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Minnesota Land Trust <br />Conservation Easements and Appraisals <br />Introducfron <br />A conservation easement is a set of land use restrictions a landowner voluntarily places on his or <br />her property in order to preserve the land's unique natural features and characteristics. These <br />rights are conveyed by the landowner to a land trust or other conservation easement holder. <br />Protecting these natural qualities provides important benefits to the community-protecting <br />wildlife habitat, preserving water quality, and maintaining scenic vistas. Although the owner <br />retains most ownership rights, conservation easements limit the use and development of the <br />property in order to conserve the identified conservation values. <br />Most conservation easements-including all of those held by the Minnesota Land Trust-are <br />perpetual. <br />By permanently restricting property, a landowner has reduced the land's value. This reduction in <br />value can be attributed to the conservation easement. An appraisal estimates the value of a <br />conservation easement by calculating the impact of the easement on the value of the subject <br />property. <br />The discussion below addresses several of the basic questions and rules regarding conservation <br />easement appraisals. Please be aware ihax there have been a number of recent changes to the <br />easement appraisal rules. For more precise detail on rules regarding conservation easement <br />appraisals, please refer to the resources listed below. <br />What is the purpose of an appraisal of a conservation easement? <br />A conservation easement appraisal may have several uses. For charitable contribution purposes, <br />the appraised value of the easement is used to determine the amount of any income tax deduction <br />available. In this case, the appraisal procedure and report must conform to specific IRS <br />standards noted below. <br />An appraisal may also be important for estate planning or in reviewing value for property tax <br />purposes. Additionally, while the Minnesota Land Trust does not routinely purchase <br />conservation easements, an appraisal may be used to substantiate the purchase price in such a <br />situation. <br />