Bill Text: IA SSB3110 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the property tax exemption for forest reservations and fruit-tree reservations and including effective date, applicability, and retroactive applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-02-06 - Subcommittee Meeting: 02/11/2020 2:00PM RM 315. [SSB3110 Detail]
Download: Iowa-2019-SSB3110-Introduced.html
Senate
Study
Bill
3110
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
NATURAL
RESOURCES
AND
ENVIRONMENT
BILL
BY
CHAIRPERSON
ROZENBOOM)
A
BILL
FOR
An
Act
relating
to
the
property
tax
exemption
for
forest
1
reservations
and
fruit-tree
reservations
and
including
2
effective
date,
applicability,
and
retroactive
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
427C.1,
Code
2020,
is
amended
to
read
as
1
follows:
2
427C.1
Tax
exemption
——
amount
of
exemption
.
3
1.
Any
person
who
establishes
a
forest
or
fruit-tree
4
reservation
as
provided
in
this
chapter
shall
be
entitled
to
5
the
tax
exemption
provided
by
law.
6
2.
a.
For
assessment
years
beginning
before
January
1,
7
2021,
the
exemption
for
forest
or
fruit-tree
reservations
8
authorized
in
this
chapter
shall
be
one
hundred
percent
of
the
9
actual
value
of
the
property
comprising
the
reservation.
10
b.
For
assessment
years
beginning
on
or
after
January
1,
11
2021,
the
exemption
for
forest
or
fruit-tree
reservations
12
authorized
in
this
chapter
shall
be
seventy-five
percent
of
the
13
actual
value
of
the
property
comprising
the
reservation.
14
Sec.
2.
Section
427C.2,
Code
2020,
is
amended
to
read
as
15
follows:
16
427C.2
Reservations.
17
1.
On
For
assessment
years
beginning
before
January
1,
2021,
18
on
any
tract
of
land
in
the
state
of
Iowa,
the
owner
or
owners
19
may
select
a
permanent
forest
reservation
or
reservations,
each
20
not
less
than
two
acres
in
continuous
area,
or
a
fruit-tree
21
reservation
or
reservations,
not
less
than
one
nor
more
than
22
ten
acres
in
total
area,
or
both,
and
upon
compliance
with
23
the
provisions
of
this
chapter
,
such
owner
or
owners
shall
be
24
entitled
to
the
benefits
provided
by
law.
25
2.
For
assessment
years
beginning
on
or
after
January
26
1,
2021,
on
any
tract
of
land
in
the
state
of
Iowa,
the
27
owner
or
owners
may
select
a
permanent
forest
reservation
or
28
reservations,
each
not
less
than
ten
acres
in
continuous
area,
29
or
a
fruit-tree
reservation
or
reservations,
not
less
than
30
one
nor
more
than
ten
acres
in
total
area,
or
both,
and
upon
31
compliance
with
the
provisions
of
this
chapter,
such
owner
or
32
owners
shall
be
entitled
to
the
benefits
provided
by
law.
33
Sec.
3.
Section
427C.3,
Code
2020,
is
amended
to
read
as
34
follows:
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427C.3
Forest
reservation
——
duration
of
exemption
.
1
1.
A
forest
reservation
shall
contain
not
less
than
two
2
hundred
growing
forest
trees
on
each
acre.
If
Except
as
3
provided
in
subsection
2,
if
the
area
selected
is
a
forest
4
containing
the
required
number
of
growing
forest
trees,
it
5
shall
be
accepted
as
a
forest
reservation
under
this
chapter
6
for
a
period
of
five
years
provided
application
is
made
or
7
on
file
on
or
before
February
1
of
the
exemption
year.
If
8
any
buildings
are
standing
on
an
area
selected
as
a
forest
9
reservation
under
this
section
or
a
fruit-tree
reservation
10
under
section
427C.7
,
one
acre
of
that
area
shall
be
excluded
11
from
the
tax
exemption.
However,
the
exclusion
of
that
acre
12
shall
not
affect
the
area’s
meeting
the
acreage
requirement
of
13
section
427C.2
.
14
2.
a.
