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2011 SESSION

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SB 1232 Land preservation tax credits; changes to procedures.

Introduced by: R. Creigh Deeds | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Land preservation tax credits.  Provides that the maximum amount of credits that may be issued in any calendar year by the Department of Taxation shall be $100 million plus any previously issued credits that have been disallowed or invalidated by the Department. The bill also allows the Tax Commissioner to have a second appraisal conducted on property for which an application for the credit has been made if he provides written notice to the donor within 30 days of the application being filed, and requires that the Tax Commissioner make a final determination within 180 days of such notice.

SUMMARY AS PASSED SENATE:

Land preservation tax credits; changes to procedures.  Provides that if the Tax Commissioner gives written notice to a donor of land determining that a second appraisal of the donation is warranted, then the application for land preservation tax credits shall not be deemed complete until the fair market value of the donation has been finally determined by the Tax Commissioner.

SUMMARY AS INTRODUCED:

Land preservation tax credits; changes to procedures. Requires the use of a licensed transfer agent to transfer a land preservation tax credit to a taxpayer who is not an individual. Transfer agents would be licensed by the Department of Taxation. The bill provides licensing requirements for transfer agents. The bill allows the Tax Commissioner to revoke or suspend the license of, or impose a monetary penalty upon, any transfer agent who repeatedly transfers land preservation tax credits that are subsequently disallowed in whole or in part by the Department.

The bill also allows the Tax Commissioner to require a second appraisal from a different appraiser to substantiate the fair market value of any donation of land. If the fair market value of the donation indicated by the second appraisal is less than 85 percent of the fair market value indicated by the first appraisal submitted by the donor, the Department may issue tax credits in accordance with the second appraisal.