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Washtenaw
Land Trust - April 4, 2005
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On
January 27, 2005 the Joint Committee on Taxation of the Congress
recommended a drastic cut in tax benefits for donations of
land, conservation easements, and for bargain sales. While
some reforms are needed, what has been proposed is out
of proportion to the problem, will not prevent abuse, and
if adopted as written, would have a significant negative impact
on national land conservation policy.
What
are Conservation Easements?
Conservation easements enable a private landowner to voluntarily
donate (or sell) development rights to protect the many values
inherent in the land, thereby providing public benefit yet
keeping the land in private ownership and on the tax rolls.
Presently, the private donor of development rights to a qualified
organization may achieve property, income and estate tax benefits.
The
Joint Tax Committee proposed:
- Disallowing any income tax deductions for donating
a conservation easement on the property on which a landowner
lives. This would eliminate most conservation easements.
- Slashing the deductions allowed for donating a conservation
easement, from the full appraised market value of the development
rights, to no more than 33% of the value.
- Limiting deductions for donating land to the landowner's
basis (cost to acquire) in the land, which punishes long-term
landowners and gravely hurts conservation.
The cumulative impact of these proposed changes will dramatically
reduce landowner incentives, and donations of easements will
likely significantly decline.
The
Impact to Conservation
The current national conservation policies represent 30 years
of carefully considered, bipartisan, legislatively created
incentives that provide a practical way for private landowners
to voluntarily protect conservation values on their land for
the benefit of the general public. Across the country roughly
1,400 land trusts/conservancies hold charters to enable and
nurture the process. Many million acres of land have been
protected, and in the case of donations, at no cost for acquisition.
The
proposals would virtually eliminate incentives for landowners
who voluntarily conserve their lands, would end the long record
of community benefits from land trusts, and would severely
hamper federal, state, county and local efforts for conservation
and agricultural preservation.
For us
at the Washtenaw Land Trust, these proposals have the potential
to end our work of protecting the working farms and
natural areas in Washtenaw, Jackson, and Ingham counties.
The first land trust ever established in Michigan, we now
have over 1000 supporting members, and we have protected 36
parcels totaling 1,700 acres. 21 of the parcels are protected
through donated conservation easements that WLT will retain
in perpetuity. These parcels provide public parks, nature
preserves, watershed protection, productive farmland and/or
greenspaces for our community, all at very low cost. While
matching grants and monetary contributions assist our work,
we also rely on donated easements.
The loss
of farmland and open space is accelerating. WLT projects and
programs would be directly, immediately and devastatingly
affected by this tax revision. With the land trust's primary
focus being farmland preservation, these tax proposals
would imperil our ability to protect working farms.
Action
Needed
We would greatly appreciate your leadership in advocating
for incentives for private land owners to accomplish land
conservation. Please speak out against these proposals by
writing your local legislators, as well as Senate Finance
Committee Chairman, Charles Grassley, and Bill Thomas, Chair
of the House Ways and Means Committee, expressing your opposition
to the proposals due to their impact on private land conservation.
About
the Washtenaw Land Trust: The Washtenaw Land Trust is
a private, non-profit, tax-exempt 501(c)(3) organization that
works to protect farmland and natural areas throughout Washtenaw
County and the surrounding region.
Download a printable version of this Fact Sheet
Back
to Protecting Private Conservation
Washtenaw
Land Trust
info@washtenawlandtrust.org
734-302-LAND(5263)
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