DONATIONS USING LOCAL PLANNING TOOLS

 

Excepts from Freshwater Wetlands Protection in New Jersey
A Manual for Local Officials (ANJEC, 2004)
 

 

Receiving donations of land or easements is more desirable than purchasing it outright. Local governments can use several techniques to encourage donation of easements on wetland areas and/or buffers. An important first step for preservation at the local level is inclusion of wetlands as critical environmental areas in an open space, greenway, stream corridor, or conservation element of a municipal or county master plan. This establishes the official preservation goal, fulfills eligibility re­quirements for state loan and grant applications, and provides for possible tax benefits for donors.

 

SUBDIVISION AND SITE PLAN REVIEW

 

During local subdivision and site plan review, local government can encourage applicants to donate land or conservation easements on wetland areas designated as critical areas in greenway, conservation, open space or stream corridor plans. A conceptual plan conference provides a good opportunity for discussion of this option. Such donations provide public and private benefits. They protect a critical natural resource and can provide a developer with tax savings. (See box.)

Experience in several towns shows that landowners and developers are quite willing to give easements as long as they are aware of the town's open space policies at the outset of project planning.

 Proper mapping of an easement is essential.  Resolutions of approval should include requirements for surveying the easement using state plane coordinates (for easy translation into GIS) and permanent monuments to mark the easement boundary.

 

Tax Deduction Criteria

Under the Internal Revenue Service criteria, to qualify for a tax deduction, an easement donation must be made in perpetuity and must be given to a qualified organization such as a land trust or public agency, and must provide one of the following functions:

 

‑ public recreation and/or education;

‑ significant natural habitat;

‑ scenic enjoyment;

‑ contribution to local government policy;

‑ historic preservation

 

MUNICIPAL ACTION THAT CAN ENCOURAGE DONATION

 

Local government can provide information to the public about the benefits of donating land or easements. For example, under certain circumstances a landowner may obtain a tax deduction for estate and/or income tax purposes. Environmental Commissions can refer property owners to land trusts for specific information concerning individual properties.

 

 

ENCOURAGING LANDOWNERS TO PROTECT AND HOLD WETLANDS

 

The New Jersey Conservation Restriction and Historic Preservation Act (N.J.S.A. 13:8B‑1 to 9) and the Freshwater Wetlands Protection Act direct local tax assessors to take conservation easements and wetlands into account when they are valuing land. In November 1986 the New Jersey Superior Court affirmed that property encumbered by a perpetual easement that benefits the public should be assessed at a lower value. The court held that:

 

"The taxpayer, in giving up in perpetuity the right to do anything other than keep the property in its natural state, has seriously compromised the property's value as a marketable commodity. The adverse impact of such an encumbrance on market value must be taken into account in arriving at an assessed valuation." Village of Ridgewood and Borough of Midland Park v. The Bolger Foundation. Municipalities should encourage reassessment of properties with wetlands.

 

SPECIAL OPPORTUNITIES FOR AGRICULTURAL LANDS

 

Because many acres of wetlands have been lost due to conversion to agricultural use, opportunities for wetlands restoration on farms exist. The U. S. Department of Agriculture has established programs to provide technical and financial assistance to farmers to control soil erosion. Such controls can help protect wetlands from sedimentation and pesticide/fertilizer contamination.

The Wetland Reserve Program (WRP) is a voluntary program that provides technical and financial assistance to eligible landowners to restore, enhance, and protect wetlands.  Landowners have the option of enrolling elibgible lands through permanent easements or restoration cost-share agreements. Landowners can learn more about this program by contacting their local USDA Service Center, Listed in the phone book under U.S.Department of Agriculature.  Information is also availabe on the web at www.nrcs.usda.gov/programs/farmbill 2002.

    Conservation Reserve Enhancement Program (CREP) is an offspring of the Conservation Reserve Program (CRP), CREP is a voluntary program for agricultural landowners. Unique state and federal partnerships allow you to receive incentive payments for installing specific conservation practices. Through the CREP, farmers can receive annual rental payments and cost-share assistance to establish long-term, resource conserving covers on eligible land.

Section 1318 of the Food Security Act offers assistance to farmers who have taken out loans from the Farmers Home Administration. Debt‑burdened farmers can grant an easement for at least 50 years to conservation organizations or public agencies in return for debt reduction. The U. S. Fish and Wildlife Service is working with the FHA to take full advantage of this program to protect wetlands areas.

    Wildlife Habitat Incentive program is a small program that can protect wetlands.