Creating conservation area designations subject to modified property tax levy rates and eliminating the forest and fruit-tree reservation property tax exemption program

This bill creates conservation area designations and eliminates the forest and fruit-tree property tax exemption program. DIVISION I —— CONSERVATION AREAS. The bill establishes a conservation area designation, to be taxed at the following levy rates: for a commercial conservation area, $12 per acre; and for any other conservation area, $8 per acre. The bill specifies the revenue generated from the levies shall be apportioned by the county treasurer among the several taxing districts in which the area is located in proportion to each taxing district’s portion of the consolidated levy rate that would otherwise be applicable to the area but for the designation under the bill. The bill specifies any owner may select any tract of land as a conservation area. The conservation area must consist of five continuous acres. A commercial conservation area must consist of fruit production, pasture land, or an area encompassing a hunting or fishing lease. The bill requires the pasture land to be managed with a certified management plan and have a minimum stubble height of four inches to improve habitat. The bill requires a conservation area containing forested land to have an implemented forest improvement plan. The bill establishes an application process for the establishment of a conservation area. An owner who does not maintain the conservation area is subject to a recapture tax as described in the bill. DIVISION II —— FOREST AND FRUIT-TREE RESERVATIONS —— REPEAL. The bill eliminates the forest and fruit-tree reservation tax exemption under Code chapter 427C for assessment years beginning on or after January 1, 2026.