Agenda - 01-19-1999 - 10e - Laserfiche WebLink

Browse Search

40 donated). Increased tax-reducing incentives can be attractive to many private landowners and acost- effective way to encourage protection of natural resource areas with great public benefits. Owners of large land areas or properties highly appreciated in value often prefer to donate all or part of their (ands for conservation purposes, as part of family estate planning, to escape high capital gains taxes, or to preserve lands- cherished by their families. Conservation donors are entitled to federal income tax deductions. North Carolina can encourage more voluntary donations by increasing the state income tax incentives. The relatively low cap on the current tax credit is not attractive to major landowners. The forty largest private landowners in North Carolina hold approximately 3.25 million acres, but virtually none have yet donated property for conservation purposes. Higher tax credits may encourage them to donate more and higher-value conservation lands or easements. CONSERVATION EASEMENTS, alternatives to public acquisition: Conservation easements, which are permanent restrictive covenants attached to property deeds and prohibit certain kinds of development, have proven to be advantageous alternatives to acquiring full-title to properties for public lands. Conservation easements allow environmentally sensitive lands to remain in private ownership and continue to pay local property taxes based on "current use" (not speculative development) value assessment. Because easements have little impact on the local tax base, they are more desirable for local governments. Conservation easements are attractive to many private landowners and are being increasingly used in many parts of North Carolina to protect natural and scenic areas, scenic roadways like along the Blue Ridge Parkway, or along rivers and streams. In many cases, the tax reductions gained by private landowners who donate conservation easements allow families to avoid unwanted development pressures and keep cherished land in private family ownership. PRIVATE LAND TRUSTS, alternative to government land purchases: National conservation organizations, like The Nature Conservancy, have been active in acquiring exceptional natural areas in North Carolina's mountains and coastal regions. The recent establishment of a statewide network of nearly twenty private land conservancies (known as 'land trvsts'~ operating at the local and regional level, provide the means for protecting lands of greatest interest and concern to local communities. Many landowners prefer to arrange their conservation management agreements with private land trusts, and with special-focus groups like the NC Wildlife Habitat Trust, Ducks Unlimited, and Trout Unlimited local chapters. 1~ocs3l Land trusts are placing emphasis on protecting land areas using conservation easements, as a more cost-effective and often more popular alternative to land purchases. Although most local land trusts in North Carolina are only a few years old, they have already protected more than 42,000 acres of land with conservation easements. Private land trusts are entirely supported financially by donations from the general public and private foundations. We expect that the local sand trusts will take a primary rnle in prntecting lands along the rivers and wetlands of the state. But each easement and land gift has a substantial cost to a land trust in terms of staff and volunteer time, legal and suivey~vrork,-resource inventories, appraisals, insurance, and long-term management costs. The ezpenses, for receiving and monitoring donated land or easements are seldom less than $5,000-8,000 per tract, and often more. WHY ENACT TSI9 LEGISLATION? The increased state income tax incentives for gifts of land and easements for conservation purposes is acost-effective and popular means to encourage voluntary and non-regulatory protection of North Carolina's most significant environmental resources. The actual value and public benefits of donated conservation Iands far exceeds the cost to the general tax revenues of the state. The increased income tax credits and the modest appropriation for grants-in-aid to private land conservation organizations will multiply the donations of conservation easements and land. This legislation promotes private initiatives and public/private partnerships for land conservation. Enactment will provide a vital step toward encouraging more voluntary protection of North Carolina's natural heritage and environmental resources.