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House
Bill 1353
Increasing
Accountability and Oversight of Conservation Easement
Tax Credits
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The
drafting of HB 1353 was guided by the Colorado
Conservation Easement Tax Credit Task Force, led by
Representative Alice Madden and Senator Jim Isgar. The
task force, which met in late 2007, included legislators,
landowners, state and local officials, and land trusts.
The task force worked to supplement reforms enacted
last year in HB07-1361, which increased the standards,
transparency and accountability for conservation easements.
HB 1353 will provide another layer of assurances that
landowners and land trusts or other holders of conservations
easements are appropriately protecting property and
accurately assessing the value of conservation.
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HB
1353 will increase accountability and oversight
of the state's conservation easement tax credit program
through five main components.
1. Increase
accountability for conservation easement appraisals
Appraisers
are required to submit conservation easement appraisals
to the Colorado Division of Real Estate. The appraisals
will be accompanied by an affidavit signed by the appraiser
noting certain requirements have been met. The Division
will review the information and the Board of Real Estate
Appraisers will impose suspensions or other penalties
if the Division finds wrongdoing. The Board also will
establish education and experience requirements for
all appraisers who complete a conservation easement
appraisal for a state income tax credit.
2. Certify
conservation easement holders (i.e. state, local governments
and land trusts)
The
Division of Real Estate and a newly formed Conservation
Easement Oversight Commission will develop a certification
program for entities that hold conservation easements.
The Commission will establish qualifications for certification
and will review at an entity's process for approving
an easement, its system of governance and its financial
stability. Only landowners who work with a certified
entity can qualify for the tax credit.
3. Strengthen
oversight and enforcement of the state tax credit
The
Department of Revenue will be authorized to share information
with other state agencies that have relevant expertise,
as well as with the Conservation Easement Oversight
Commission, to ensure that it has the resources to address
any concerns about information contained in a tax credit
application. Taxpayer confidentiality will be maintained.
4.
Create a Conservation Easement Oversight Commission
This
Commission will advise the Division of Real Estate and
Department of Revenue and, along with the Division of
Real Estate, administer the easement holder certification
program. The Commission will have nine members with
representatives from: Great Outdoors Colorado, the Colorado
Department of Natural Resources, the Colorado Department
of Agriculture, a local land trust, a state or national
land trust, a local government open space or land conservation
organization, an historic preservation group, a certified
general appraiser with conservation easement experience
and a landowner who has donated a conservation easement.
5.
Create a one-year holding requirement
Mirrors
the IRS limitation on the value of a qualified conservation
contributions for property held less than one year."
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