A Primer on Conservation Easements
1. In Texas, what is the percentage of land in private ownership?
97%
2. In 1950, what percentage of Texans lived in cities?
25%
What was that percentage in 1998?
80%
3. What are 6 types of land eligible for conservation easements?
1. Ranch land
2. Prairie
3. Rice farms
4. Community gardens
5. Wooded acreage
6. Wetlands
4. What is a conservation easement?
A restriction landowners place on their property, similar to a permanent deed restriction, which restricts most development and protects the conservation value of the property.
5. Where are conservation easements recorded?
In the county where the property is located
6. Do the restrictions in a conservation easement only apply to the current landowner?
No, the restrictions apply to the current landowner as well as all future landowners
7. What are the three types of tax considerations that can be affected by a conservation easement?
Two federal, one state:
Federal taxes may include (1) income taxes which relate to level of income and the reduction in fair market value of the property and (2) estate or gift taxes.
(3) State taxes may include a reduction or maintaining a low value for ad valorem taxes (school property taxes)
8. Which tax considerations are not included in an Agricultural use valuation or self-imposed deed restrictions ?
They do not provide federal income or estate tax benefits
9. How high can estate taxes be?
Estate taxes can be as high as 50% of the value of a property.
