Bill Text: IA HF680 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act eliminating the property tax exemption for forest and fruit-tree reservations.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF680 Detail]
Download: Iowa-2011-HF680-Introduced.html
House
File
680
-
Introduced
HOUSE
FILE
680
BY
HANSON
,
HAGER
,
ABDUL-SAMAD
,
and
MOORE
A
BILL
FOR
An
Act
eliminating
the
property
tax
exemption
for
forest
and
1
fruit-tree
reservations.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
159.6,
subsection
1,
Code
2011,
is
1
amended
to
read
as
follows:
2
1.
a.
Forest
and
fruit-tree
reservations,
chapter
427C
.
3
b.
This
subsection
is
repealed
on
July
1,
2021.
4
Sec.
2.
Section
427C.3,
Code
2011,
is
amended
to
read
as
5
follows:
6
427C.3
Forest
reservation.
7
A
forest
reservation
shall
contain
not
less
than
two
hundred
8
growing
forest
trees
on
each
acre.
If
the
area
selected
is
a
9
forest
containing
the
required
number
of
growing
forest
trees,
10
it
shall
be
accepted
as
a
forest
reservation
under
this
chapter
11
provided
application
is
made
or
on
file
on
or
before
February
12
1
,
of
the
exemption
year
2012
.
If
any
buildings
are
standing
13
on
an
area
selected
as
a
forest
reservation
under
this
section
14
or
a
fruit-tree
reservation
under
section
427C.7
,
one
acre
of
15
that
area
shall
be
excluded
from
the
tax
exemption.
However,
16
the
exclusion
of
that
acre
shall
not
affect
the
area’s
meeting
17
the
acreage
requirement
of
section
427C.2
.
18
Sec.
3.
Section
427C.7,
Code
2011,
is
amended
to
read
as
19
follows:
20
427C.7
Fruit-tree
reservation
——
duration
of
exemption.
21
A
fruit-tree
reservation
shall
contain
on
each
acre,
22
at
least
forty
apple
trees,
or
seventy
other
fruit
trees,
23
growing
under
proper
care
and
annually
pruned
and
sprayed.
24
A
reservation
may
be
claimed
as
a
fruit-tree
reservation,
25
under
this
chapter
,
for
a
period
of
eight
years
after
planting
26
provided
application
is
made
or
on
file
on
or
before
February
27
1
,
of
the
exemption
year
2012
.
28
Sec.
4.
Section
427C.12,
unnumbered
paragraph
2,
Code
2011,
29
is
amended
to
read
as
follows:
30
1.
The
board
of
supervisors
shall
designate
the
county
31
conservation
board
or
the
assessor
who
shall
inspect
the
area
32
for
which
an
application
is
filed
for
a
fruit-tree
or
forest
33
reservation
tax
exemption
before
the
application
is
accepted.
34
Use
of
aerial
photographs
may
be
substituted
for
on-site
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inspection
when
appropriate.
The
application
can
only
be
1
accepted
if
it
meets
the
criteria
established
by
the
natural
2
resource
commission
to
be
a
fruit-tree
or
forest
reservation.
3
The
assessor
shall
not
receive
an
application
for
a
new
4
fruit-tree
reservation
or
forest
reservation
or
a
continuance
5
of
an
existing
fruit-tree
or
forest
reservation
on
or
after
6
February
1,
2012.
Once
the
an
application
has
been
accepted,
7
the
area
shall
continue
to
receive
the
tax
exemption
during
8
each
year
in
which
the
area
is
maintained
as
a
fruit-tree
or
9
forest
reservation
without
the
owner
having
to
refile.
If
10
the
property
area
is
sold
or
transferred,
the
seller
shall
11
notify
the
buyer
that
all,
or
part
of,
the
property
area
is
in
12
fruit-tree
or
forest
reservation
and
subject
to
the
recapture
13
tax
provisions
of
this
section
.
The
tax
exemption
shall
14
continue
to
be
granted
for
the
remainder
of
the
eight-year
15
period
for
fruit-tree
reservation
and
for
the
following
16
years
for
forest
reservation
or
until
the
property
no
longer
17
qualifies
as
a
fruit-tree
or
forest
reservation
each
year
until
18
the
tax
exemption
expires
as
provided
in
this
subsection
.
The
19
area
may
be
inspected
each
year
by
the
county
conservation
20
board
or
the
assessor
to
determine
if
the
area
is
maintained
as
21
a
fruit-tree
or
forest
reservation.
The
area
shall
receive
the
22
tax
exemption
until
the
earlier
of
the
following
dates:
23
a.
The
date
that
the
tax
exemption
granted
to
a
fruit-tree
24
reservation
expires
as
provided
in
section
427C.7.
