Property Tax Assessments of Conservation Easements: New Language in the Wisconsin Assessors' Manual
The 2007 Assessors' Manual, which guides the practice of all Wisconsin Property Tax Assessors, has been updated to include expanded information about conservation easements and how they may impact property value.
As you are well aware, many landowners considering conservation easements wonder how an easement will affect their property taxes. Last year, Gathering Waters Conservancy staff had several meetings with the Department of Revenue in an effort to provide assessors and their supervisors some guidance about conservation easements. The new language in the Assessors' Manual is the product of those meetings.
While the revised Assessors' Manual falls short of providing evaluation methodology and cannot mandate that assessment of eased properties be reduced, the manual updates nevertheless represent a significant improvement. (The old Manual barely mentioned conservation easements, conflated them with zoning restrictions, and made no suggestions about evaluation procedure).
The updated Manual includes the following information and guidance:
- Distinguishes conservation easements as different from other private use restrictions
- Differentiates between zoning and conservation easements
- Directs assessors to consider the specific restrictions on property use in each easement they encounter
- Suggests that if an easement appraisal is made available, assessors should review that appraisal and consider it in their own evaluation procedure. (By charter, members of professional appraisal organizations like the Appraisal Institute, etc, and members of the Wisconsin Association of Assessing Officers follow the same professional standards of property evaluation).
- Clearly states that it is the landowner's responsibility to alert an assessor to the existence of a conservation easement
Click here for a copy of the relevant pages of the revised manual (PDF file).
We hope to continue working with the Department of Revenue and the community of Wisconsin assessors. Our goals at this juncture are that all Wisconsin assessors are familiar with conservation easements and understand basic evaluation practices, and that assessment practices of conservation easements are consistent statewide.
We would like to hear stories of how easements around the state are treated in property tax assessments. Please share any anecdotal information you have about assessment of easements. Knowledge of how assessment practice is currently addressing easements will help us.
If you have any questions about the Manual revisions or stories to relate about assessment of eased property, please contact Pam Felt --- pam [at] gatheringwaters.org or call the office – 608-251-9131 x 11.New IRS Disclosure Requirements for Conservation Easements
Land trusts will notice a new disclosure requirement for conservation easements when they complete Form 990 Schedule A for 2006. Part III of Schedule A, entitled "Statements About Activities" includes a new line 3(c): "Did the organization receive or hold an easement for conservation purposes, including easements to preserve open space, the environment, historic land area or historic structures? If ‘Yes,’ attach a detailed statement.”
Land trusts that hold, acquired, or transferred easements should refer to the instructions for Line 3(c). According to these instructions, the detailed statement required by the IRS should include the following information about easements held, acquired, or transferred during the year:
1. The number of easements held at the beginning of the year, the total acreage under easement, and the number of states in which easements are located
2. The number of easements and the acreage acquired or received during the year
3. The number of easements “modified, sold, transferred, released or terminated” during the year, and the acreage of these easements. Also, the IRS wants to know the reason for the modification, the recipient’s identity, and whether the recipient was a charitable organization qualified to receive the easement.
4. The number of easements in the following categories:
• Easements on buildings
• Easements that encumber a golf course
• Easements within or adjacent to residential developments
• Easement transactions in which the organization receives a charitable contribution from a party to the transaction (described in Internal Revenue Bulletin 2004-28, July 12, 2004)
5. Number of easements (and acreage) monitored during the year
6. Total staff hours devoted to, and expenses (including staff salaries and legal expenses) incurred in monitoring and enforcement of easements during the year
7. Identity of easements on buildings acquired after August 17, 2006, and a statement that the building meets the definition of a “certified historic structure,” as defined by IRS Regulation 170(h)(4)(B)
The published 990 instructions leave some things unclear. What exactly they mean by “within or adjacent to residential development,” for instance, has yet to be clarified. LTA plans to communicate concerns about that vagueness to the IRS and share whatever clarification they get with the land trust community. We’ll do our best to keep you updated.
Please contact Pam Foster Felt at 608-251-9131 x11 or pam [at] gatheringwaters.org with additional questions.
New Report Shows Landmark Gains in Land Conservation in Wisconsin
A new report issued by the Land Trust Alliance in Washington, D.C., cites record numbers of acres being conserved by private nonprofit land trusts across the U.S., with an increase of 96% nationally from 2000-2005. This trend proved true across Wisconsin as well, which reported an increase of 209% in acres conserved over the same period.
The National Land Trust Census provides an in-depth picture of America’s private voluntary land conservation movement and is the nation’s only tabulation of this progress. Over the past five years, the number of land trusts has grown by 32% to a total of 1,667.
Land trusts in each state are working to conserve important land in their communities, including farms, waterways, scenic vistas, forests, urban gardens and parks. These protected lands serve to safeguard water quality, protect wildlife habitat, preserve working family farms, and create opportunities for kids and adults alike to enjoy green space in their neighborhoods.
Wisconsin Trends in Conservation: 2000-2005
- Land trusts in Wisconsin protected 52,696 acres since 2000; this represents a 209% increase in acres conserved
- As of 2005 there are now
54 land trusts operating in Wisconsin, a 17% increase
- Wisconsin land trusts have increased their full-time and part-time staff 40% in five years
- Land trust supporters and volunteers in Wisconsin went up 23%, to a total of 25,881 in 2005
To read the full Wisconsin report visit the Land Trust Alliance Press Release (PDF)
Join
Conservation Lobby Day 2007
hosted by the Wisconsin League of Conservation
Voters
Do you want your legislators
to vote to protect clean water, clean air, natural areas, and sporting
opportunities? So do we!
On February 21st, 2007, join citizens from across Wisconsin at the state
Capitol to tell legislators why you care about the Wisconsin Conservation
Priorities.
Last year, over 250 Wisconsinites descended on the state Capitol to share
their conservation values with their State Legislators. Speaking with
a unified voice was an energizing day for citizens and the conservation
community. It opened legislators eyes to the tremendous support that
exists for conservation.
This year, there are 4 Priority Issues:
- Keep the Great Lakes Waters in the Great Lakes - pass and improve the Great Lakes Compact
- Stewardship for Wisconsin's Future - reauthorize Wisconsin's premier land preservation program
- Restore Conservation Integrity - pass the Hunter, Angler, Trapper Bill of Rights
- Clean Energy for a Bright Economic Future - lower public school energy bills and promote manufacturing and jobs in renewable energy technologies
Legislators need to continue
to hear from you!
Join us for Conservation Lobby Day on Wednesday, February 21st at the
Capital. The event is free, and registration begins
at 9:00 at the Inn on the Park in Madison. The program will begin at
10:00am. Register now, contact Francie at 608-661-0845 or sign up online
at www.conservationvoters.org.
Honoring Conservation Leaders: Call for Nominations
It's true that our Awards Celebration is months away, but it's already time to collect nominations for our Land Conservation Leadership Awards. The awards recognizes the outstanding accomplishments of individuals, policy makers, and land trusts who work together to conserve the places that make Wisconsin special.
The awards honor the power of committed citizens and offer inspiring examples of conservation success. Visit our webpage for descriptions of past winners. We are seeking nominations for:
Land Trust of the Year
Policy
Maker of the Year
Conservationist of the Year and/or Lifetime Achievement
Award
We invite you to nominate an individual or a land trust that has demonstrated leadership protecting Wisconsin's natural resources. For nomination forms and more information about our awards, visit our website.
The deadline for nominations is May 26, 2007.
8th Annual Wisconsin Land Trust Staff Retreat
The 8th Annual Wisconsin Land Trust Staff Retreat will be in Bayfield this year. Mark your calendars – May 18 & 19, 2007. This year, this “staff-only” event will feature conversations on:
- anticipating national accreditation
- evaluating the new DNR standard
template easement
- discussing record keeping systems
- launching a capital campaign
- engaging our public policy agenda
In a comfortable meeting space overlooking Chequamegon Bay, land trust staff will to touch base with colleagues around the state. Please plan to join us!
ALSO -- Gathering Waters Conservancy is coordinating with LTA-Midwest to offer a workshop on building a membership program, including information about using a database to track contributions and streamline membership communications. Open to board and staff of regional conservation organizations, that workshop will be held in Ashland on Thursday, May 17.
Stay tuned to our upcoming events webpage for additional details.
Whether you are a Board member, staff member or volunteer of your local land trust, Gathering Waters Conservancy’s website has helpful resources for you! Our Wisconsin Land Trusts web page has information on:
- land trust directory - to help you find the land trust working in the next county
- grants - private and public funding opportunities
- publications - sample newsletter articles and info packs
- WI DNR Conservation Easement Template - required for Stewardship grant applications
- jobs - job opening in the Midwestern conservation community
- links to other conservation organizations - statewide & national organizations, alliances & collaborations,
- links to other online conservation resources - policy & smart growth info, environmental data, maps, GIS data
- upcoming events - land conservation events around Wisconsin and the Midwest
- news - recent articles featuring land conservation successes
- Land Trust Listserv - a listserv to facilitate dialogue among WI land trust staff, volunteers and board members
- Policy Network Listserv - a listserv for conservation-minded individuals formed to educate decision makers and advocate for conservation programs in Wisconsin
Check out these great resources at www.gatheringwaters.org!
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