Iowa (Summary)

Last Updated: March 2020

Tax Type: Current use, exemption, and agricultural land tax credit

Description: Agricultural real estate is valued at its current use. A tax credit is granted to qualified agricultural lands (10 acres or more) to partially offset the school tax burden borne by agricultural real estate. Forest reservations or fruit tree reservations are exempt.

Objective: To reduce or eliminate property taxes to induce landowners to hold their less productive land in timber not only as a source of farm income, but also for erosion control, watershed protection and game cover.

Principal Forest Property Tax Incentive Programs:

1. Program legal-common name: General property tax program (Agricultural real estate)

Law: Iowa Code § 441.21

Description: Agricultural real estate that is in good faith used primarily for agricultural purposes (including trees) is assessed at its current use value based on productivities.

Program Requirements

Min/Max Acreage: N/A

Min. Stocking Growth:N/A

Forest Management Plan: N/A

Duration of Enrollment: N/A

Penalties for Use Change:

Program Administration

State: N/A

County Tax Assessor and Commissioner: Local assessors are charged with classifying real property and determine assessed values.

University: N/A

Landowners: File application to county assessor’s office

2. Program legal-common name: General property tax program (Forest and fruit-tree reservations)

Law: Iowa Code § 427C

Description: Qualified forest lands are exempt from property taxes.

Program Requirements

Min/Max Acreage: 2 acres and more

Min. Stocking Growth:200 trees/acre, not more than 1/5 of trees may be harvested in any one year. If the number of trees falls below 200 per acre, the landowner must restore the area to at least 200 trees per acre within 1 year

Forest Management Plan: N/A

Evidence of Use: The property may be inspected each year by the county conservation board or the assessor to determine if it is maintained as a fruit-use or forest reservation.

Duration of Enrollment: Once the application has been accepted, the area shall continue to receive the tax exemption during each year in which it is maintained as a fruit-tree or forest reservation without the owner having to refile.

Penalties for Use Change: A recapture tax for the preceding 5 years will be paid if land does not continue in the program, unless they have been enrolled more than 10 years.

Program Administration

State: Department of Forestry administers the rules.

County Tax Assessor and Commissioner: Application with local conservation board doing inspections

University: N/A

Landowners: File application to county assessor's office and certify that there are no livestock on the land.

For a more in depth discussion of Iowa property taxes click here!