application is filed for a fruit-tree or forest
7reservation tax exemption before the application is accepted.
8b. Use of aerial photographs may be substituted for on-site
9inspection when appropriate.
10c. The application can only be accepted if it meets the
11criteria established by the natural resource commission to be a
12fruit-tree or forest reservation.
133. Once the application has been accepted, and subject to
14section 427C.14, the area shall continue to receive the tax
15exemption during each year in which the area is maintained as a
16fruit-tree or forest reservation without the owner having to
17refile.
184. If the property is sold or transferred, the seller shall
19notify the buyer that all, or part of, the property is in
20fruit-tree or forest reservation and subject to the recapture
21tax provisions of this section.
225. The tax exemption shall continue to be granted for the
23remainder of the eight-year period for fruit-tree reservation
24and for the following years for forest reservation or until
25the property no longer qualifies as a fruit-tree or forest
26reservation.
276. a. The area may be inspected each year by the county
28conservation board or the assessor to determine if the area is
29maintained as a fruit-tree or forest reservation.
30b. If the area is not maintained or is used for economic
31gain other than as a fruit-tree reservation during any year of
32the eight-year exemption period and any year of the following
33five years or as a forest reservation during any year for which
34the exemption is granted and any of the five years following
35those exemption years, the assessor shall assess the property
-2-1for taxation at its fair market value as of January 1 of that
2year and in addition the area shall be subject to a recapture
3tax. However, the
4c. Thearea shall not be subject to the recapture tax if the
5owner, including one possessing under a contract of sale, and
6the owner’s direct antecedents or descendants have owned the
7area for more than ten years.
87. a. The tax due after a county conservation board or
9assessor determines, pursuant to subsection 6, paragraph “b”,
10that an area is no longer entitled to an exemption shall be
11computed by multiplying the consolidated levy for each of those
12years, if any, of the five preceding years for which the area
13received the exemption for fruit-tree or forest reservation
14times the assessed value of the area that would have been taxed
15but for the tax exemption.
16b. This tax shall be entered against the property on the tax
17list for the current year and shall constitute a lien against
18the property in the same manner as a lien for property taxes.
19c. The tax when collected shall be apportioned in the manner
20provided for the apportionment of the property taxes for the
21applicable tax year.
22 Sec. 5. Section 427C.13, Code 2024, is amended to read as
23follows:
24427C.13 Report to department of natural resources.
25The county assessor shall keep a record of all forest and
26fruit-tree reservations in the county and submit a report of
27the reservations to the department of natural resources not
28later than June 15 of each year. This section shall not apply
29to counties which have an ordinance passed pursuant to section
30427C.14, subsection 1, in effect.
31 Sec. 6. NEW SECTION. 427C.14 Availability of exemptions
32within county.
331. A county board of supervisors may discontinue exemptions
34pursuant to this chapter in the county by ordinance.
352. Areas within a county designated as a forest or
-3-1fruit-tree reservation pursuant to this chapter prior to the
2passage of such an ordinance shall no longer be designated as a
3forest or fruit-tree reservation on January 1 of the assessment
4year after passage of the ordinance.
53. An application for an exemption pursuant to this chapter
6that has not been processed by January 1 of the assessment
7year after the passage of an ordinance pursuant to subsection
81 shall be disallowed.
94. a. If a county previously passed an ordinance pursuant
10to subsection 1, the board may reinstate exemptions pursuant
11to this chapter by ordinance.
12b. An owner of an area previously designated as a forest or
13fruit-tree reservation shall be required to reapply in order to
14receive a forest or fruit-tree reservation exemption upon the
15passage of an ordinance pursuant to this subsection.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill authorizes county boards of supervisors (boards)
20to determine whether the boards’ respective county permits
21forest and fruit-tree reservation tax exemptions.
22The bill allows a board to discontinue any exemptions for
23establishing a forest or fruit-tree reservation by ordinance.
24The bill removes all designations of areas within a county
25as a forest or fruit-tree reservation on January 1 of the
26assessment year following the passage of an ordinance to
27discontinue forest or fruit-tree reservation exemptions in the
28county.
29The bill disallows any applications which have not yet been
30processed for a forest or fruit-tree reservation exemption upon
31January 1 of the assessment year following the passage of an
32ordinance to discontinue forest and fruit-tree reservation
33exemptions.
34The bill allows a board to reinstate forest and fruit-tree
35reservation exemptions by ordinance. An owner of an area
-4-1previously designated as a forest or fruit-tree reservation
2must reapply in order to receive a forest or fruit-tree
3reservation exemption upon the passage of an ordinance
4reinstating forest and fruit-tree reservation exemptions.
5The bill makes conforming changes.
-5-dg/jh