SSB 3110

Current Code chapter 427C authorizes a property tax exemption for certain forest reservations and fruit-tree reservations. To qualify for the exemption as a forest reservation, the property must be at least two acres in continuous area and meet certain tree density requirements. The bill provides that for assessment years beginning on or after January 1, 2021, the exemption for forest reservations and fruit-tree reservations is percent of the actual value of the property comprising the forest or fruit-tree reservation. _____ less than two acres in continuous area. For assessment years beginning on or after January 1, 2021, each forest reservation must be not less than acres in continuous area and the period of the exemption is for a period of five years. However, the bill establishes provisions to governing forest reservation exemption applications filed on or before February 1, 2020. For forest reservation exemption applications filed on or before February 1, 2020, unless the reservation fails to meet the 10-acre requirement, the period of the exemption ends at the conclusion of the fifth assessment year following the certification conducted by the department of natural resources as provided in the bill. For forest reservation exemption applications filed on or before February 1, 2020, if the reservation fails to meet the 10-acre requirement, the reservation’s exemption terminates beginning with the assessment year beginning January 1, 2021. The bill provides that for forest reservation exemption applications filed after February 1, 2020, if, following approval of the exemption, the department of natural resources determines that the forest reservation meets the criteria for depredation under Code chapter 481C, the owner must enter into a depredation agreement with the department of natural resources for each of the remaining years of the exemption period. For each such depredation agreement, the number of licenses issued each year to persons other than the landowner or a family member shall not be less than percent of the total licenses issued for that year. The bill also requires the department of natural resources to inspect the area for which an application is filed for a forest reservation tax exemption before the application is accepted. Additionally, an area that is a forest reservation may be inspected each year by the department of natural resources to determine if the area is maintained as forest reservation. _____ receiving an exemption that meets the 10-acre requirement that was approved for an assessment year beginning before January 1, 2021. If the forest reservation meets the requirements for the exemption, the department shall certify the reservation’s compliance to the county auditor of the county where the forest reservation is located to be used in determining the period of the exemption. If the forest reservation fails to meet the requirements for the exemption, the department shall deny certification and shall notify the owner and the county auditor of the county where the forest reservation is located of the denial and the exemption shall cease beginning with the immediately succeeding assessment year. The certification or denial of certification by the director of the department of natural resources for each of the forest reservations shall be completed by July 1, 2025.22, for assessment years beginning before January 1, 2021, and for duties, powers, protests, appeals, proceedings, actions, or remedies attributable to an assessment year beginning before January 1, 2021.