Text: HF108            Text: HF110
Complete Bill History


House File 109

HOUSE FILE BY GIPP Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the qualification of property for purposes of 2 the forest reservation property tax exemption and including an 3 applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1516HH 80 6 mg/sh/8 PAG LIN 1 1 Section 1. Section 427C.3, Code 2003, is amended to read 1 2 as follows: 1 3 427C.3 FOREST RESERVATION. 1 4 A forest reservation shall contain not less than two 1 5 hundred growing forest trees on each acre. If the area 1 6 selected is a forest containing the required number of growing 1 7 forest trees, it shall be accepted as a forest reservation 1 8 under this chapter provided application is made or on file on 1 9 or before February 1 of the exemption year and all owners of 1 10 the property being claimed as a forest reservation declare 1 11 residency in Iowa for purposes of income taxation. If any 1 12 buildings are standing on an area selected as a forest 1 13 reservation under this section or a fruit=tree reservation 1 14 under section 427C.7, one acre of that area shall be excluded 1 15 from the tax exemption. However, the exclusion of that acre 1 16 shall not affect the area's meeting the acreage requirement of 1 17 section 427C.2. 1 18 Sec. 2. Section 427C.12, unnumbered paragraph 2, Code 1 19 2003, is amended to read as follows: 1 20 The board of supervisors shall designate the county 1 21 conservation board or the assessor who shall inspect the area 1 22 for which an application is filed for a fruit=tree or forest 1 23 reservation tax exemption before the application is accepted. 1 24 Use of aerial photographs may be substituted for on=site 1 25 inspection when appropriate. The application can only be 1 26 accepted if it meets the criteria established by the natural 1 27 resource commission to be a fruit=tree or forest reservation. 1 28 Once the application has been accepted, the area shall 1 29 continue to receive the tax exemption without the owner having 1 30 to refile during each year in which the area is maintained as 1 31 a fruit=tree or forest reservation without the owner having to 1 32 refile and with respect to use as a forest reservation, all of 1 33 the owners declaring residency in Iowa for income taxation 1 34 purposes during each year. If the property is sold or 1 35 transferred, the seller shall notify the buyer that all, or 2 1 part of, the property is in fruit=tree or forest reservation 2 2 and subject to the recapture tax provisions of this section. 2 3 The tax exemption shall continue to be granted for the 2 4 remainder of the eight=year period for fruit=tree reservation 2 5 and for the following years for forest reservation or until 2 6 the property no longer qualifies as a fruit=tree or forest 2 7 reservation. The area may be inspected each year by the 2 8 county conservation board or the assessor to determine if the 2 9 area is maintained as a fruit=tree or forest reservation. 2 10 PARAGRAPH DIVIDED. If the area is not maintained or is 2 11 used for economic gain other than as a fruit=tree reservation 2 12 during any year of the eight=year exemption period and any 2 13 year of the following five years or as a forest reservation 2 14 during any year for which the exemption is granted and any of 2 15 the five years following those exemption years, the assessor 2 16 shall assess the property for taxation at its fair market 2 17 value as of January 1 of that year and in addition the area 2 18 shall be subject to a recapture tax. However, the area shall 2 19 not be subject to the recapture tax if the owner, including 2 20 one possessing under a contract of sale, and the owner's 2 21 direct antecedents or descendants have owned the area for more 2 22 than ten years. The tax shall be computed by multiplying the 2 23 consolidated levy for each of those years, if any, of the five 2 24 preceding years for which the area received the exemption for 2 25 fruit=tree or forest reservation times the assessed value of 2 26 the area that would have been taxed but for the tax exemption. 2 27 This tax shall be entered against the property on the tax list 2 28 for the current year and shall constitute a lien against the 2 29 property in the same manner as a lien for property taxes. The 2 30 tax when collected shall be apportioned in the manner provided 2 31 for the apportionment of the property taxes for the applicable 2 32 tax year. 2 33 Sec. 3. APPLICABILITY DATE. This Act applies to claims 2 34 filed or on file on or after January 1, 2004. 2 35 EXPLANATION 3 1 This bill requires that before an area of property may 3 2 receive and continue to receive the property tax exemption as 3 3 a forest reservation, all of the owners must declare residency 3 4 in Iowa for purposes of income taxation. This requirement is 3 5 the same as that for claiming the homestead tax credit. 3 6 The bill applies to claims filed or on file on or after 3 7 January 1, 2004. 3 8 LSB 1516HH 80 3 9 mg/sh/8
Text: HF108            Text: HF110 Complete Bill History