Conserve Land

What is a Conservation Restriction (CR)?
With a Conservation Restriction a landowner sells or donates the development rights of a specific parcel of land to a nonprofit organization or a government agency, to be held in trust. Development on that land is thereby prohibited. Some uses such as farming or timber harvesting may be allowed if specifically written into the CR. The restrictions of a CR are binding on the future owners of the property.

Example: In the case of a forest, the land might have an overall monetary value if developed “to its potential.” If not developed, the land is usually valued for less. The difference between these two valuations is the value of the development rights. The important point is “to its potential.” A parcel with very limited development potential due to wetlands will not have as great a valuation as a parcel with high ground and extensive frontage on an existing road. Usually an appraisal is done to determine the current value of the land and the value after a Conservation Restriction is applied.

Some landowners donate the CR valuation, taking a charitable deduction, while others might sell the CR valuation. In both circumstances, a CR can lower property taxes because the overall taxable value of the property has declined. Since federal and state laws change from year to year, it’s important to work with a lawyer knowledgeable in land preservation.