PURCHAED EASEMENT BASICS:
WHO HAS FUNDS TO PURCHASE A CONSERVATION EASEMENT?
Baltimore County Planning Department - Administers the Maryland Agricultural Land Protection Program (MALPF)., and the Baltimore County Agricultural Protection Program.
Piney Run Rural Legacy Area –The Land Preservaiton Trust administers the Piney Run Watershed Rural Legacy Area.
HOW DO PURCHASED EASEMENTS WORK?
Competitive Process – property owners compete with other properties in the area, Local Land Trusts and Baltimore County compete with other areas at the state or federal level for funding. The more interest that Baltimore County has in easement programs, and the more easements are completed here the better the chance to obtain additional funding.
Price – Rural Legacy is based on a formula. The maximum payment under the formula can not exceed 70% of the fair market value of properties in the area. Points are awarded based on the number of development rights on the property, the productive characteristics of the property, and water quality protection. Agricultural easements are generally based on an appraised value of the easement (again can be no greater than 70% of the fair market value) and property owners are asked to “discount” the purchase price.
Taxes on the Proceeds of Purchased Easements – you generally do pay capital gains tax on the payment for your easement.
Timing – purchase easement require approvals by several agencies. Maryland Agricultural Preservation Easements are on a two-year application cycle. Purchase of a MALPF easement takes at least 18 months from the date of the application.
Rural Legacy Easements can generally be completed in less than one year from the time that you sign an agreement of sale.