The
tax
25
exemption
shall
not
be
continued
beyond
that
date.
26
b.
The
date
that
the
area
no
longer
qualifies
as
a
27
fruit-tree
or
forest
reservation
as
provided
in
this
chapter.
28
c.
The
last
date
of
the
tax
year
ending
in
2021.
29
2.
If
the
area
receiving
the
tax
exemption
is
not
maintained
30
or
is
used
for
economic
gain
other
than
as
a
fruit-tree
31
reservation
during
any
year
of
the
eight-year
exemption
32
period
and
any
year
of
the
following
five
years
or
as
a
forest
33
reservation
during
any
year
for
which
the
exemption
is
granted
34
and
any
of
the
five
years
following
those
exemption
years,
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the
assessor
shall
assess
the
property
for
taxation
at
its
1
fair
market
value
as
of
January
1
of
that
year
and
in
addition
2
the
area
shall
be
subject
to
a
recapture
tax.
However,
the
3
area
shall
not
be
subject
to
the
recapture
tax
if
the
owner,
4
including
one
possessing
under
a
contract
of
sale,
and
the
5
owner’s
direct
antecedents
or
descendants
have
owned
the
6
area
for
more
than
ten
years.
The
tax
shall
be
computed
by
7
multiplying
the
consolidated
levy
for
each
of
those
years,
if
8
any,
of
the
five
preceding
years
for
which
the
area
received
9
the
exemption
for
fruit-tree
or
forest
reservation
times
the
10
assessed
value
of
the
area
that
would
have
been
taxed
but
11
for
the
tax
exemption.
This
tax
shall
be
entered
against
12
the
property
on
the
tax
list
for
the
current
year
and
shall
13
constitute
a
lien
against
the
property
in
the
same
manner
as
14
a
lien
for
property
taxes.
The
tax
when
collected
shall
be
15
apportioned
in
the
manner
provided
for
the
apportionment
of
the
16
property
taxes
for
the
applicable
tax
year.
17
3.
Nothing
in
this
section
shall
require
a
person
to
comply
18
with
the
requirements
of
this
chapter
after
the
last
date
of
19
the
person’s
tax
year
ending
in
2021.
20
Sec.
5.
NEW
SECTION
.
427C.14
Repeal.
21
This
chapter
is
repealed
on
July
1,
2021.
22
Sec.
6.
Section
441.22,
Code
2011,
is
amended
to
read
as
23
follows:
24
441.22
Forest
and
fruit-tree
reservations.
25
1.
Forest
and
fruit-tree
reservations
fulfilling
the
26
conditions
of
sections
427C.1
to
427C.13
shall
be
exempt
from
27
taxation.
In
all
other
cases
where
trees
are
planted
upon
28
any
tract
of
land,
without
regard
to
area,
for
forest,
fruit,
29
shade,
or
ornamental
purposes,
or
for
windbreaks,
the
assessor
30
shall
not
increase
the
valuation
of
the
property
because
of
31
such
improvements.
32
2.
This
section
is
repealed
on
July
1,
2021.
33
EXPLANATION
34
This
bill
eliminates
provisions
providing
an
exemption
from
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property
taxes
for
land
established
as
a
forest
or
fruit-tree
1
reservation.
In
order
to
qualify
for
the
tax
exemption,
a
2
forest
reservation
must
have
a
minimum
of
two
acres
with
not
3
less
than
200
trees
per
acre
and
a
fruit-tree
reservation
must
4
have
at
least
10
acres
with
at
least
40
apple
trees
or
70
5
other
fruit
trees.
The
exemption
applies
in
perpetuity
for
6
forest
tree
reservations
(Code
section
427C.2)
and
eight
years
7
for
fruit-tree
reservations
(Code
section
427C.7).
Neither
8
reservation
can
be
used
for
grazing
livestock
or
economic
gain
9
(Code
section
427C.10).
In
order
to
qualify
for
the
exemption,
10
an
application
must
be
filed
with
the
assessor
by
February
1
11
(Code
sections
427C.3
and
427C.7).
The
owner
is
required
to
12
maintain
the
area
as
a
reservation
and
not
use
the
area
for
13
economic
gain
for
five
years
following
the
last
exemption
year
14
(Code
section
427C.12).
15
The
bill
provides
that
an
application
must
be
filed
and
16
accepted
on
or
before
February
1,
2012.
For
a
fruit-tree
17
reservation,
the
tax
exemption
expires
at
the
end
of
its
18
eight-year
term,
and
for
a
forest
tree
reservation,
the
tax
19
exemption
expires
on
the
last
date
of
the
tax
year
ending
in
20
2021.
In
both
cases,
the
tax
credit
expires
earlier
if
the
21
area
is
no
longer
eligible.
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