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Senate File 2069 - IntroducedA Bill ForAn Act 1relating to the property tax exemption for forest
2reservations for certain assessment years.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427C.1, Code 2018, is amended to read as
2follows:
3427C.1 Tax exemption — amount of exemption.
41. Any person who establishes a forest or fruit-tree
5reservation as provided in this chapter shall be entitled to
6the tax exemption provided by law.
72. a. Except as provided in paragraph “b”, the exemption
8for forest or fruit-tree reservations authorized in this
9chapter shall be one hundred percent of the actual value of the
10property comprising the reservation.
11b. For assessment years beginning on or after January 1,
122019, the exemption for forest reservations authorized in this
13chapter shall be fifty percent of the actual value of the
14property comprising the forest reservation.
15 Sec. 2. Section 427C.2, Code 2018, is amended to read as
16follows:
17427C.2 Reservations.
181. On For assessment years beginning before January 1, 2019,
19 any tract of land in the state of Iowa, the owner or owners may
20select a permanent forest reservation or reservations, each
21not less than two acres in continuous area, or a fruit-tree
22reservation or reservations, not less than one nor more than
23ten acres in total area, or both, and upon compliance with
24the provisions of this chapter, such owner or owners shall be
25entitled to the benefits provided by law.
262. For assessment years beginning on or after January
271, 2019, any tract of land in the state of Iowa, the owner
28or owners may select a permanent forest reservation or
29reservations, each not less than five acres in continuous area,
30or a fruit-tree reservation or reservations, not less than
31one nor more than ten acres in total area, or both, and upon
32compliance with the provisions of this chapter, such owner or
33owners shall be entitled to the benefits provided by law.
34 Sec. 3. Section 427C.6, Code 2018, is amended to read as
35follows:
-1- 1427C.6 Groves.
2The trees of a forest reservation shall be in groves not
3less than four rods wide except when the trees are growing or
4are planted in or along a gully or ditch to control erosion in
5which case any width will qualify provided the area meets the
6size acreage requirement of two acres.
7 Sec. 4. Section 441.22, Code 2018, is amended to read as
8follows:
9441.22 Forest and fruit-tree reservations.
10Forest and fruit-tree reservations fulfilling the conditions
11of sections 427C.1 to 427C.13 chapter 427C shall be exempt from
12taxation to the extent authorized in that chapter. In all
13other cases where trees are planted upon any tract of land,
14without regard to area, for forest, fruit, shade, or ornamental
15purposes, or for windbreaks, the assessor shall not increase
16the valuation of the property because of such improvements.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20Current Code chapter 427C authorizes a property tax
21exemption for certain forest reservations and fruit-tree
22reservations. To qualify for the exemption as a forest
23reservation, the property must be at least two acres in
24continuous area and meet certain tree density requirements.
25This bill lowers the exemption percentage from 100 percent
26to 50 percent for forest reservations for assessment years
27beginning on or after January 1, 2019. The bill also increases
28the minimum acreage requirement for forest reservations for
29assessment years beginning on or after January 1, 2019, from
30two acres to five acres of continuous area.
-2-md/rj
2reservations for certain assessment years.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427C.1, Code 2018, is amended to read as
2follows:
3427C.1 Tax exemption — amount of exemption.
41. Any person who establishes a forest or fruit-tree
5reservation as provided in this chapter shall be entitled to
6the tax exemption provided by law.
72. a. Except as provided in paragraph “b”, the exemption
8for forest or fruit-tree reservations authorized in this
9chapter shall be one hundred percent of the actual value of the
10property comprising the reservation.
11b. For assessment years beginning on or after January 1,
122019, the exemption for forest reservations authorized in this
13chapter shall be fifty percent of the actual value of the
14property comprising the forest reservation.
15 Sec. 2. Section 427C.2, Code 2018, is amended to read as
16follows:
17427C.2 Reservations.
181. On For assessment years beginning before January 1, 2019,
19 any tract of land in the state of Iowa, the owner or owners may
20select a permanent forest reservation or reservations, each
21not less than two acres in continuous area, or a fruit-tree
22reservation or reservations, not less than one nor more than
23ten acres in total area, or both, and upon compliance with
24the provisions of this chapter, such owner or owners shall be
25entitled to the benefits provided by law.
262. For assessment years beginning on or after January
271, 2019, any tract of land in the state of Iowa, the owner
28or owners may select a permanent forest reservation or
29reservations, each not less than five acres in continuous area,
30or a fruit-tree reservation or reservations, not less than
31one nor more than ten acres in total area, or both, and upon
32compliance with the provisions of this chapter, such owner or
33owners shall be entitled to the benefits provided by law.
34 Sec. 3. Section 427C.6, Code 2018, is amended to read as
35follows:
-1- 1427C.6 Groves.
2The trees of a forest reservation shall be in groves not
3less than four rods wide except when the trees are growing or
4are planted in or along a gully or ditch to control erosion in
5which case any width will qualify provided the area meets the
6size acreage requirement of two acres.
7 Sec. 4. Section 441.22, Code 2018, is amended to read as
8follows:
9441.22 Forest and fruit-tree reservations.
10Forest and fruit-tree reservations fulfilling the conditions
11of sections 427C.1 to 427C.13 chapter 427C shall be exempt from
12taxation to the extent authorized in that chapter. In all
13other cases where trees are planted upon any tract of land,
14without regard to area, for forest, fruit, shade, or ornamental
15purposes, or for windbreaks, the assessor shall not increase
16the valuation of the property because of such improvements.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20Current Code chapter 427C authorizes a property tax
21exemption for certain forest reservations and fruit-tree
22reservations. To qualify for the exemption as a forest
23reservation, the property must be at least two acres in
24continuous area and meet certain tree density requirements.
25This bill lowers the exemption percentage from 100 percent
26to 50 percent for forest reservations for assessment years
27beginning on or after January 1, 2019. The bill also increases
28the minimum acreage requirement for forest reservations for
29assessment years beginning on or after January 1, 2019, from
30two acres to five acres of continuous area.
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