For
forest
reservation
exemption
applications
filed
15
on
or
before
February
1,
2020,
unless
the
reservation
fails
16
to
meet
the
acreage
requirement
of
section
427C.2,
subsection
17
2,
and
is
terminated
under
paragraph
“b”
,
the
period
of
the
18
exemption
ends
at
the
conclusion
of
the
fifth
assessment
year
19
following
the
certification
conducted
by
the
department
of
20
natural
resources
under
427C.13,
subsection
2.
21
b.
For
forest
reservation
exemption
applications
filed
on
22
or
before
February
1,
2020,
if
the
reservation
fails
to
meet
23
the
acreage
requirement
of
section
427C.2,
subsection
2,
the
24
reservation’s
exemption
shall
terminate
beginning
with
the
25
assessment
year
beginning
January
1,
2021.
26
3.
For
forest
reservation
exemption
applications
filed
27
after
February
1,
2020,
in
addition
to
the
other
requirements
28
of
this
chapter,
if
the
department
of
natural
resources
29
determines
that
the
forest
reservation
meets
the
criteria
for
30
depredation
licenses
and
permits,
the
owner
shall
enter
into
a
31
depredation
agreement
with
the
department
of
natural
resources
32
under
section
481C.2A
for
each
of
the
remaining
years
of
the
33
exemption
period
following
determination
by
the
department
and
34
the
depredation
agreement
shall
be
subject
to
section
481C.2A,
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subsection
1,
paragraph
“e”
.
1
Sec.
4.
Section
427C.6,
Code
2020,
is
amended
to
read
as
2
follows:
3
427C.6
Groves.
4
The
trees
of
a
forest
reservation
shall
be
in
groves
not
5
less
than
four
rods
wide
except
when
the
trees
are
growing
or
6
are
planted
in
or
along
a
gully
or
ditch
to
control
erosion
in
7
which
case
any
width
will
qualify
provided
the
area
meets
the
8
size
acreage
requirement
of
two
acres
.
9
Sec.
5.
Section
427C.7,
Code
2020,
is
amended
to
read
as
10
follows:
11
427C.7
Fruit-tree
reservation
——
duration
of
exemption.
12
A
fruit-tree
reservation
shall
contain
on
each
acre,
13
at
least
forty
apple
trees,
or
seventy
other
fruit
trees,
14
growing
under
proper
care
and
annually
pruned
and
sprayed.
15
A
reservation
may
be
claimed
as
a
fruit-tree
reservation,
16
under
this
chapter
,
for
a
period
of
eight
years
after
planting
17
provided
application
is
made
or
on
file
on
or
before
February
18
1
of
the
exemption
year.
If
any
buildings
are
standing
on
an
19
area
selected
as
a
fruit-tree
reservation
under
this
section,
20
one
acre
of
that
area
shall
be
excluded
from
the
tax
exemption.
21
However,
the
exclusion
of
that
acre
shall
not
affect
the
area’s
22
meeting
the
acreage
requirement
of
section
427C.2.
23
Sec.
6.
Section
427C.12,
Code
2020,
is
amended
to
read
as
24
follows:
25
427C.12
Application
——
inspection
——
continuation
of
26
exemption
——
recapture
of
tax.
27
1.
It
shall
be
the
duty
of
the
assessor
to
secure
the
facts
28
relative
to
fruit-tree
and
forest
reservations
by
taking
the
29
sworn
statement,
or
affirmation,
of
the
owner
or
owners
making
30
application
under
this
chapter
;
and
to
make
special
report
to
31
the
county
auditor
of
all
reservations
made
in
the
county
under
32
the
provisions
of
this
chapter
.
33
2.
a.
The
board
of
supervisors
shall
designate
the
county
34
conservation
board
or
the
assessor
who
shall
inspect
the
area
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for
which
an
application
is
filed
for
a
fruit-tree
or
forest
1
reservation
tax
exemption
before
the
application
is
accepted.
2
b.
The
department
of
natural
resources
shall
inspect
the
3
area
for
which
an
application
is
filed
for
a
forest
reservation
4
tax
exemption
before
the
application
is
accepted.
5
c.
Use
of
aerial
photographs
may
be
substituted
for
on-site
6
inspection
when
appropriate.
7
3.
