Bill Text: IA HF2672 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to forest and fruit-tree reservation tax exemptions, including county participation and minimum size requirements for forest reservations.(Formerly HF 2093.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2024-04-19 - Amendment S-5207 filed. S.J. 957. [HF2672 Detail]
Download: Iowa-2023-HF2672-Introduced.html
House
File
2672
-
Introduced
HOUSE
FILE
2672
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2093)
A
BILL
FOR
An
Act
relating
to
forest
and
fruit-tree
reservation
tax
1
exemptions,
including
county
participation
and
minimum
size
2
requirements
for
forest
reservations.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
427C.1,
Code
2024,
is
amended
to
read
as
1
follows:
2
427C.1
Tax
exemption.
3
Any
Subject
to
the
provisions
of
section
427C.14,
any
person
4
who
establishes
a
forest
or
fruit-tree
reservation
as
provided
5
in
this
chapter
shall
be
entitled
to
the
tax
exemption
provided
6
by
law.
7
Sec.
2.
Section
427C.2,
Code
2024,
is
amended
to
read
as
8
follows:
9
427C.2
Reservations.
10
On
any
tract
of
land
in
the
state
of
Iowa,
the
owner
or
11
owners
may
select
a
permanent
,
subject
to
section
427C.14,
12
forest
reservation
or
reservations,
each
not
less
than
two
13
five
acres
in
continuous
area,
or
a
fruit-tree
reservation
or
14
reservations,
not
less
than
one
nor
more
than
ten
acres
in
15
total
area,
or
both,
and
upon
compliance
with
the
provisions
16
of
this
chapter
,
such
owner
or
owners
shall
be
entitled
to
the
17
benefits
provided
by
law.
18
Sec.
3.
Section
427C.6,
Code
2024,
is
amended
to
read
as
19
follows:
20
427C.6
Groves.
21
The
trees
of
a
forest
reservation
shall
be
in
groves
not
22
less
than
four
rods
wide
except
when
the
trees
are
growing
or
23
are
planted
in
or
along
a
gully
or
ditch
to
control
erosion
in
24
which
case
any
width
will
qualify
provided
the
area
meets
the
25
size
requirement
of
two
five
acres.
26
Sec.
4.
Section
427C.7,
Code
2024,
is
amended
to
read
as
27
follows:
28
427C.7
Fruit-tree
reservation
——
duration
of
exemption.
29
A
fruit-tree
reservation
shall
contain
on
each
acre,
30
at
least
forty
apple
trees,
or
seventy
other
fruit
trees,
31
growing
under
proper
care
and
annually
pruned
and
sprayed.
A
32
reservation
may
be
claimed
as
a
fruit-tree
reservation,
under
33
this
chapter
,
for
a
period
of
eight
years
,
subject
to
section
34
427C.14,
after
planting
provided
application
is
made
or
on
file
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on
or
before
February
1
of
the
exemption
year.
1
Sec.
5.
Section
427C.12,
Code
2024,
is
amended
to
read
as
2
follows:
3
427C.12
Application
——
inspection
——
continuation
of
4
exemption
——
recapture
of
tax.
5
1.
It
shall
be
the
duty
of
the
assessor
to
secure
the
facts
6
relative
to
fruit-tree
and
forest
reservations
by
taking
the
7
sworn
statement,
or
affirmation,
of
the
owner
or
owners
making
8
application
under
this
chapter
;
and
to
make
special
report
to
9
the
county
auditor
of
all
reservations
made
in
the
county
under
10
the
provisions
of
this
chapter
.
11
2.
a.
The
board
of
supervisors
shall
designate
the
county
12
conservation
board
or
the
assessor
who
shall
inspect
the
area
13
for
which
an
application
is
filed
for
a
fruit-tree
or
forest
14
reservation
tax
exemption
before
the
application
is
accepted.
15
b.
Use
of
aerial
photographs
may
be
substituted
for
on-site
16
inspection
when
appropriate.
17
c.
The
application
can
only
be
accepted
if
it
meets
the
18
criteria
established
by
the
natural
resource
commission
to
be
a
19
fruit-tree
or
forest
reservation.
20
3.
Once
the
application
has
been
accepted,
and
subject
to
21
section
427C.14,
the
area
shall
continue
to
receive
the
tax
22
exemption
during
each
year
in
which
the
area
is
maintained
as
a
23
fruit-tree
or
forest
reservation
without
the
owner
having
to
24
refile.
25
4.
If
the
property
is
sold
or
transferred,
the
seller
shall
26
notify
the
buyer
that
all,
or
part
of,
the
property
is
in
27
fruit-tree
or
forest
reservation
and
subject
to
the
recapture
28
tax
provisions
of
this
section
.
29
5.
The
tax
exemption
shall
continue
to
be
granted
for
the
30
remainder
of
the
eight-year
period
for
fruit-tree
reservation
31
and
for
the
following
years
for
forest
reservation
or
until
32
the
property
no
longer
qualifies
as
a
fruit-tree
or
forest
33
reservation.
34
6.
a.
The
area
may
be
inspected
each
year
by
the
county
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conservation
board
or
the
assessor
to
determine
if
the
area
is
1
maintained
as
a
fruit-tree
or
forest
reservation.
2
b.
If
the
area
is
not
maintained
,
no
longer
meets
the
3
requirements
applicable
to
the
type
of
exemption
granted
4
for
the
area,
or
is
used
for
economic
gain
other
than
as
a
5
fruit-tree
reservation
during
any
year
of
the
eight-year
6
exemption
period
and
any
year
of
the
following
five
years
or
as
7
a
forest
reservation
during
any
year
for
which
the
exemption
8
is
granted
and
any
of
the
five
years
following
those
exemption
9
years,
the
assessor
shall
assess
the
property
for
taxation
10
at
its
fair
market
value
as
of
January
1
of
that
year
and
11
in
addition
the
area
shall
be
subject
to
a
recapture
tax.
