This bill introduces a new fee structure for forest and fruit-tree reservations in Iowa, effective January 1, 2026. Currently, individuals who establish such reservations are exempt from property taxes under certain conditions. The new legislation mandates that each acre of these reservations will incur an annual fee, which must be paid to the county treasurer by September 1 each year. The fee varies based on the location of the reservation: $2 per acre for reservations in the same county as the owner's homestead, $3 per acre for those in a contiguous county, and a variable rate for all other reservations, including those within city limits, calculated by the Department of Management.

The bill aims to ensure that while property tax exemptions remain in place for forest and fruit-tree reservations, a fee is introduced to contribute to local county funds. This fee structure is designed to reflect the proximity of the reservation to the owner's homestead and the agricultural value of the land, thereby creating a more equitable system for funding local services.