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.
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."
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
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.