| 1 | 1 | | House File 142 - Introduced HOUSE FILE 142 BY WILLS A BILL FOR An Act creating conservation area designations subject to 1 modified property tax levy rates and eliminating the forest 2 and fruit-tree reservation property tax exemption program. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1465YH (3) 91 jm/md |
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| 3 | 3 | | H.F. 142 DIVISION I 1 CONSERVATION AREAS 2 Section 1. NEW SECTION . 427D.1 Conservation area 3 designation taxation. 4 1. For assessment years beginning on or after January 1, 5 2026, any person who receives a conservation area designation 6 as provided in this chapter shall be taxed at the following 7 levy rates: 8 a. For a commercial conservation area, twelve dollars per 9 commercial conservation acre. 10 b. For any other conservation area, eight dollars per acre. 11 2. The revenue generated from the levy pursuant to this 12 section shall be apportioned by the county treasurer among 13 the several taxing districts in which the area is located 14 in proportion to each taxing districts portion of the 15 consolidated levy rate that would otherwise be applicable to 16 the area but for the designation under this chapter. 17 Sec. 2. NEW SECTION . 427D.2 Conservation area. 18 On any tract of land in the state of Iowa, the owner or 19 owners may apply for a conservation area designation. The 20 conservation area shall encompass not less than five acres in 21 continuous area. Upon compliance with the provisions of this 22 chapter, such owner or owners shall be entitled to the benefits 23 of this chapter. 24 Sec. 3. NEW SECTION . 427D.3 Commercial conservation area. 25 1. In addition to the other requirements of a conservation 26 area under this chapter, a commercial conservation area must be 27 used primarily for one or more of the following: 28 a. Fruit production. 29 b. Pasture land, if the pasture land is managed with a 30 certified management plan from the United States department of 31 agriculture or the United States natural resource conservation 32 service, and has a minimum stubble height of four inches to 33 improve habitat. 34 c. Hunting or fishing pursuant to a lease agreement. 35 -1- LSB 1465YH (3) 91 jm/md 1/ 5 |
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| 5 | 5 | | H.F. 142 Sec. 4. NEW SECTION . 427D.4 Conservation area forests. 1 A conservation area that does not satisfy the requirements 2 for a commercial conservation area, but is comprised of 3 forested land, which is compliant with a forest improvement 4 plan, shall be designated as a conservation area. 5 Sec. 5. NEW SECTION . 427D.5 Penalty. 6 If the owner or owners violate any provision of this chapter, 7 the land shall lose the conservation area designation and 8 any tax shall be subject to recapture as provided in section 9 427D.6. 10 Sec. 6. NEW SECTION . 427D.6 Application inspection 11 continuation of exemption recapture of tax. 12 1. It shall be the duty of the assessor to secure the 13 facts relative to a proposed conservation area by taking the 14 sworn statement, or affirmation, of the owner or owners making 15 application under this chapter; and to make a report to the 16 county auditor of all conservation areas made in the county 17 under the provisions of this chapter. 18 2. The board of supervisors shall designate the county 19 conservation board or the assessor who shall inspect the 20 area for which an application is filed for conservation area 21 designations before the application is approved. Use of aerial 22 photographs may be substituted for on-site inspection when 23 appropriate. The application can only be approved if it meets 24 the criteria established by the natural resource commission 25 to be a conservation area. Once the application has been 26 approved, the area shall continue to be taxed as a conservation 27 area under this chapter during each year in which the area is 28 maintained as a conservation area without the owner having to 29 refile. If the property is sold or transferred, the seller 30 shall notify the buyer that all, or part of, the property is a 31 conservation area and subject to the recapture tax provisions 32 of this section. The area may be inspected each year by the 33 county conservation board or the assessor to determine if the 34 area is maintained as a conservation area. If the area is 35 -2- LSB 1465YH (3) 91 jm/md 2/ 5 |
