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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
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
district’s
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.
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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
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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
owner’s
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
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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
explanation’s
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
district’s
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
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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.
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