A conservation
easement is a voluntary legal agreement between a landowner and a
qualified not-for-profit conservation organization or government
agency that permanently preserves land. The conservation easement
restricts the use and development of a property in a manner that
protects specific conservation resources (e.g. wetlands, forests,
scenic views, agricultural fields). Conservation easements are
flexible documents and can be written to fit the needs of the
landowner while still conserving important resources on the
property. They are legal documents that are recorded with the
County Clerk and become part of the property’s title.
A conservation
easement can be given (granted) to a qualified not-for-profit
conservation organization or to a public body such as the state,
county or a town. The recipient of the conservation easement (the
holder) must accept it in writing and agree to enforce the terms of
the easement. Dutchess Land Conservancy is a qualified
not-for-profit conservation organization and can hold and enforce
conservation easements.
Yes. By granting a
conservation easement you give up certain rights on your property
(mostly with regard to development) but you keep your right to own,
sell, lease, mortgage, farm, build upon or otherwise use your
property as long as such uses are consistent with the terms of the
conservation easement. The easement holder only has the right to
monitor and enforce the terms of the conservation easement.
A conservation
easement restricts the use and development of your land. Specific
areas may be designated on a conservation easement map to show where
development is appropriate (building envelopes) and areas that
should be protected (preservation areas). For example, you may have
a significant wetland on your property or a steeply wooded ridgeline
that you would like to protect. These areas can be designated as
preservation areas in the conservation easement. Designated
preservation areas can help ensure important habitat, farmland,
water resources and scenic views are highly protected.
Yes. DLC
understands that landowners must balance their development needs
with their conservation goals. Based on your first-hand knowledge
of the resources on your property, DLC can work with you to
determine the most appropriate places to build that will minimize
any impact on the resources you wish to protect. This can be
accomplished through designating building envelopes as well as
limiting the number and size of structures that can be built. All
conservation easement restrictions are written in consultation with
you to assure that future structures are sited in appropriate
locations and that important resources are protected.
A conservation
easement is enforced by the organization or government agency that
holds the easement. After providing notice to all conservation
easement owners, DLC conducts annual aerial monitoring.
Additionally every three to four years, DLC provides notice and
works out a convenient time with landowners to ground monitor
easement protected properties. Aerial and ground monitoring allows
DLC to observe changes to properties and ensure that landowners are
following the terms of their conservation easements. If a violation
occurs, DLC will work with the landowner to voluntarily cure the
violation. Although not preferable, if necessary, an easement can
be enforced by court action.
Tax assessments are
made by local assessors based on the fair market value of property.
Undeveloped land does not demand as many municipal services as does
developed land. Logically, a highly restrictive conservation
easement that reduces a property's market value should be reflected
in a lower assessment, but this decision falls within the discretion
of the local assessor. If you grant a conservation easement, you
should make your local assessor aware of the restrictions on your
property and discuss whether your property could receive a reduced
assessment.
Some land under
conservation easement receives special tax treatment by way of
agricultural assessments under the Agricultural Districts Law
(Section 25 AA of the Agriculture and Markets Law) or the forestry
exemptions under the Forest Tax Law (Section 480-a of the Real
Property Tax Law). For property tax purposes, a conservation
easement may have little impact on land enrolled in these programs
as the properties are already receiving reduced assessments. While
assessors may use their discretion with respect to reducing property
assessment regarding conservation easements, agricultural
assessments and forestry exemptions are mandatory.
While conserved land
may or may not receive favorable treatment with the local assessor,
there is another way that conservation easements can help with your
local tax bill. In 2006 New York State enacted a first-in-the-nation
tax credit for conservation easements. This tax credit helps
landowners with conservation easement protected land by refunding a
portion of the real estate and school taxes that they pay every
year. TAX BENEFITS
A landowner who
donates a qualified conservation easement may qualify for Federal
and State income tax benefits. A donated conservation easement, in
compliance with the Federal tax code, is considered a charitable
gift and the landowner can qualify for a Federal tax deduction for
the value of the gift. Additionally, donating a conservation
easement can result in significant estate tax savings when
incorporated into effective estate planning. DLC recommends that
all landowners consult with their legal and tax professionals before
donating a conservation easement to discuss all the potential tax
and financial implications. TAX BENEFITS
Deed restrictions,
also known as restrictive covenants, are voluntary private
restrictions that limit the use and development of land. The
parties seeking to limit the use of a property or properties enter
into a contract that may be enforced by the parties to the contract
and/or specific adjoining landowners who directly benefit from the
deed restrictions. Deed restrictions can include the same
restrictions set forth in a conservation easement (e.g. limitations
on where to build, size of structures, clearing of trees). However,
deed restrictions do not enjoy the same legal status as a
conservation easement and are not afforded the same potential tax
benefits. While, deed restrictions may in some circumstances be
eliminated by the mutual consent of landowners or through court
action, it is much more difficult to remove a conservation
easement. A combination of deed restrictions and a conservation
easement provides the strongest protection, because the parties to
the restrictions, the adjoining owners and DLC have enforcement
rights, and the conservation easement enjoys a special legal status
that makes it difficult to overturn in court.
If you are
interested in learning more about conservation easements, please
contact us at (845) 677-3002.
This information does not constitute legal or tax advice and DLC
strongly recommends that you discuss your land conservation options
with legal and tax professionals.