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| 7 | 7 | | H.F. 142 not maintained or is used for economic gain other than for 1 the purposes permitted under this chapter, the assessor shall 2 classify and assess the property in the same manner as all 3 other property subject to taxation as of January 1 of that year 4 and, in addition, the area shall be subject to a recapture tax. 5 However, the area shall not be subject to the recapture tax if 6 the owner, including one possessing under a contract of sale, 7 and the owners direct antecedents or descendants have owned 8 the area for more than ten years. The tax shall be computed by 9 multiplying the consolidated levy for each of the applicable 10 years by the assessed value of the area that would have been 11 taxed but for reduced taxation. This tax shall be entered 12 against the property on the tax list for the current year and 13 shall constitute a lien against the property in the same manner 14 as 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 Sec. 7. NEW SECTION . 427D.7 Report to department of natural 18 resources. 19 The county assessor shall keep a record of all conservation 20 areas in the county and submit a report of the reservations to 21 the department of natural resources beginning not later than 22 June 15, 2027, and each June 15 thereafter. 23 Sec. 8. NEW SECTION . 441.22A Conservation area designation. 24 Conservation areas fulfilling the conditions of chapter 427D 25 shall be subject to tax as provided in section 427D.1. In all 26 other cases where trees are planted upon any tract of land, 27 without regard to area, for forest, fruit, shade, or ornamental 28 purposes, or for windbreaks, the assessor shall not increase 29 the valuation of the property because of such improvements. 30 DIVISION II 31 FOREST AND FRUIT-TREE RESERVATIONS REPEAL 32 Sec. 9. NEW SECTION . 427C.14 Applicability and future 33 repeal. 34 1. This chapter applies to assessment years beginning prior 35 -3- LSB 1465YH (3) 91 jm/md 3/ 5 |
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| 9 | 9 | | H.F. 142 to January 1, 2026. 1 2. This chapter is repealed January 1, 2031. 2 Sec. 10. Section 441.22, Code 2025, is amended to read as 3 follows: 4 441.22 Forest and fruit-tree reservations future repeal . 5 Forest and fruit-tree reservations fulfilling the conditions 6 of chapter 427C shall be exempt from taxation for assessment 7 years beginning prior to January 1, 2026 . In all other cases 8 where trees are planted upon any tract of land, without regard 9 to area, for forest, fruit, shade, or ornamental purposes, or 10 for windbreaks, the assessor shall not increase the valuation 11 of the property because of such improvements. This section is 12 repealed January 1, 2031. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanations substance by the members of the general assembly. 16 This bill creates conservation area designations and 17 eliminates the forest and fruit-tree property tax exemption 18 program. 19 DIVISION I CONSERVATION AREAS. The bill establishes a 20 conservation area designation, to be taxed at the following 21 levy rates: for a commercial conservation area, $12 per acre; 22 and for any other conservation area, $8 per acre. 23 The bill specifies the revenue generated from the levies 24 shall be apportioned by the county treasurer among the several 25 taxing districts in which the area is located in proportion to 26 each taxing districts portion of the consolidated levy rate 27 that would otherwise be applicable to the area but for the 28 designation under the bill. 29 The bill specifies any owner may select any tract of land 30 as a conservation area. The conservation area must consist of 31 five continuous acres. 32 A commercial conservation area must consist of fruit 33 production, pasture land, or an area encompassing a hunting 34 or fishing lease. The bill requires the pasture land to be 35 -4- LSB 1465YH (3) 91 jm/md 4/ 5 |
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| 11 | 11 | | H.F. 142 managed with a certified management plan and have a minimum 1 stubble height of four inches to improve habitat. 2 The bill requires a conservation area containing forested 3 land to have an implemented forest improvement plan. 4 The bill establishes an application process for the 5 establishment of a conservation area. 6 An owner who does not maintain the conservation area is 7 subject to a recapture tax as described in the bill. 8 DIVISION II FOREST AND FRUIT-TREE RESERVATIONS REPEAL. 9 The bill eliminates the forest and fruit-tree reservation 10 tax exemption under Code chapter 427C for assessment years 11 beginning on or after January 1, 2026. 12 -5- LSB 1465YH (3) 91 jm/md 5/ 5 |
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