Transcript CONVERSTATION EASEMENT - Hendry County Property Appraiser

CONSERVATION
EASEMENTS
What is a Conservation Easement?
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A conservation easement is a legally binding agreement between a
landowner and a governmental agency or conservation group entity
that permanently limits uses of the land in order to protect
ecological, historic, or scenic resources. Besides possessing a piece
of land and paying taxes on it, landowners have rights to the land
such as the ability to subdivide, build structures, cut trees, mine for
minerals, and other rights. A conservation easement allows a
landowner to retain ownership while restricting some of those rights
in order to protect the property’s conservation values. Easements
are custom designed and negotiated to meet the personal and
financial needs of the landowner. An easement may cover portions
of a property or the entire parcel. The easement will identify the
rights the landowner wishes to retain, limit, or forgo.
Why do landowners sell or donate Conservation Easements?
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Landowners sell or donate conservation easements for a variety of
reasons. Foremost is a love of their land and a strong desire to
protect it for their families and future generations. Conservation
easements are powerful estate planning tools that provide families
the opportunity to plan together for the future of their land.
Neighboring landowners who create conservation easements on
contiguous properties provide mutual protection against unwanted or
unplanned development while sharing the benefits of conserving
larger resource areas for wildlife, scenic landscapes, privacy, and
prescribe burning.
The sale or donation of a conservation easement may provide
substantial tax benefits' through the reduction of federal income and
estate taxes, and possible property tax relief.
What does a typical Conservation Easement contain?
Typical conservation easement between landowners and easement holder will do the
following:
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Follow the Internal Revenue Code guidelines for establishing conservation easements
Specifies how the easement meets the mission of the conservation agency.
Establishes the criteria by which the easement meets the test of natural habitat, productive
forestry, scenic values, or historically important land area
Protect against commercial or residential development of the property
Specify that the land may continue to be used in future years, as it is now, for traditional
rural uses such as farming, forestry, hunting, wildlife management, etc.
Allow for timber harvesting in conformance with “best management” standards and
mutually agreeable management plans
Specify the maximum number of buildings which may be located on the property in the
future
Conserve a special animal or plant habitat, wetland feature, or historic resource
As a legal agreement, a conservation easement is recorded in county records. Easements
are granted in perpetuity, and therefore, all future owners are subject to the easement’s
conditions. The role and responsibility of easement holder is to work with the landowner to
ensure that the conservation values identified in the easement are protected over time.
What rights does the landowner retain?
The landowner retains all property rights except the ones specifically
and voluntarily relinquished or restricted by the easement. The
landowner continues to own the land and can use it in any manner
consistent with the easement provisions. Commonly, conservation
easements with easement holder allow the owner to continue doing
on the land what he or she was doing prior to donating the
easement. The owner can sell the land, live on it, or leave it by will.
The landowner maintains and manages the property and continues
to pay real estate taxes. In essence, while an easement must
protect the conservation values on the property, it can be designed
in a flexible manner by the landowner to achieve a broad range of
personal goals.
What Properties are considered for a conservation easement ?
Conservation agencies or groups consider accepting easements that
further the mission of the organization and provide strategic conservation
values that benefit the general public.
Preference is given to those easements that protect land:
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With important concentrations of natural, historic and or open space
resources
Facing a high risk of conversion for development
Adjacent to existing easements or other protected open space areas
Containing a low level of existing development
With a low potential for future problems in monitoring, management, liability
and enforcement
Must a Conservation Easement allow public access on the property?
No. Landowners granting conservation easements choose whether
or not to open their property to the public. Public access is only
required if the primary conservation value of the property is public
recreation or education. Scenic or historic preservation easements
require public visibility, but not necessarily access. Most easement
holders’ easements do not require public access because they are
protecting significant wildlife or plant habitats, open space, or
agricultural lands.
Can a Conservation Easement be donated by will?
Yes, landowners can specify by will that a conservation easement
be placed on their property upon their death. In addition, heirs can
place an easement on the property within nine months after the
death of a landowner in order to qualify for an estate tax charitable
deduction. It is best, however, for landowners to donate
conservation easements during their lifetimes, or in their wills, when
there is adequate time to work through easement provisions. In all
cases, however, it is advised to seek professional counsel regarding
estate planning.
What are the costs associated with a Conservation Easement?
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An attorney to provide legal advice and draft the conservation
easement
An appraiser to determine the value of the conservation easement
which is required if the landowner intends to claim income or estate
tax benefits
An accountant to determine the income tax implications
Some Florida Conservation
Easements Holders
US Fish and Wildlife
 The State of Florida
 Water Management Districts
 Nature Conservancy’s
 Conservation Trust of Florida
 Tall Timbers Fondation
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The Easement Process
1. Inventory and assess biological features and document current conditions of property
at time of easement (maps, technical description, et cetera); write
Baseline Documentation Report and send draft to landowner
2. Develop Conservation Management Plan utilizing a model document that will outline
the proposed measures for protection of the conservation values of the easement
- landowner, landowner’s manager, forestry consultant, or consultants
3. Prepare easement specific to the property
4. Negotiate legal easement constraints – purposed easement holder, landowner, and
attorneys
5. Submit easement to conservation agency or group for review, comment, and
recommendation.
6. Conduct appraisal of property
7. Conduct survey of proposed easement if needed
8. Final easement review by all parties
9. Final easement approved by conservation easement agency or group
10. Signature of easement document by all parties
11. Record easement document, deed, etc. in county court house
Monitor condition of easement property annually in perpetuity
Amendment 4
House Bill 7157
Amendment 4 House Bill 7157 created two classes of property
tax exemptions.
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Perpetual : Dedicated in perpetuity, encumbered by an
irrevocable conservation easement
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Less than Perpetual: Encumbered by an conservation
easement of 10 years or more
Perpetual Conservation Easement Property
Tax Exemption
New for 2010 Tax Roll House Bill No. 7157
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Exemption for Conservation Dedicated in Perpetuity
Form DR-418C application DR-418CR renewal
Exemption for dedicated in perpetuity and used
exclusively for conservation purposes 100%
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Exemption for dedicated and used only for allowed
commercial purposes up to 50% Note: agriculture is an
allowed commercial use
Parcels less than 40 contiguous acres are to be sent to the
Florida Acquisition and Restoration Council (ARC) for approval
Acquisition and Restoration Council (ARC)
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Florida Acquisition and Restoration Council (ARC) a committee,
appointed by the Governor, that selects and ranks conservation
acquisition projects, reviews land management issues and provides
input to the Governor and the Board of Trustees of the Internal
Improvement Trust Fund.
This committee will approve or deny all Perpetual Conservation
Easements Property Tax exemptions of less than 40 contiguous
acres.
Land Used For Conservation Purposes Assessment
10 Years or More, Less than Perpetual
Application for the Classification Use (value in use)
assessment for land use for conservation purposes for
10 years or more that meets the requirements of the
conservation easement in section 704.06
From DR-482C application DR-482CR renewal
Special Thanks
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Tall Timber Research Station and Land
Conservancy
Tallahassee Florida
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Conservation Trust for Florida
Micanopy Florida