LAND CONSERVATION NEWS 12/17/12
Issue Number 209
State Properties Commission approves tax credit appraisal review policies: On
December 11, the State Properties Commission approved several policies, including how
the SPC will review appraisals of conservation easements for tax credits. The policy can
be found at http://gspc.georgia.gov/policies.
The Tax Credit Policy, which becomes effective January 1, 2013, covers Definitions,
Purpose and the Policy Statement. Also included are attachments (the GA Conservation
Tax Credit, OCGA § 48-7-29.12, and an outline of SPC required items for the review).
The overarching policy is that to qualify for the tax credit, “the appraised value of a
donated conservation easement must be approved by the SPC.”
In an outline of the process, the landowner seeking the tax credit submits an application
and $5,000 fee to DNR. DNR certifies the conservation value and forwards to SPC the
following: (1) the appraiser’s affidavit; (2) the landowner’s statement of tax credit dollar
amount being applied for and the legal entity applying (individual, corporation or
partnership); and (3) the appraisal of the conservation easement. SPC “will make every
effort to review the CE appraisal within 90 days, depending on the reasonableness of that
appraisal.” The review appraiser submits a report to the SPC; if the review appraiser finds
that a revised appraisal is necessary, a blind copy of the issues in the review appraisal is
sent to the landowner, who can then submit a revised appraisal. Based on the results, SPC
will send a letter to DNR either approving the original appraisal or the revised appraisal
value or approving a separate amount. Acceptance by the SPC “does not suggest that the
report is also acceptable to the IRS or the Georgia Department of Revenue.”
The appraisal submitted to SPC must be a “qualified appraisal” as defined by the IRS.
The SPC recommends that the appraisal follow “Yellow Book” standards, in part because
SPC’s review will follow this format and level of detail.
Valuing Conservation Easements: A Guide for Georgia Tax Assessors: Tax assessors in
Georgia are generally one of three types: (1) knowledgeable about conservation easement
valuation and supportive of their use as a tool to help achieve community goals; (2)
knowledgeable but hostile to their use as a drain on the tax digest; and (3) not
knowledgeable about conservation easeents. Katie Sheehan and Laurie Fowler of the
Odum School of Ecology at UGA have recently published a guidebook on this important
subject that should bring more of Georgia’s tax assessors into the first category. The
guidebook includes basic information on conservation easements, a summary of Georgia
law for the ad valorem valuation of property, a hierarchy of valuation techniques for
conservation easement properties, inappropriate valuation techniques, and how to
evaluate a conservation easement.
The guidebook does acknowledge the State Properties Commission’s appraisal review
role (see above), stating: “If relying on a qualified appraisal to determine [Fair Market
Value], tax assessors can also take into account the SPC review of the private appraisal,
1
and may adjust FMV accordingly.” The guidebook, whose preparation was supported by
the Georgia Forestry Commission, may be downloaded from:
http://www.rivercenter.uga.edu/publications/pdf/valuing_ce_guide2012.pdf
Upcoming in the new year: The Madison-Morgan Conservancy is sponsoring a Land
Stewardship Workshop Series on January 10, 17 and 24. Details to follow or for more
information, contact Chris McCauley at 706-342-9252 or cmcauley@mmcgeorgia.org.
Dates are not available at press time, but several events are worth putting on your radar
screen. In late January, the Land Trust Alliance – SE Regional Office will sponsor a
conversation with Sylvia Bates (LTA Director of Standards and Research) and Leslie
Ratley-Beach (LTA Conservation Defense Director). The topic will be amending
easements. In March, the Blue Ridge Forever land trust (western NC) will sponsor a
training session on conflict avoidance and resolution.
Speaking of Leslie Ratley-Beach: She writes: “Do you feel like tax cases are
burgeoning like summer zucchini? Court opinions from tax cases can be like a heavy bag
full that your neighbor hands you at the end of August. You don't know what to do with
them and the opinions pile high with more legal reasoning than you can hope to keep up
with. To assist you and the land trusts in your service area, the Land Trust Alliance
created a quick reference of What You Need to Know from Tax Court Cases, available at
http://tlc.lta.org/library/documents/34943. We hope that this summary is delicious and
digestible.”
Conference on Students as Conservation Catalysts: To be held at Colby College in
Waterville, Maine, on March 1, 2013. The conference will provide students, practitioners,
and scholars with the opportunity to network with, and learn from, peers and leading
experts from North America and beyond working in the field of large landscape
conservation. For additional information: www.colby.edu/landscapeconservation
Changes
Rachael Fowler, the co-chair of The Garden Club of Georgia’s Roadside
Beautification Committee, passed away on December 13. She was a skilled and
often successful opponent of the Georgia Department of Transportation and their
plans to let the billboard companies cut publicly-owned trees in front of
billboards. She was also an active representative of the Garden Club of Georgia
on the Georgia Water Coalition.
Job Opening
The Piedmont Environmental Council is seeking to hire a conservation officer to
conduct PEC’s land conservation activities in Culpeper and southern Fauquier
counties in Virginia. Interested applicants should email, mail or fax a letter and
resume to: Dawn Wilmot, Executive Assistant, Piedmont Environmental Council,
P.O. Box 460, Warrenton, VA 20188. Phone (540) 347-2334; Fax (540) 349-9003
Email: dwilmot@pecva.org. Web: www.pecva.org
2
Year-end appeal: Land Conservation News is sent to 225 subscribers including land
trust leaders, government agency personnel, business interests and key collaborators. The
primary goal of the newsletter is to provide you with useful information – that is, timely,
accurate and informative. The newsletter is sent out as news warrants, an average of
twice a month. There is no subscription fee but contributions are greatly appreciated. Just
send a check to the Georgia Land Conservation Center at 380 Meigs Street, Athens, GA
30601. Thank you!
Happy holidays!
Land Conservation News is a periodic communication produced by the Georgia Land Conservation
Center for land trust leaders and others who care about the future of open space in Georgia. To subscribe or
to contribute news items, please contact Hans Neuhauser at the Georgia Land Conservation Center: 706546-7507 or hans@galandcc.com
3