Bill Text: IA SF2069 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to the property tax exemption for forest reservations for certain assessment years.

Spectrum: Partisan Bill (Republican 10-0)

Status: (Introduced - Dead) 2018-02-13 - Fiscal note. [SF2069 Detail]

Download: Iowa-2017-SF2069-Introduced.html

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Senate File 2069 - Introduced




                                 SENATE FILE       
                                 BY  SINCLAIR, ROZENBOOM,
                                     BROWN, SHIPLEY,
                                     SCHULTZ, EDLER,
                                     CHELGREN, ZUMBACH,
                                     SEGEBART, and COSTELLO

                                      A BILL FOR

  1 An Act relating to the property tax exemption for forest
  2    reservations for certain assessment years.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5019XS (3) 87
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PAG LIN



  1  1    Section 1.  Section 427C.1, Code 2018, is amended to read as
  1  2 follows:
  1  3    427C.1  Tax exemption == amount of exemption.
  1  4    1.  Any person who establishes a forest or fruit=tree
  1  5 reservation as provided in this chapter shall be entitled to
  1  6 the tax exemption provided by law.
  1  7    2.  a.  Except as provided in paragraph "b", the exemption
  1  8 for forest or fruit=tree reservations authorized in this
  1  9 chapter shall be one hundred percent of the actual value of the
  1 10 property comprising the reservation.
  1 11    b.  For assessment years beginning on or after January 1,
  1 12 2019, the exemption for forest reservations authorized in this
  1 13 chapter shall be fifty percent of the actual value of the
  1 14 property comprising the forest reservation.
  1 15    Sec. 2.  Section 427C.2, Code 2018, is amended to read as
  1 16 follows:
  1 17    427C.2  Reservations.
  1 18    1.  On For assessment years beginning before January 1, 2019,
  1 19  any tract of land in the state of Iowa, the owner or owners may
  1 20 select a permanent forest reservation or reservations, each
  1 21 not less than two acres in continuous area, or a fruit=tree
  1 22 reservation or reservations, not less than one nor more than
  1 23 ten acres in total area, or both, and upon compliance with
  1 24 the provisions of this chapter, such owner or owners shall be
  1 25 entitled to the benefits provided by law.
  1 26    2.  For assessment years beginning on or after January
  1 27 1, 2019, any tract of land in the state of Iowa, the owner
  1 28 or owners may select a permanent forest reservation or
  1 29 reservations, each not less than five acres in continuous area,
  1 30 or a fruit=tree reservation or reservations, not less than
  1 31 one nor more than ten acres in total area, or both, and upon
  1 32 compliance with the provisions of this chapter, such owner or
  1 33 owners shall be entitled to the benefits provided by law.
  1 34    Sec. 3.  Section 427C.6, Code 2018, is amended to read as
  1 35 follows:
  2  1    427C.6  Groves.
  2  2    The trees of a forest reservation shall be in groves not
  2  3 less than four rods wide except when the trees are growing or
  2  4 are planted in or along a gully or ditch to control erosion in
  2  5 which case any width will qualify provided the area meets the
  2  6 size acreage requirement of two acres.
  2  7    Sec. 4.  Section 441.22, Code 2018, is amended to read as
  2  8 follows:
  2  9    441.22  Forest and fruit=tree reservations.
  2 10    Forest and fruit=tree reservations fulfilling the conditions
  2 11 of sections 427C.1 to 427C.13 chapter 427C shall be exempt from
  2 12 taxation to the extent authorized in that chapter. In all
  2 13 other cases where trees are planted upon any tract of land,
  2 14 without regard to area, for forest, fruit, shade, or ornamental
  2 15 purposes, or for windbreaks, the assessor shall not increase
  2 16 the valuation of the property because of such improvements.
  2 17                           EXPLANATION
  2 18 The inclusion of this explanation does not constitute agreement with
  2 19 the explanation's substance by the members of the general assembly.
  2 20    Current Code chapter 427C authorizes a property tax
  2 21 exemption for certain forest reservations and fruit=tree
  2 22 reservations. To qualify for the exemption as a forest
  2 23 reservation, the property must be at least two acres in
  2 24 continuous area and meet certain tree density requirements.
  2 25    This bill lowers the exemption percentage from 100 percent
  2 26 to 50 percent for forest reservations for assessment years
  2 27 beginning on or after January 1, 2019.  The bill also increases
  2 28 the minimum acreage requirement for forest reservations for
  2 29 assessment years beginning on or after January 1, 2019, from
  2 30 two acres to five acres of continuous area.
       LSB 5019XS (3) 87
       md/rj