Bill Text: IA SF2069 | 2017-2018 | 87th General Assembly | Introduced
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
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 md/rj 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.OnFor 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 6sizeacreage requirementof 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 ofsections 427C.1 to 427C.13chapter 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