Copyright 2007   LandChoices -   All Rights Reserved	From the Green Bay Press Gazette  Posted March 19, 2006 What's a land trust? Here's how they work By Jim Lee Gannett Wisconsin Newspapers There are two basic forms of Wisconsin land trusts and tax benefits vary with each, according to Vicki Elkin, executive director of Gathering Waters, the guiding agency for state land trusts. A landowner either may deed a conservation easement to a local land trust or provide the trust with title to the land through sale or donation. An easement is a binding legal agreement to preserve the land from development and to adhere to land conservation practices. There is no requirement for public access. A landowner sets conditions with the trust's concurrence. For example, the owner of 40 acres might opt to conserve 38 acres, leaving out two acres for current and future structures. "It's typically not a no-development program. It's really a limited-development program," said Bryan Pierce, executive director of Northwoods Land Trust, based in Eagle River. "We try to keep terms straightforward, so they are easy for the landowner to follow and for the Land Trust to enforce," Elkin said. Under a conservation easement, the landowner might be entitled to a federal and state income tax deduction, Elkin said. "State law also requires the local tax assessor to take a conservation easement into consideration when evaluating the land for property taxes," she said. "Assessors do not apply the law evenly across the state. The average deduction in property value is about 50 percent. "There may also be estate tax benefits as the value of the easement is removed from the value of the property" thus reducing potential inheritance taxes. Elkins said the executor of an estate — with the approval of the beneficiaries — could donate a conservation easement after the death of the landowner and still retain the inheritance tax benefit. "There's no requirement for public access (with an easement)," she said, "but some landowers do allow it." A direct transfer of title — either through outright donation or sale — allows for public use of the property (for such activities as hiking, berry picking, hunting and fishing). "The trust (Gathering Waters) buys exceptional properties through use of the state Stewardship Fund," Elkins said. Working with the state Department of Natural Resources, the trust provides matching funds to utilize the state funds. She said the trust obtains about $8 million annually from the Stewardship Fund and has received about $50 million during the past 10 years. In some cases, land is sold to the trust at below market value because the landowner wants to ensure the property is preserved by the state and to obtain a potential tax deduction. "Some landowners retain the right to live on the property for their lifetime," Elkins said. Each conservation easement also requires a donation to the trust to cover the cost of ensuring compliance in perpetuity, Pierce said. "The fee typically ranges from $5,000 to $7,000, depending on the distance and time it would take to monitor the property," he said. "We will fundraise the money if we can't get it from the landowner." Notes from LandChoices regarding property taxes: In many states, state law does NOT require the local tax assessor to take a conservation easement into consideration when evaluating the land for property taxes. In most states it is the responsibility of the landowner to discuss any possible property tax adjustments from a conservation easement with the local tax assessor who may or may not understand conservation easements.  A "land trust" and a "land conservancy" are the same types of organizations and only differ in name.
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