DNR director speaks on tax break

December 29, 2007 at 03:19 PM

To the Editor:

The recent start-up of the Conservation Stewardship Program has prompted a great deal of interest among Illinois landowners. This program, created by the General Assembly through the passage of Senate Bill 17, gives some taxpayers the opportunity to pay lower property taxes on land that is managed to protect environmental resources on that land.

Many taxpayers who are interested in this program are concerned that if they fail to prepare a management plan by January 1, they cannot receive the tax benefits. The law that created the program does not include a deadline for submittal of plans and the Department of Natural Resources (DNR) has not imposed a deadline. It is important that a taxpayer’s management plan be submitted to DNR before property valuations for 2008 are determined in their county. I encourage taxpayers who are concerned about completing their plan in time to qualify for the special valuation to contact their county assessor’s office to learn when 2008 valuations will be set.

I also want to encourage taxpayers to carefully consider their tax situation before applying to enroll their property in the Conservation Stewardship Program. Many undeveloped lands are already assessed at lower values than they would be under this program. For example, taxes on forested land already enrolled in the Forestry Development Act Program (also known as Forest Stewardship Program) may already be of greater benefit than what would be offered in the Conservation Stewardship Program. Land currently assessed as farmland is not eligible for enrollment in the Conservation Stewardship Program. The assessed value of farmland is lower than can be provided under this new program.

Staff at DNR are working to quickly complete review of management plans received and to notify the Department of Revenue when plans are accepted. Landowners can help us handle this new program as efficiently as possible by preparing and submitting conservation plans through the on-line application system and by sending any questions to DNR by e-mail. We will, of course, also accept printed applications and respond to phone calls or other inquiries.

Information about the Conservation Stewardship Program, application materials and an address for questions are available on the DNR web site at http://www.prairiestateoutdoors.com/index.php?URL=http%3A%2F%2Fdnr.state.il.us%2FStewardship%2Findex.htm .

Sincerely,
Sam Flood Acting Director Illinois Department of Natural Resources

Tax break for conservation

Sunday, December 16, 2007

Grasslands, wetlands and timber are no longer "junk ground" in Illinois.
Quite to the contrary. As more people search for land on which to hunt or recreate, the price of once marginal ground has increased dramatically.

Unfortunately, as land prices have soared, so has interest from the Illinois Department of Revenue. The state's tax department is actively seeking to increase property tax assessments and Fulton County is among a handful of Illinois counties where tax rates on "idle land" have already gone up dramatically.

To help protect undeveloped grasslands, wetlands and timber, the state passed the Conservation Stewardship program this spring. The law offers tax incentives for landowners with 5 or more acres who follow conservation plans designed to maintain quality wildlife habitat.

Many in the conservation world breathed a sigh of relief when the law passed, since there were fears that rising tax rates would cause widespread conversion of habitat into farmland. After all, if having a few trees on a piece of ground makes it more expensive to own, wouldn't it make sense to bulldoze those trees?

In theory the law makes such thinking less likely and coverage is also extended to wetlands and prairies - ground not previously covered by forestry tax incentives. Also, unlike the forestry tax incentives, owners of timber ground are not required to harvest or plant trees under CSP.

All of which sounds good. But word of CSP has been slow to spread and confusion is widespread. While the Department of Natural Resources received a handful of applications this past week, many landowners are unaware of the tax changes, due in part to squabbling between state offices that delayed release of rules until last week.

Even with the publication of those rules, there's considerable confusion. For instance, there's no consensus about a deadline for enrollment.

"There's no deadline in the law or the rules and we will accept plans at any time," said Glen Kruse, who works in DNR's office of resource conservation. "But the perceived deadline is apparently based on the idea that assessors will be headed out Jan. 1 to see properties and to assess their values.

"If there is a deadline, it's one that will be set by your county assessor."

All of which could be significant if you are a landowner with timber, grasslands or wetlands. Under CSP, those acres will be taxed at 5 percent of fair-market value - given that they are properly managed under an accepted plan.

As things stand in parts of Illinois - including Fulton, Menard, Jackson, Sangamon and Williamson counties - those same acres are presently being taxed at 33.3 percent of fair-market value.

Not everyone will save under CSP, though. If your land is currently assessed as farmland or is currently enrolled in the federal Conservation Reserve Program, your taxes would actually increase under the new program.

As always, knowledge is power. Contact your tax assessor before making any changes. Ask questions.

"I've talked to several people in Peoria County in the past week and told them that the program would not help them," said Tom Schwartz, whose Wildlife Management Solutions company can help landowners meet plan criteria. "The Conservation Stewardship Program is not for everyone."

In Fulton County that's less likely. In fact, Schwartz is hoping to hold an open seminar for landowners sometime in January.

"Those people have already seen their idle land valued at 33.3 percent of fair-market value," Schwartz said. "They've been hit hard."

The new law is also very significant for prospective buyers of recreational ground. As Schwartz said, "Across the state, anyone who has that type of land and sells their property after Oct. 1, 2007, the new owner is going to be subject to 33.3 percent of fair-market value."

With per-acre taxes being pared from $75 to $11 in many common cases, enrollment in CSP could be a determining factor in the feasibility of buying recreational property.

JEFF LAMPE is Journal Star outdoors columnist. Write to him at 1 News Plaza, Peoria, IL 61643, call (309) 686-3212 or e-mail jlampe@pjstar.com