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To Leaders in Conservation:
Yesterday, I testified
before the Senate Finance Committee, and I would like to provide
you with a quick report on the hearing.
HEARING REPORT
The tone of the hearing was generally positive. The hearing was
attended by eleven Senators, including Senator Grassley (R-IA),
Senator Baucus (D-MT), Senator Lott (R-MS), Senator Rockefeller
(D-WV), Senator Snowe (R-ME), Senator Thomas (R-WY), Senator Lincoln
(D-AR), Senator Santorum (R-PA), Senator Bunning (R-KY), Senator
Schumer (D-NY), and Senator Crapo (R-ID). Nearly every Senator present
acknowledged the importance of conservation by land trusts, and
expressed their desire to ensure that it would continue. This hearing
was a major turning point in the consideration of the proposals
made by the Joint Committee on Taxation, at least in the Senate.
My reading was that the Finance Committee has set those proposals
aside. Thanks to all of you who have contacted your Senators and
Representatives!
This is certainly good news. But we still face
major challenges. Chairman Grassley and Ranking Member Baucus remain
quite determined to enact changes to the law to prevent abuses.
The report written by their committee staff included the following
recommendations:
- The Congress should consider limiting charitable
contribution deductions for certain small easement donations and
consider providing the IRS with authority to require pre-approval
of tax deductions for such donations.
- The IRS should consider suspending or revoking
the tax exempt status of organizations that regularly and continuously
fail to monitor and enforce conservation easements.
- The IRS should issue guidance regarding what
factors may be necessary to establish minimum levels of compliance
regarding monitoring of easements.... These factors may include...
a stewardship fund dedicated to each easement.
- The Congress should consider implementing an
accreditation program for land trusts.
- The Congress should consider whether current
UBIT (Unrelated Business Income Tax rules) adequately address
the regular and continuous solicitation, acqusition and sale of
non-charitable use property.
These are broad outlines, and the details worked out on such proposals
will be of great importance to every land trust.
We will need your engagement in this process and
we will negotiate vigorously on behalf of land trusts. But I must
be frank. There will be changes - and some of those changes will
prevent us from doing some things we have been able to do in the
past. We have shown you several versions of proposals we thought
would meet the objections the committee staff have raised, and welcome
your suggestions for a better way to solve these problems, particularly
the question of small lots and back yards. I have asked LTA's Director
of Public Policy to convene land trusts interested in this issue,
so please let him know if you would like to help by emailing ProtectPrivateConservation@lta.org.
If the changes we suggest do not eliminate what staff perceives
as donations not yielding a public benefit, their alternative will
be a process that places extreme burdens on all conservation donations.
In addition to the reform proposals noted above,
other ideas surfaced in staff's answers to questions from Senators,
including that of a national conservation board to review the conservation
values of easements. Staff also, when asked, declined to say that
sale of property to a government conservation agency should be exempt
from UBIT. Clearly, the staff are still considering a wide range
of options beyond what is recommended in their report.
Our work with the committee staff over the next
few weeks will be key in shaping the details of their recommendations.
We will continue to emphasize several messages:
- Let accreditation be a private-sector initiative,
run by our community (LTA and land trusts) - and not a government
designed mandate tied to tax deductions.
- Strong enforcement of existing tax law is welcomed
by land trusts.
- Legislating tougher appraisal standards and
penalties for improper appraisals are a major component in curbing
abuse.
You can view witnesses' written testimony at http://www.finance.senate.gov/sitepages/hearings.htm.
NEXT STEPS
Thank you for all your tremendous work in the last four months.
However, the policy challenges have transformed from a sprint to
a marathon, and the land trust community is counting on your continued
action and diligence. We hope that you will:
- Stay informed by joining us for today's conference
call, and visiting www.lta.org/publicpolicy/ppc.htm
.
- Continue to place positive stories and op-eds
outlining the value of conservation easements and land trusts
work. Members of the Committee and their staff will pay attention
to the press coverage of land trusts in their state as they design
reform legislation, and you can make sure that message is positive.
Email ProtectPrivateConservation@lta.org for assistance.
- Communicate with your Senators and Representatives
about the good work that you do! Invite them to events, send your
newsletter to their regional and DC staff, keep them up-to-date
on your successes, and meet with them when you are in Washington,
DC.
When I spoke before the Committee yesterday, I carried the story
of the land trust community - dedicated stewards conserving valuable
land, acre-by-acre, in communities across the country. I thank you
for your commitment to building that legacy, and your recent and
remarkable work to educate the public and policymakers about your
efforts.
Sincerely,
Rand Wentworth
President
Land Trust Alliance
1331 H Street NW, Suite 400
Washington, DC 20005
202.638.4725
ProtectPrivateConservation@lta.org
To
learn more about this issue, visit the Land Trust Alliance's policy
website.
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