The
application
can
only
be
accepted
if
it
meets
the
8
criteria
established
by
the
natural
resource
commission
to
be
a
9
fruit-tree
or
forest
reservation.
10
4.
Once
the
application
has
been
accepted,
the
area
shall
11
continue
to
receive
the
tax
exemption
during
each
year
of
the
12
exemption
period
under
section
427C.3
or
427C.7
in
which
the
13
area
is
maintained
as
a
fruit-tree
or
forest
or
fruit-tree
14
reservation
without
the
owner
having
to
refile.
If
the
15
property
is
sold
or
transferred,
the
seller
shall
notify
the
16
buyer
that
all,
or
part
of,
the
property
is
in
fruit-tree
or
17
forest
reservation
and
subject
to
the
recapture
tax
provisions
18
of
this
section
.
The
tax
exemption
shall
continue
to
be
19
granted
for
the
remainder
of
the
eight-year
exemption
period
20
for
fruit-tree
reservation
and
for
the
following
years
for
21
forest
reservation
under
section
427C.3
or
427C.7,
or
until
22
the
property
no
longer
qualifies
as
a
fruit-tree
or
forest
or
23
fruit-tree
reservation.
24
5.
a.
The
An
area
that
is
a
fruit-tree
reservation
may
25
be
inspected
each
year
by
the
county
conservation
board
or
26
the
assessor
to
determine
if
the
area
is
maintained
as
a
27
fruit-tree
or
forest
reservation.
An
area
that
is
a
forest
28
reservation
may
be
inspected
each
year
by
the
department
of
29
natural
resources
to
determine
if
the
area
is
maintained
as
30
forest
reservation.
If
the
area
is
not
maintained
or
is
used
31
for
economic
gain
other
than
as
a
fruit-tree
reservation
during
32
any
year
of
the
eight-year
exemption
period
and
any
year
of
33
the
following
five
years
under
section
427C.7
or
as
a
forest
34
reservation
during
any
year
for
which
of
the
exemption
is
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granted
and
any
of
the
five
years
following
those
exemption
1
years
period
under
section
427.3
,
the
assessor
shall
assess
the
2
property
for
taxation
at
its
fair
market
value
as
of
January
3
1
of
that
year
and
in
addition
the
area
shall
be
subject
to
4
a
recapture
tax.
However,
the
area
shall
not
be
subject
to
5
the
recapture
tax
if
the
owner,
including
one
possessing
under
6
a
contract
of
sale,
and
the
owner’s
direct
antecedents
or
7
descendants
have
owned
the
area
for
more
than
ten
years.
8
b.
The
recapture
tax
shall
be
computed
by
multiplying
the
9
consolidated
levy
for
each
of
those
years,
if
any,
of
the
five
10
preceding
years
for
which
the
area
received
the
exemption
for
11
fruit-tree
or
forest
reservation
times
the
assessed
value
of
12
the
area
that
would
have
been
taxed
but
for
the
tax
exemption.
13
This
tax
shall
be
entered
against
the
property
on
the
tax
list
14
for
the
current
year
and
shall
constitute
a
lien
against
the
15
property
in
the
same
manner
as
a
lien
for
property
taxes.
The
16
tax
when
collected
shall
be
apportioned
in
the
manner
provided
17
for
the
apportionment
of
the
property
taxes
for
the
applicable
18
tax
year.
19
Sec.
7.
Section
427C.13,
Code
2020,
is
amended
to
read
as
20
follows:
21
427C.13
Report
to
department
of
natural
resources.
22
1.
The
county
assessor
shall
keep
a
record
of
all
forest
23
and
fruit-tree
reservations
in
the
county
and
submit
a
report
24
of
the
reservations
to
the
department
of
natural
resources
not
25
later
than
June
15
of
each
year.
26
2.
a.
Based
on
the
reports
submitted
under
subsection
1,
27
the
department
of
natural
resources
shall
conduct
an
inspection
28
of
each
forest
reservation
receiving
an
exemption
that
meets
29
the
acreage
requirement
of
section
427C.2,
subsection
2,
and
30
that
was
approved
for
an
assessment
year
beginning
before
31
January
1,
2021.
32
b.
