Tax Benefits of Land Preservation

Property Taxes

The Michigan Public Act 446, obtained in December 2006, caps property tax reassessments for land restricted by a qualified conservation easement. Under this law, the taxable value of the property may not increase from one year t o the next by more than 5% or the increase in the consumer price index, whichever is lower. This eliminates the "pop-up tax" on conservation lands so that when the land passes to heirs or is sold to a new owner the property is not re-assessed.

Michigan assessors were directed by the Tax Tribunal and the Department of Treasury to "consider"  the reduction in a property's value when development potential has been permanently reduced. Property owners must talk with their local assessors and provide appraisals to request a reduction in property taxes.

Federal Income Taxes

Landowners may obtain charitable tax deductions on their Federal Income tax when a conservation easement id donated. The amount of the deduction will vary based on the current provisions for charitable deductions. Depending on the value of the donation this deduction may be carried forward into subsequent years.
To determine how land preservation would affect your local, state, and federal taxes, you should consult with your professional tax and legal advisors.