Bill Text: IA SF5 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act repealing the property tax exemption for forest reservations and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-29 - Subcommittee reassigned: Segebart, Hogg, and Rozenboom. [SF5 Detail]
Download: Iowa-2019-SF5-Introduced.html
Senate
File
5
-
Introduced
SENATE
FILE
5
BY
SINCLAIR
A
BILL
FOR
An
Act
repealing
the
property
tax
exemption
for
forest
1
reservations
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1050XS
(4)
88
md/jh
S.F.
5
Section
1.
Section
427C.1,
Code
2019,
is
amended
to
read
as
1
follows:
2
427C.1
Tax
exemption.
3
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
Sec.
2.
Section
427C.2,
Code
2019,
is
amended
to
read
as
7
follows:
8
427C.2
Reservations.
9
On
any
tract
of
land
in
the
state
of
Iowa,
the
owner
10
or
owners
may
select
a
permanent
forest
reservation
or
11
reservations,
each
not
less
than
two
acres
in
continuous
area,
12
or
a
fruit-tree
reservation
or
reservations,
not
less
than
13
one
nor
more
than
ten
acres
in
total
area,
or
both,
and
upon
14
compliance
with
the
provisions
of
this
chapter
,
such
owner
or
15
owners
shall
be
entitled
to
the
benefits
provided
by
law.
16
Sec.
3.
Section
427C.3,
Code
2019,
is
amended
to
read
as
17
follows:
18
427C.3
Forest
reservation
Buildings
——
acre
exclusion
.
19
A
forest
reservation
shall
contain
not
less
than
two
hundred
20
growing
forest
trees
on
each
acre.
If
the
area
selected
is
a
21
forest
containing
the
required
number
of
growing
forest
trees,
22
it
shall
be
accepted
as
a
forest
reservation
under
this
chapter
23
provided
application
is
made
or
on
file
on
or
before
February
24
1
of
the
exemption
year.
If
any
buildings
are
standing
on
an
25
area
selected
as
a
forest
reservation
under
this
section
or
a
26
fruit-tree
reservation
under
section
427C.7
,
one
acre
of
that
27
area
shall
be
excluded
from
the
tax
exemption.
However,
the
28
exclusion
of
that
acre
shall
not
affect
the
area’s
meeting
the
29
acreage
requirement
of
section
427C.2
.
30
Sec.
4.
Section
427C.9,
Code
2019,
is
amended
to
read
as
31
follows:
32
427C.9
Replacing
trees.
33
When
any
tree
or
trees
on
a
fruit-tree
or
forest
reservation
34
shall
be
removed
or
die,
the
owner
or
owners
of
such
35
-1-
LSB
1050XS
(4)
88
md/jh
1/
5
S.F.
5
reservation
shall,
within
one
year,
plant
and
care
for
other
1
fruit
or
forest
trees,
in
order
that
the
number
of
such
trees
2
may
not
fall
below
that
required
by
this
chapter
.
3
Sec.
5.
Section
427C.10,
Code
2019,
is
amended
to
read
as
4
follows:
5
427C.10
Restraint
of
livestock
and
limitation
on
use.
6
Cattle,
horses,
mules,
sheep,
goats,
ostriches,
rheas,
emus,
7
and
swine
shall
not
be
permitted
upon
a
fruit-tree
or
forest
8
reservation.
Fruit-tree
and
forest
reservations
shall
not
be
9
used
for
economic
gain
other
than
the
gain
from
raising
fruit
10
or
forest
trees
.
11
Sec.
6.
Section
427C.11,
Code
2019,
is
amended
to
read
as
12
follows:
13
427C.11
Penalty.
14
If
the
owner
or
owners
of
a
fruit-tree
or
forest
reservation
15
violate
any
provision
of
this
chapter
within
the
two
years
16
preceding
the
making
of
an
assessment,
the
assessor
shall
17
not
list
any
tract
belonging
to
such
owner
or
owners,
as
a
18
reservation
within
the
meaning
of
this
chapter
,
for
the
ensuing
19
two
years.
20
Sec.
7.
Section
427C.12,
Code
2019,
is
amended
to
read
as
21
follows:
22
427C.12
Application
——
inspection
——
continuation
of
23
exemption
——
recapture
of
tax.
24
1.
It
shall
be
the
duty
of
the
assessor
to
secure
the
facts
25
relative
to
fruit-tree
and
forest
reservations
by
taking
the
26
sworn
statement,
or
affirmation,
of
the
owner
or
owners
making
27
application
under
this
chapter
;
and
to
make
special
report
to
28
the
county
auditor
of
all
reservations
made
in
the
county
under
29
the
provisions
of
this
chapter
.
30
2.
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
35
-2-
LSB
1050XS
(4)
88
md/jh
2/
5
S.F.
5
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
Once
the
application
has
been
accepted,
the
area
shall
continue
4
to
receive
the
tax
exemption
during
each
year
in
which
the
5
area
is
maintained
as
a
fruit-tree
or
forest
reservation
6
without
the
owner
having
to
refile.
If
the
property
is
7
sold
or
transferred,
the
seller
shall
notify
the
buyer
that
8
all,
or
part
of,
the
property
is
in
fruit-tree
or
forest
9
reservation
and
subject
to
the
recapture
tax
provisions
of
10
this
section
.