If
the
forest
reservation
meets
the
requirements
for
33
the
exemption,
the
department
shall
certify
the
reservation’s
34
compliance
to
the
county
auditor
of
the
county
where
the
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forest
reservation
is
located
to
be
used
in
determining
the
1
period
of
the
exemption
under
section
427C.3,
subsection
2.
2
If
the
forest
reservation
fails
to
meet
the
requirements
for
3
the
exemption,
the
department
shall
deny
certification
and
4
shall
notify
the
owner
and
the
county
auditor
of
the
county
5
where
the
forest
reservation
is
located
of
the
denial
and
the
6
exemption
shall
cease
beginning
with
the
immediately
succeeding
7
assessment
year.
8
c.
The
certification
or
denial
of
certification
by
the
9
director
of
the
department
of
natural
resources
for
each
of
10
the
forest
reservations
identified
in
paragraph
“a”
shall
be
11
completed
by
July
1,
2025.
12
3.
If,
following
approval
of
the
exemption
for
a
forest
13
reservation,
the
department
of
natural
resources
determines
14
that
the
area
comprising
the
forest
reservation
meets
the
15
criteria
for
depredation
under
chapter
481C,
the
owner
16
shall
enter
into
an
agreement
as
required
by
section
427C.3,
17
subsection
3.
18
Sec.
8.
Section
441.22,
Code
2020,
is
amended
to
read
as
19
follows:
20
441.22
Forest
and
fruit-tree
reservations.
21
Forest
and
fruit-tree
reservations
fulfilling
the
conditions
22
of
sections
427C.1
to
427C.13
chapter
427C
shall
be
exempt
from
23
taxation
to
the
extent
authorized
in
that
chapter
.
In
all
24
other
cases
where
trees
are
planted
upon
any
tract
of
land,
25
without
regard
to
area,
for
forest,
fruit,
shade,
or
ornamental
26
purposes,
or
for
windbreaks,
the
assessor
shall
not
increase
27
the
valuation
of
the
property
because
of
such
improvements.
28
Sec.
9.
Section
481C.2A,
subsection
1,
Code
2020,
is
amended
29
by
adding
the
following
new
paragraph:
30
NEW
PARAGRAPH
.
e.
For
a
depredation
agreement
entered
into
31
for
land
that
is
a
forest
reservation
under
section
427C.3,
the
32
number
of
licenses
issued
each
year
under
this
subsection
to
33
persons
other
than
the
landowner
or
a
family
member
shall
not
34
be
less
than
twenty-five
percent
of
the
total
licenses
issued
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under
this
subsection
for
that
year.
1
Sec.
10.
SAVINGS
PROVISION.
Except
as
provided
in
this
2
Act,
this
Act,
pursuant
to
section
4.13,
does
not
affect
the
3
operation
of,
or
prohibit
the
application
of,
prior
provisions
4
of
chapter
427C
or
section
441.22,
or
rules
adopted
under
5
chapter
17A
to
administer
prior
provisions
of
chapter
427C
6
or
section
441.22,
for
assessment
years
beginning
before
7
January
1,
2021,
and
for
duties,
powers,
protests,
appeals,
8
proceedings,
actions,
or
remedies
attributable
to
an
assessment
9
year
beginning
before
January
1,
2021.
10
Sec.
11.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
11
immediate
importance,
takes
effect
upon
enactment.
12
Sec.
12.
APPLICABILITY.
This
Act
applies
to
assessment
13
years
beginning
on
or
after
January
1,
2021.
14
Sec.
13.
RETROACTIVE
APPLICABILITY.
The
following
apply
15
retroactively
to
February
1,
2020,
for
forest
reservation
16
property
tax
exemption
applications
filed
on
or
after
that
17
date:
18
1.
The
section
of
this
Act
amending
section
427C.3.
19
2.
The
provision
of
this
Act
enacting
section
427C.12,
20
subsection
2,
paragraph
“b”.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
Current
Code
chapter
427C
authorizes
a
property
tax
25
exemption
for
certain
forest
reservations
and
fruit-tree
26
reservations.
To
qualify
for
the
exemption
as
a
forest
27
reservation,
the
property
must
be
at
least
two
acres
in
28
continuous
area
and
meet
certain
tree
density
requirements.
29
The
bill
provides
that
for
assessment
years
beginning
on
or
30
after
January
1,
2021,
the
exemption
for
forest
reservations
31
and
fruit-tree
reservations
is
75
percent
of
the
actual
32
value
of
the
property
comprising
the
forest
or
fruit-tree
33
reservation.
34
Current
law
requires
each
forest
reservation
to
be
not
35
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less
than
two
acres
in
continuous
area.
For
assessment
1
years
beginning
on
or
after
January
1,
2021,
each
forest
2
reservation
must
be
not
less
than
10
acres
in
continuous
area
3
and
the
period
of
the
exemption
is
for
a
period
of
five
years.
4
However,
the
bill
establishes
provisions
to
governing
forest
5
reservation
exemption
applications
filed
on
or
before
February
6
1,
2020.
For
forest
reservation
exemption
applications
filed
7
on
or
before
February
1,
2020,
unless
the
reservation
fails
8
to
meet
the
10-acre
requirement,
the
period
of
the
exemption
9
ends
at
the
conclusion
of
the
fifth
assessment
year
following
10
the
certification
conducted
by
the
department
of
natural
11
resources
as
provided
in
the
bill.
For
forest
reservation
12
exemption
applications
filed
on
or
before
February
1,
2020,
13
if
the
reservation
fails
to
meet
the
10-acre
requirement,
14
the
reservation’s
exemption
terminates
beginning
with
the
15
assessment
year
beginning
January
1,
2021.
16
The
bill
provides
that
for
forest
reservation
exemption
17
applications
filed
after
February
1,
2020,
if,
following
18
approval
of
the
exemption,
the
department
of
natural
resources
19
determines
that
the
forest
reservation
meets
the
criteria
for
20
depredation
under
Code
chapter
481C,
the
owner
must
enter
21
into
a
depredation
agreement
with
the
department
of
natural
22
resources
for
each
of
the
remaining
years
of
the
exemption
23
period.
For
each
such
depredation
agreement,
the
number
of
24
licenses
issued
each
year
to
persons
other
than
the
landowner
25
or
a
family
member
shall
not
be
less
than
25
percent
of
the
26
total
licenses
issued
for
that
year.
27
The
bill
also
requires
the
department
of
natural
resources
28
to
inspect
the
area
for
which
an
application
is
filed
for
a
29
forest
reservation
tax
exemption
before
the
application
is
30
accepted.
Additionally,
an
area
that
is
a
forest
reservation
31
may
be
inspected
each
year
by
the
department
of
natural
32
resources
to
determine
if
the
area
is
maintained
as
forest
33
reservation.
The
bill
also
directs
the
department
of
natural
34
resources
to
conduct
an
inspection
of
each
forest
reservation
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receiving
an
exemption
that
meets
the
10-acre
requirement
that
1
was
approved
for
an
assessment
year
beginning
before
January
2
1,
2021.
If
the
forest
reservation
meets
the
requirements
for
3
the
exemption,
the
department
shall
certify
the
reservation’s
4
compliance
to
the
county
auditor
of
the
county
where
the
5
forest
reservation
is
located
to
be
used
in
determining
the
6
period
of
the
exemption.
If
the
forest
reservation
fails
to
7
meet
the
requirements
for
the
exemption,
the
department
shall
8
deny
certification
and
shall
notify
the
owner
and
the
county
9
auditor
of
the
county
where
the
forest
reservation
is
located
10
of
the
denial
and
the
exemption
shall
cease
beginning
with
the
11
immediately
succeeding
assessment
year.
The
certification
or
12
denial
of
certification
by
the
director
of
the
department
of
13
natural
resources
for
each
of
the
forest
reservations
shall
be
14
completed
by
July
1,
2025.
15
Except
as
provided
in
the
bill
does
not
affect
the
operation
16
of,
or
prohibit
the
application
of,
prior
provisions
of
17
Code
chapter
427C
or
Code
section
441.22,
or
rules
adopted
18
to
administer
prior
provisions
of
Code
chapter
427C
or
19
Code
section
441.22,
for
assessment
years
beginning
before
20
January
1,
2021,
and
for
duties,
powers,
protests,
appeals,
21
proceedings,
actions,
or
remedies
attributable
to
an
assessment
22
year
beginning
before
January
1,
2021.
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