Putuxent Tidewater Land Trust

Patuxent Tidewater Land Trust

I am not in a position to donate the conservation easements on my property. Will the Land Trust purchase the easements?

Because of the limited resources available to most land trusts, they are rarely in position to purchase easements on properties. Do not expect a land trust to purchase your easements unless your property has unique characteristics that both motivate and enable the land trust to raise the necessary money. Such properties are rare.

That being said, most land trusts are familiar with programs that purchase easements. Land trusts also occasionally sponsor publicly- or privately-funded projects to purchase easements. If you would like more information, a land trust can evaluate what programs might apply to your property and tell you how to pursue such options and if land trust participation with the landowner is necessary or helpful.

To qualify for an easement purchase program, the property must meet very specific eligibility criteria. For example, in Maryland, farms wishing to sell easements to the Maryland Agricultural Land Preservation Foundation (MALPF) must comprise a minimum of 50 acres total contiguous property. Though an individual farm may be smaller, the total contiguous area applying to sell easements to the State must be 50 or more acres. The farm(s) must meet the soils criteria and commit the property not to be developed for five years. Then, the offer to sell easements to the State is competitive with others who are seeking to sell easements based on a priority system that ranks properties based on their relative conservation qualities and the landowners' relative willingness to accept below full market value for their easements.

If you decide to sell an easement for an amount that is less than its full value (this is considered a "bargain sale"), you may be able to take a charitable tax deduction for the difference between the fair market value and the amount received. As always, you should consult a knowledgeable tax advisor or attorney to determine the tax implications of easement sales. Claims for tax deductions must be supported by timely appraisals meeting the requirements of the taxing authorities.

The following links provide descriptions of the major easement purchase programs available in Maryland. Some programs do not allow the landowner to apply directly to sell easements, but rather require the landowner to qualify through a project undertaken by a sponsor organization.

Maryland Agricultural Land Preservation Program (MALPF).
Maryland Rural Legacy Program (RLP).
Maryland Conservation Reserve Enhancement Program (CREP).
Transportation Equity Act for the 21st Century (TEA-21).
Local Transfer of Development Rights Programs (TDRs).
Other Potential Sources of Money to Purchase Easements.

http://www.patuxent-tidewater.org/faqs04.html