The
tax
exemption
shall
continue
to
be
granted
11
for
the
remainder
of
the
eight-year
period
for
fruit-tree
12
reservation
and
for
the
following
years
for
forest
reservation
13
or
until
the
property
no
longer
qualifies
as
a
fruit-tree
or
14
forest
reservation.
The
area
may
be
inspected
each
year
by
15
the
county
conservation
board
or
the
assessor
to
determine
if
16
the
area
is
maintained
as
a
fruit-tree
or
forest
reservation.
17
If
the
area
is
not
maintained
or
is
used
for
economic
gain
18
other
than
as
a
fruit-tree
reservation
during
any
year
of
the
19
eight-year
exemption
period
and
any
year
of
the
following
five
20
years
or
as
a
forest
reservation
during
any
year
for
which
21
the
exemption
is
granted
and
any
of
the
five
years
following
22
those
exemption
years
,
the
assessor
shall
assess
the
property
23
for
taxation
at
its
fair
market
value
as
of
January
1
of
that
24
year
and
in
addition
the
area
shall
be
subject
to
a
recapture
25
tax.
However,
the
area
shall
not
be
subject
to
the
recapture
26
tax
if
the
owner,
including
one
possessing
under
a
contract
27
of
sale,
and
the
owner’s
direct
antecedents
or
descendants
28
have
owned
the
area
for
more
than
ten
years.
The
tax
shall
be
29
computed
by
multiplying
the
consolidated
levy
for
each
of
those
30
years,
if
any,
of
the
five
preceding
years
for
which
the
area
31
received
the
exemption
for
fruit-tree
or
forest
reservation
32
times
the
assessed
value
of
the
area
that
would
have
been
taxed
33
but
for
the
tax
exemption.
This
tax
shall
be
entered
against
34
the
property
on
the
tax
list
for
the
current
year
and
shall
35
-3-
LSB
1050XS
(4)
88
md/jh
3/
5
S.F.
5
constitute
a
lien
against
the
property
in
the
same
manner
as
1
a
lien
for
property
taxes.
The
tax
when
collected
shall
be
2
apportioned
in
the
manner
provided
for
the
apportionment
of
the
3
property
taxes
for
the
applicable
tax
year.
4
Sec.
8.
Section
427C.13,
Code
2019,
is
amended
to
read
as
5
follows:
6
427C.13
Report
to
department
of
natural
resources.
7
The
county
assessor
shall
keep
a
record
of
all
forest
and
8
fruit-tree
reservations
in
the
county
and
submit
a
report
of
9
the
reservations
to
the
department
of
natural
resources
not
10
later
than
June
15
of
each
year.
11
Sec.
9.
Section
441.22,
Code
2019,
is
amended
to
read
as
12
follows:
13
441.22
Forest
and
fruit-tree
Fruit-tree
reservations.
14
Forest
and
fruit-tree
Fruit-tree
reservations
fulfilling
15
the
conditions
of
sections
427C.1
to
427C.13
shall
be
exempt
16
from
taxation.
In
all
other
cases
where
trees
are
planted
upon
17
any
tract
of
land,
without
regard
to
area,
for
forest,
fruit,
18
shade,
or
ornamental
purposes,
or
for
windbreaks,
the
assessor
19
shall
not
increase
the
valuation
of
the
property
because
of
20
such
improvements.
21
Sec.
10.
REPEAL.
Sections
427C.4,
427C.5,
and
427C.6,
Code
22
2019,
are
repealed.
23
Sec.
11.
SAVINGS
PROVISION.
This
Act,
pursuant
to
section
24
4.13,
does
not
affect
the
operation
of,
or
prohibit
the
25
application
of,
prior
provisions
of
chapter
427C
or
section
26
441.22,
or
rules
adopted
under
chapter
17A
to
administer
prior
27
provisions
of
chapter
427C
or
section
441.22,
for
assessment
28
years
beginning
before
January
1,
2020,
and
for
duties,
29
powers,
protests,
appeals,
proceedings,
actions,
or
remedies
30
attributable
to
an
assessment
year
beginning
before
January
1,
31
2020.
32
Sec.
12.
APPLICABILITY.
This
Act
applies
to
assessment
33
years
beginning
on
or
after
January
1,
2020.
34
EXPLANATION
35
-4-
LSB
1050XS
(4)
88
md/jh
4/
5
S.F.
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
Current
Code
chapter
427C
authorizes
a
property
tax
3
exemption
for
certain
forest
reservations
and
fruit-tree
4
reservations.
To
qualify
for
the
exemption
as
a
forest
5
reservation,
the
property
must
be
at
least
two
acres
in
6
continuous
area
and
meet
certain
tree
density
requirements.
7
This
bill
repeals
the
exemption
for
forest
reservations
for
8
assessment
years
beginning
on
or
after
January
1,
2020.
9
The
bill
does
not
affect
the
operation
of,
or
prohibit
the
10
application
of,
prior
provisions
of
Code
chapter
427C
or
Code
11
section
441.22,
or
rules
adopted
to
administer
prior
provisions
12
of
Code
chapter
427C
or
Code
section
441.22,
for
assessment
13
years
beginning
before
January
1,
2020,
and
for
duties,
14
powers,
protests,
appeals,
proceedings,
actions,
or
remedies
15
attributable
to
an
assessment
year
beginning
before
January
1,
16
2020.
17
-5-
LSB
1050XS
(4)
88
md/jh
5/
5