12
However,
the
13
c.
The
area
shall
not
be
subject
to
the
recapture
tax
if
the
14
owner,
including
one
possessing
under
a
contract
of
sale,
and
15
the
owner’s
direct
antecedents
or
descendants
have
owned
the
16
area
for
more
than
ten
years.
17
7.
a.
The
tax
due
after
a
county
conservation
board
or
18
assessor
determines,
pursuant
to
subsection
6,
paragraph
“b”
,
19
that
an
area
is
no
longer
entitled
to
an
exemption
shall
be
20
computed
by
multiplying
the
consolidated
levy
for
each
of
those
21
years,
if
any,
of
the
five
preceding
years
for
which
the
area
22
received
the
exemption
for
fruit-tree
or
forest
reservation
23
times
the
assessed
value
of
the
area
that
would
have
been
taxed
24
but
for
the
tax
exemption.
25
b.
This
tax
shall
be
entered
against
the
property
on
the
tax
26
list
for
the
current
year
and
shall
constitute
a
lien
against
27
the
property
in
the
same
manner
as
a
lien
for
property
taxes.
28
c.
The
tax
when
collected
shall
be
apportioned
in
the
manner
29
provided
for
the
apportionment
of
the
property
taxes
for
the
30
applicable
tax
year.
31
Sec.
6.
Section
427C.13,
Code
2024,
is
amended
to
read
as
32
follows:
33
427C.13
Report
to
department
of
natural
resources.
34
The
county
assessor
shall
keep
a
record
of
all
forest
and
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fruit-tree
reservations
in
the
county
and
submit
a
report
of
1
the
reservations
to
the
department
of
natural
resources
not
2
later
than
June
15
of
each
year.
This
section
shall
not
apply
3
to
counties
which
have
an
ordinance
passed
pursuant
to
section
4
427C.14,
subsection
1,
in
effect.
5
Sec.
7.
NEW
SECTION
.
427C.14
Availability
of
exemptions
6
within
county.
7
1.
A
county
board
of
supervisors
may
discontinue
exemptions
8
pursuant
to
this
chapter
in
the
county
by
ordinance.
9
2.
Areas
within
a
county
designated
as
a
forest
or
10
fruit-tree
reservation
pursuant
to
this
chapter
prior
to
the
11
passage
of
such
an
ordinance
shall
no
longer
be
designated
as
a
12
forest
or
fruit-tree
reservation
on
January
1
of
the
assessment
13
year
after
passage
of
the
ordinance.
14
3.
An
application
for
an
exemption
pursuant
to
this
chapter
15
that
has
not
been
processed
by
January
1
of
the
assessment
16
year
after
the
passage
of
an
ordinance
pursuant
to
subsection
17
1
shall
be
disallowed.
18
4.
a.
If
a
county
previously
passed
an
ordinance
pursuant
19
to
subsection
1,
the
board
may
reinstate
exemptions
pursuant
20
to
this
chapter
by
ordinance.
21
b.
An
owner
of
an
area
previously
designated
as
a
forest
or
22
fruit-tree
reservation
shall
be
required
to
reapply
in
order
to
23
receive
a
forest
or
fruit-tree
reservation
exemption
upon
the
24
passage
of
an
ordinance
pursuant
to
this
subsection.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
Current
Code
chapter
427C
authorizes
a
property
tax
29
exemption
for
certain
forest
reservations
and
fruit-tree
30
reservations.
This
bill
sets
a
new
minimum
required
acreage
31
for
forest
reservations
and
authorizes
county
boards
of
32
supervisors
(boards)
to
determine
whether
the
boards’
33
respective
county
permits
forest
and
fruit-tree
reservation
tax
34
exemptions.
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Under
current
law,
a
forest
reservation
must
be
not
less
than
1
two
acres
in
continuous
area
to
receive
an
exemption.
The
bill
2
increases
this
minimum
size
to
five
acres.
3
The
bill
allows
a
board
to
discontinue
any
exemptions
for
4
establishing
a
forest
or
fruit-tree
reservation
by
ordinance.
5
The
bill
removes
all
designations
of
areas
within
a
county
as
a
6
forest
or
fruit-tree
reservation
on
January
1
of
the
assessment
7
year
following
the
passage
of
an
ordinance
to
discontinue
the
8
exemptions
in
the
county.
Any
applications
which
have
not
9
yet
been
processed
for
a
forest
or
fruit-tree
reservation
10
exemption
upon
January
1
of
the
assessment
year
following
11
the
passage
of
an
ordinance
to
discontinue
the
exemptions
12
are
disallowed.
A
board
may
reinstate
forest
and
fruit-tree
13
reservation
exemptions
by
ordinance.
An
owner
of
an
area
14
previously
designated
as
a
forest
or
fruit-tree
reservation
15
must
reapply
in
order
to
receive
the
exemption
upon
the
passage
16
of
an
ordinance
reinstating
the
exemptions.
17
The
bill
allows
county
assessors
to
assess
land
designated
18
as
a
forest
or
fruit-tree
reservation
at
the
land’s
fair
market
19
value
as
of
January
1
of
any
year
in
which
the
land
no
longer
20
meets
the
requirements
applicable
to
the
type
of
exemption
21
granted
to
the
land.
22
The
bill
makes
conforming
changes.
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