The 1906 Iowa Legislature passed the Forest and Fruit Tree Reservation Act encouraging landowners to hold poorer lands in timber as another source of farm income, erosion control, watershed protection and game habitat. Before 1935 forest reservations had a tax value assessment of $1/acre. Current assessments are $0/acre.
The 2023 Iowa legislature’s Senate File 548 proposes to eliminate this tax exemption provision. While SF 548 sponsors argue it’s needed to bolster county budgets, the current exemption’s estimated property tax loss represents only 2/10 of one percent of total statewide county budgets.
The Iowa forest reserve program benefits the whole state. Its results recoup any program costs. The forest reserve tax exemption should be maintained.
The Iowa DNR reported a Forest Reserve Program enrollment of 21,445 landowners from 99 Iowa counties representing 22% of all Iowa forestland providing benefits like economic activity, habitat growth, watershed protection, air quality and outdoor recreation.
www.iowadnr.gov/Portals/idnr/uploads/forestry/reservefactsheet11.pdf
The current tax exemption determines how Iowa landowners approach owning and managing their forest reserves. My county assessor estimated that SF 548 will result in property tax increases of $60.00 per acre the first year and greater in subsequent years. An initial property tax increase of $3000.00 could be expected on a 50-acre plot.
SF 548 threatens the financial feasibility of forest reserves resulting in unnecessary tax increases on Iowa’s property owners, especially small farmers and older Iowans. SF 548 encourages sprawl and discourages critical forest, habitat and soil preservation efforts.
Michael Daly
Lisbon