SF 633 — A bill for an act relating to forest and fruit-tree reservations by establishing a program fee and including contingent effective date provisions.

Senate File 633 - IntroducedReprinted SENATE FILE 633 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 219) (As Amended and Passed by the Senate May 13, 2025) A BILL FOR An Act relating to forest and fruit-tree reservations by establishing a program fee and including contingent effective date provisions.

TLSBSF 2007SV633 (3)(4) 91 jm/mdjm/md/mb S.F.

(2) Amounts collected by a county that are due on or after September 1, 2028, shall be used for property tax relief for fiscal years beginning on or after July 1, 2029, including, for counties subject to section 331.423, subsection 1, paragraph “d”, subparagraph (2), as enacted in 2025 Iowa Acts, Senate StudyFile Bill651, 1227, an adjustment to the calculation of the county’s authorized levy rate for general county services under section 331.423, subsection 1, paragraph “d”, subparagraph (2), subparagraph division (a), as enacted in 2025 Iowa Acts, Senate StudyFile Bill651. 1227.

(1) For forest and fruit-tree reservations not described by paragraph “a” or “b”, and forest and fruit-tree reservations LSBSF 2007SV633 (3)(4) 91 -1- jm/mdjm/md/mb 1/51/4 S.F.

The cumulative inflation factor applies to all assessment years beginning on or after January 1 of the LSBSF 2007SV633 (3)(4) 91 -2- jm/mdjm/md/mb 2/52/4 S.F.

For theeach assessment year beginning on or after January 1, 2027, the department of management shall multiply the adjusted fee amount, if applicable, set forth in subsection 2, paragraphs “a” and “b”, by the cumulative inflation factor, and shall round off the resulting product to the nearest cent.

The resulting factor shall be the fee rate used in subsection 2, paragraphs “a” and “b”“b”, for the applicable assessment year.

Section 331.423, subsection 1, paragraph d, subparagraph (2), subparagraph division (a), as enacted by 2025 Iowa Acts, Senate StudyFile Bill651, 1227, section 3, is amended to read as follows:

(a) If the total assessed value, excluding value attributable to new valuation, used to calculate taxes for general county services under this subsection 1 for the budget year is equal to or exceeds one hundred two percent of the total assessed value used to calculate taxes for general county services for the current fiscal year, the levy rate imposed under this subsection 1 shall not exceed a levy rate per one thousand dollars of assessed value that is equal to one thousand multiplied by the quotient obtained by dividing the product of the budget adjustment factor multiplied by the remainder of current fiscal year’s actual property tax dollars certified for levy under this subsection 1 minus, for fiscal years beginning on or after July 1, 2029, the amount of fees collected by the county under section 427C.14 due by September 1 preceding the budget year by the remainder of the total LSBSF 2007SV633 (3)(4) 91 -3- jm/mdjm/md/mb 3/53/4 S.F.

This Act takes effect on the effective date of 2025 Iowa Acts, Senate StudyFile Bill651, 1227, division I.

EXPLANATIONSF The633 inclusion(4) of91 this-4- explanationjm/md/mb does4/4 not constitute agreement with the explanation’s substance by the members of the general assembly.

Currently, a person who establishes a forest or fruit-tree reservation (reservation) is entitled to a property tax exemption on the tract of land selected to be a reservation, subject to certain conditions.

Beginning January 1, 2026, this bill establishes a fee structure for reservations dependent upon where the reservation is located.

For a reservation located in a county where at least one of the owners of the reservation maintains a homestead, the fee is $2 per acre per year, subject to annual adjustments for inflation.

For a reservation located in a county contiguous to the county where at least one of the owners of the reservation maintains a homestead, the fee is $3 per acre per year, subject to annual adjustments for inflation.

For all other reservations, including a reservation located inside the corporate limits of a city, the fee shall be a rate per acre equal to a formula calculated by the department of management and subject to annual adjustments for inflation.

Fees collected under the bill are to be paid no later than September 1 of each year to the county treasurer of the county where the forest or fruit-tree reservation is located to be deposited into the county general fund.

Amounts collected pursuant to the bill that are due on September 1, 2026, or on September 1, 2027, may be used for any county general fund purpose.

Amounts that are due on or after September 1, 2028, shall be used for property tax relief.

The bill does not take effect unless Senate Study Bill 1227, division I (county property taxes and budgets), also takes LSB 2007SV (3) 91 -4- jm/md 4/5 S.F.

633 effect.

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