Save your sanctuary forever and maybe taxes, too
Many Backyard Wildlife Sanctuary (BWS) managers ask,
or make incorrect assumptions, about the legal status accorded their
efforts through this Washington Department of Fish and Wildlife (WDFW)
program. BWS certification does not provide your property with any
new or different legal protections or restrictions. Your natural landscaping
efforts may help with property appreciation value, and a displayed
certification sign can draw the attention of potential buyers also
interested in wildlife. But there’s nothing in the program that
ensures your sanctuary is maintained.
There are, however, some options for preserving your
hard work – and local wildlife homes – into perpetuity,
and possibly even ways to save on taxes. BWS certification won’t
guarantee that your property will qualify, but these are worth looking
into:
Land Trusts
Land trusts are local, regional, or
statewide non-profit organizations directly involved in protecting
important land resources for public benefit. Depending on the size
and extent of your backyard wildlife sanctuary, your property could
be considered such a resource.
Land trusts are able to use a variety
of flexible and creative conservation methods that achieve conservation
goals while meeting the specific needs of the community and landowner.
Many approaches offer income, estate, or property tax benefits, including:
Donation — An outright donation of land to a willing
land trust releases the landowner from the responsibility of managing
the land can can provide substantial income tax deductions and estate
tax benefits, while avoiding any capital gains taxes that would have
resulted from selling the property. Some land donations, such a charitable
gift annuities and charitable remainder annuities, allow landowners
to continue to receive income during their lifetimes.
Bargain Sale of Land – In a bargain sale the landowner
sells the land for less than its fair market value to gain several
benefits, including cash provisions, avoidance of some capital gains
tax, and entitlement to charitable income tax deductions (based on
the difference between the land’s fair market value and its
sale price).
Conservation Easement – A conservation easement is a
legal agreement between a landowner and the land trust that permanently
limits use of the land in order to project its conservation values.
It allows the landowner to continue to own and use the land and to
sell it or pass it on to heirs. Conservation easements are flexible
land protection tools. An easement on property containing rare wildlife
habitat might prohibit development, for example, while another one
might allow continued farming the building of agricultural structures.
A conservation easement donation can qualify as a tax-deductible charitable
donation and may result in property and estate tax savings. Whether
donated during the landowner’s life or by will, it can make
a critical difference in the heirs’ ability to keep the land
intact.
To find out more about how land trusts work and if there is land trust
in your area, contact the Land Trust Alliance of the Northwest, (http://www.lta.org/regionallta/northwest.htm)
3517 NE 45th St., Seattle, WA 98105-5640, 206-522-3134, or email ltanw@lta.org.
Public Benefit Rating Systems
(PBRS)
Incentive programs for preserving open
space on private property are offered by some counties and local jurisdictions
through Public Benefit Rating Systems (PBRS). These programs provide
tax relief to the landowner if their land contains valuable open space
resources. It works this way: a “current use taxation”
property tax assessment for the open space is established lower than
the “highest and best use” assessment level that usually
applies on most land in the county. The calculation of the current
use taxation value is based on a PBRS scoring system, with a number
of points assigned for specific open space qualification.
This system, established by the state under RCW Chapter 84.34, weights
the tax incentive toward particularly desirable open space features.
Individual jurisdictions usually adopt their own criteria to evaluation
the public benefit of the property. The rating systems usually includes
points of land qualifying as high, medium, or low property resources,
and bonus points for additional public benefit such as public access,
extra surface water buffer, joint applications, and conservation/historic
easements in perpetuity.
In King County, for example, the reduction in taxable value ranges
from 50% to 90% for the portion of the property in “current
use.” The maximum 90% tax reduction might be given for property
(or portions of property) qualifying as a high property resource with
public access and a conservation easement in perpetuity.
To find out more about the PBRS in your county of residence and how
you might apply for eligibility, call your county tax assessor.
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