What is a land trust?

A land trust is a non-profit, independent, entrepreneurial organization that actively works to conserve land by undertaking or assisting in land or conservation easement acquisition, or by its stewardship of such land or easements. Although land trusts are not government agencies, they often work cooperatively with government agencies by acquiring or managing land, researching open space needs and priorities, or assisting in the development of open space plans.

What does a land trust do?

By holding land or conservation easements on land with high conservation value, land trusts counter the economic model of poorly planned development and sprawl. Local and regional land trusts, organized as charitable organizations under federal tax laws, are directly involved in conserving land for its natural, recreational, scenic, historical and productive values. Land trusts can purchase land for permanent protection, or they may use one of several other methods: accept donations of land or the funds to purchase land, accept a bequest, or accept the donation of a conservation easement, which permanently limits the type and scope of development that can take place on the land. In some instances, land trusts also purchase conservation easements.

I just heard about land trusts a few years ago. Are they new?

Not at all! A very few land trusts have already celebrated their centennials, but most are much younger. In 1950, for example, just 53 land trusts operated in 26 states. Today, more than 1,700 land trusts with 100,000 volunteers and two million members operate across the country, serving every state in the nation. So far, land trusts have conserved more than 37 million acres of land, an area roughly the size of New England

What is an accredited land trust?

An accredited land trust has earned its designation from the Land Trust Accreditation Commission. The accreditation seal is a mark of distinction in land conservation. It recognizes organizations for meeting national standards for excellence, upholding the public trust, and ensuring that conservation efforts are permanent. Chikaming Open Lands was among the inaugural group of 39 land trusts awarded accreditation at a special ceremony at The National Land Conservation Conference in Pittsburgh, PA on September 19, 2008.

What is a conservation easement?

A conservation easement is a legal agreement between a landowner and land trust that permanently protects the natural features of the land. Easements are a practical way for landowners to protect the natural resources of their property while retaining ownership.

What activities might an easement prohibit?

Generally, easements will either limit or prohibit the subdivision of a property. Most easements prohibit commercial and industrial activity and any activities that would harm significant natural features. The terms of an easement are dependent upon the individual landowner's desires.

Does a conservation easement mean public access?

No. The landowner decides whether to allow public access. If public access is permitted, it is usually for a specific area of the property such as a marked trail or an access point to a body of water. Most landowners do not allow public access in their conservation easement.

Must the easement cover a person's entire property?

No. A landowner can place all or a portion of the property under easement. Landowners are encouraged to consider their future needs, and if appropriate, to keep a building site for future sale.

Does a conservation easement restrict the landowner's ability to sell or bequeath the property in the future?

No. Landowners can sell or bequeath property that is protected with a conservation easement. Since easements are permanent, the restrictions run with the land and bind future owners.

How are conservation easements enforced?

The conservation easement holder is legally obligated to uphold the terms of an easement. With a regular, documented monitoring program, easement violations are generally prevented. Periodic monitoring visits serve as a reminder that the landowner is legally bound to keep the property maintained according to the easement terms.

Recently passed legislation extends the following new land conservation tax benefits for landowners:

1. Raises the deduction a donor can take for donating a conservation easement from 30% of their adjusted gross income in any year to 50%
   
2. Allows qualifying farmers and ranchers to deduct up to 100% of their income, provided the land remains available for agriculture production.
   
3. Increases the number of years over which a donor can take deductions from 5 to 15 years.
   
4. Only applies to easements donated before December 31, 2009, including bargain sales.

These tax benefits, the most sweeping changes to conservation tax law in two decades, offer an unprecedented opportunity to conserve the lands we cherish and preserve America’s traditional land uses.

Due to changing estate tax and inheritance tax laws, landowners are advised to consult their professional advisor regarding potential benefits land conservation may offer with these taxes.

Under current Michigan law, the taxable value of a parcel of property may not increase from one year to the next by more than 5% or the increase in the consumer price index, whichever is lower, until there is a transfer of ownership. When the property is sold or transferred, the assessment is “uncapped” and the parcel is taxed upon its state equalized value (SEV: 50% of its true cash value). This reassessment upon transfer creates a “pop-up” property tax. P.A. 446 (signed December 2006), eliminates the “pop-up” property tax on the transfer of lands enrolled in a voluntary conservation agreement (also known as “conservation easement”). The Act prevents the taxable value of conservation property from “popping-up” to the state equalized value when it is transferred. (Residences and buildings on the lands are still subject to reassessment to the current SEV.)

Property values are assessed at the local level in Michigan. The State Department of Treasury has issued guidance to assessors and equalization directors at each municipal level to recognize conservation easements when valuing property. It states that assessors should employ the “Before and After” method to determine taxable values of land with conservation easements.