Bill > SF633

This bill establishes a new program fee for forest and fruit-tree reservations that are currently tax-exempt, starting from January 1, 2026. The fee will be paid annually to the county treasurer by September 1st and will vary based on location: owners of reservations where they maintain a homestead will pay $2 per acre, while those in contiguous counties will pay $3 per acre. For reservations in other areas or within city limits, the fee will be calculated using a complex formula involving average property taxes and corn suitability ratings. The collected fees for 2026 and 2027 can be used for any county general fund purpose, but starting September 2028, they must be used for property tax relief. The bill includes an inflation adjustment mechanism where the fee rates will be annually adjusted based on the consumer price index, ensuring the fees keep pace with economic changes. Additionally, the bill modifies a existing tax calculation provision to account for these new program fees, specifically in how county levy rates are determined for fiscal years beginning July 1, 2029. The bill's implementation is contingent on the effective date of another related legislative act (Senate File 651).

Budget and Finance

Ways & Means (Senate)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF633