|
“If
there is an easement on my property, does the land trust
have control of my property?”
Organizations holding easements have responsibility to make sure
the terms of the easement are being honored, but they do not have
control over or ownership of any part of the property.
“How
much will I save on my income taxes if I donate a conservation easement?”
That question has no one general answer. Easements need to be appraised
by a professional appraiser, who will determine the value of the
property without an easement, then the market value of the property
once the easement has restricted land use on the property. The difference
of the two is the value of the easement—a non-cash gift to
a non-profit. Depending on each individual’s tax profile,
that value may make a significant difference in his Federal income
tax that year. If the easement does not change the value of the
property very much—say it protects wetland bird habitat that
was not very marketable as development property, anyway—the
impact on one’s tax return may be small.
“What
about public access? If I have an easement on my land, can anyone
come hunt there?”
This question has no one answer; it will depend a good deal on the
purposes of the easement and, if a conservation easement has been
sold to a land trust, the funding sources the land trust used to
help make that purchase. Generally speaking, donated easements are
better tools for protecting land and prohibiting public use than
purchased easements are. But, if one donates an easement for educational
purposes—for a nature center, for instance—it would
not follow to prohibit public use of the land! If a landowner donates
an easement because he is concerned about a special view or endangered
species, that easement may well prohibit public access. Easements
purchased using funds from the Knowles-Nelson State Stewardship
Fund usually do require public access, because public funds are
helping support conservation of that property.
“How
much will an easement be worth?”
Professional appraisers determine the value of conservation easements.
They will determine the value of the property without an easement,
then the market value of the property once the easement has restricted
land use on the property. The difference of the two is the value
of the easement.
“Will
an easement lower my property taxes?”
That question has no one general answer. Easements need to be appraised
by a professional appraiser, who will determine the value of the
property without an easement, then the market value of the property
once the easement has restricted land use on the property. The difference
of the two is the value of the easement—a non-cash gift to
a non-profit. Depending on each individual’s tax profile,
that value may make a significant difference in his Federal income
tax that year. If the easement does not change the value of the
property very much—say it protects wetland bird habitat that
was not very marketable as development property, anyway—the
impact on one’s tax return may be small.
Many landowners hope that recording a conservation
easement on their property will reduce property taxes. That is not
always the case. The rules governing property tax assessment in
Wisconsin require only that assessors 'consider' the effect of the
easement. In some cases, assessments have not changed, in others
they have been reduced. For more discussion see
The Impacts of Conservation Easements on Property Tax in Wisconsin.
“What
if my children want to build a house on the land, or I want a hunting
cabin?”
Many easements allow for some building. Easements are very flexible
tools! If you are considering an easement, it is helpful for to
discuss with your family what goals you have for the property so
that all those hopes are communicated at the beginning and the easement
can accommodate those long-term visions.
“What
if I change my mind?”
Conservation easements are not good tools for landowners who are
not completely sure they want to protect conservation values on
their land forever. They can be extinguished only by the power of
imminent domain—condemnation of the land for public purposes
like a road or powerline. They last “in perpetuity”
and bind all future landowners to protect the conservation values
on the property. Easements have proven to be very durable legal
instruments.
“How
do I know that the land trust will last forever?”
Forever is a long time, and the honest answer is that no one can
know if a land trust will last in perpetuity. However, all conservation
easements should designate alternate easement holders, so that should
the land trust holding an easement cease to exist, another organization
has already agreed to hold the easement and take responsibility
for it.
|
