Virginia Land Preservation Tax Credit 2011 Statutes By Land Conservation Concepts, Inc.

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"No man's life, liberty or property are safe while the Legislature is in session." Gideon J. Tucker, 1866

Following are descriptions of 2011 legislative changes to the Virginia land preservation tax credit program, and links to 2012 and 2010 changes. Bill names link to history in Legislative Information System. Links will open in a separate window.

Senate Bill 979, as introduced by Whipple, proposed to decrease from $1 million to $500,000 the tax credit value threshold at which the conservation value of a donation must be verified by the Department of Conservation and Recreation. As enacted, Whipple's bill expands the scope of the Department of Conservation and Recreation's annual report to the House Appropriations and Finance Committees and the Senate Finance Committee to include "information, when available, on riparian buffers, both vegetated/forested buffers and no-plow buffers, required by deed restriction on land qualifying for credits in order to protect water quality." The final bill also changes a "(i)" to a "(a)" and a "(ii)" to a "(b)", respectively.

Senate Bill 1153 as introduced by Quayle and enacted, provides that a taxpayer's land preservation tax credit shall not be reduced by the amount of unused credit that could have been claimed in a prior year by the taxpayer but was unclaimed.

Senate Bill 1232, as introduced by Deeds, combined elements of Senate Bill 1087 and House Bill 1820 into one bill. As enacted, Deeds' bill adds back into the approximately $100 million/year cap for land preservation tax credit issuance those credits previously issued against the cap and subsequently disallowed or invalidated by the Department of Taxation. This bill further establishes a procedure for Taxation to deem an application for the issuance of land preservation credits incomplete until the Tax Commissioner makes its own determination of the donation's fair market value. Taxation has thirty days from application receipt to notify the donor of its determination that a second appraisal is warranted, and 180 days from that date to complete its determination unless the donor files an appeal. Lastly, this bill adds the word "complete" to stipulate that the tiebreaker for applications received simultaneously (earliest recordation date) applies only to complete applications. In its 2011 Legislative Summary, Taxation asserts that this bill has "no impact on TAX's authority to audit credits after issuance under Va. Code § 58.1-512(D)(6) or on the current procedures for administrative and judicial review of contested assessments." In other words, Taxation retains the right to audit credits after issuance, even if it has exercised its right to make its own determination of the donation's fair market value before issuing the credits.

Senate Joint Resolution 335, as introduced by Whipple and enacted, directs the Joint Legislative Audit and Review Commission to study long-term dedicated funding sources for land conservation.

House Bill 1715, as introduced by Wilt and enacted, changes the parties to whom persons recording conservation easement deeds are required to send certified copies thereof.

House Bill 1820, as introduced by Ware, empowered the Department of Taxation to request a second appraisal to be done at its own expense for donations yielding more than $1,000,000 in credits, and stipulated a reconciliation process for the two appraisals if the donation values differed. If Taxation requested a second appraisal, the credit application was not to be deemed complete until that appraisal was completed. This bill also required that any credits "disallowed or invalidated" by Taxation be added back into the capped amount for credit issuance. Lastly, the bill proposed to permit the executor or administrator of an estate to sell or transfer a decedent's tax credits, which currently expire with the owner. As enacted, this bill mirrors Senate Bill 1232, and excludes the relief proposed for decedents and their heirs. In its 2011 Legislative Summary, Taxation asserts that this bill has "no impact on TAX's authority to audit credits after issuance under Va. Code § 58.1-512(D)(6) or on the current procedures for administrative and judicial review of contested assessments." In other words, Taxation retains the right to audit credits after issuance, even if it has exercised its right to make its own determination of the donation's fair market value before issuing the credits.

House Bill 2167, as introduced by Abbitt and enacted, authorizes the Department of Conservation and Recreation to negotiate a land exchange to trade part of the controversial Biscuit Run State Park in Albemarle County for 36 acres of privately owned land located within the park (possibly including a life estate). According to press reports, the 36 acre donut hole located inside the recently-acquired state park is zoned for 100 homes.

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