VIRGINIA DEPARTMENT OF TAXATION Virginia Department of Taxation Land Preservation Tax Credit Application Process Virginia Department of Taxation August.

Slides:



Advertisements
Similar presentations
Presentation on the Agreement on Import Licensing Procedures By Shashank Priya, Director, Department of Commerce.
Advertisements

Seekonk Board of Assessors
Interim measures in Russian courts in support of international arbitration: principles, procedure and the range of remedies available BRLA seminar 25 January.
WILLIAMSON ACT AND AGRICULTURAL CONTRACTS WILLIAMSON ACT AND AGRICULTURAL CONTRACTS Fresno County Board of Supervisors February 26, 2008.
Documenting Cash and In-Kind Match Project Director Training & Annual Meeting.
What is the Education Investment Incentives (EIIA) Act? The EIIA is designed to provide much needed relief for tuition paying parents, while also enhancing.
DCAA – WHO WE ARE and WHAT TO EXPECT
1 Tangible Property Tax Phase Out: Background Material Ohio Department of Taxation Presentation to: Local Government Officials January 25, 2010.
Montana Medical Care Savings Accounts MontGuide HR Revised January
An Introduction to Captive Insurance F. Hale Stewart, JD, LLM, CTEP, CWM, CAM Author of the book U.S. Captive Insurance Law Captiveinsuranceinfo.com
State Budget Update Scott Cummings Virginia Department of Planning and Budget 1.
Purchase of Agricultural Conservation Easements (PACE) A new program for Wisconsin.
The Department of Justice Division of Gambling Control Charitable Gambling Texas Hold’em Poker Tournaments North American Gaming Regulations Association.
Rail Freight Assistance Program (RFAP) S ETTING THE S TAGE FOR THE F UTURE Rail Transportation Assistance Program (Rail TAP) RFAC Meeting April 28, 2010.
Circular A-110 Everything You Didn’t Want to Know.
Patty Bartlett Logan County Treasurer / Public Trustee.
Large Scale Projects Aleksejs Šaforostovs LSP Project Manager Joint Technical Secretariat.
Basic Financial Requirements for DoD Government Contracting 2015 National SBIR/STTR Conference The views expressed in this presentation are DCAA's views.
Commission on Unemployment Compensation Sam Lupica, Acting Commissioner August 14, 2014 Status of the Unemployment Trust Fund and Related Issues.
SETTING THE PROPERTY TAX RATE Micki Rundell, CFO City of Georgetown TML Presentation June 5, 2015.
Schedule UTP Update July  Required for corporations that:  Issue or are included in audited financial statements that report reserves (U.S. GAAP.
Platting Update Orange County BCC January 27, 2015.
Budgeting in Minnesota A St. Cloud Perspective. Key Players in Budgeting - Responsibility to present budget to City Council - What role do you play? Clarify.
Community Development Department GRAND HAVEN DEVELOPMENT OF REGIONAL IMPACT City Council June 3, 2014.
Chapter 8 Conservation Easements 1. Conservation Easements Conservation easements come in varying forms and restrict property rights based on the particular.
Independent School Process Agency of Education State Board of Education Presentation March 25, 2014.
1 Food, Conservation, and Energy Act of 2008 (Farm Bill) Disclaimer: Provisions provided in this presentation are subject to change or interpretive differences.
Public Hearing August 30, 2014 Drive-Way Ordinance Please Sign in…
Effective Management and Compliance 1 ANA GRANTEE MEETING  FEBRUARY 5, 2015.
Joint Task Force on Local Effort Assistance September 25, 2002 Bill Freund, Consultant To The Task Force.
FASB Interpretation No. 48
UNIVERSITY GOVERNANCE: Where We’ve Been Where We Are Where We Need To Be.
Cash Handling and Funds Collection Policies and Procedures.
Leanne Emm, Associate Commissioner – School Finance Update League of Charter Schools Annual Finance.
Tools for Land Conservation Sarah Richardson, Land Conservation Coordinator Potomac Watershed Forum August 10, 2007.
Conversion Easement Exclusion Chapter 34 Tools & Techniques of Estate Planning Copyright 2011, The National Underwriter Company1 Incentive to private landowners.
Annual Training for County Election Officials NC State Board of Elections August 14, 2012.
Urban BMP Incentive Study (HJR 107) And Other Interesting Legislative Items Delegate David Bulova August 10, 2007.
MARCH 9, 2006 Boating Safety and Enforcement Grant Program Regulations Stakeholder Workshop Proposed Conceptual Regulations Department of Boating and Waterways.
EXPEDITED PERMIT PILOT PROGRAM STAKEHOLDER MEETING EXPEDITED PERMIT PILOT PROGRAM STAKEHOLDER MEETING Wednesday, September 13, 2006.
Community Development Department GRAND HAVEN DEVELOPMENT OF REGIONAL IMPACT Planning & Land Development Regulation Board May 21, 2014.
Board of County Commissioners PUBLIC HEARING June 8, 2010.
Simplifying the Dissolution Process California Department of Finance February 2015.
Presentation to Board June 17, 2008 Presented by: J. A. Sabo, Associate Director – Leading Services & Treasurer of the Board BUDGET York Catholic.
Residential Plats Orange County Board of County Commissioners August 19, 2014.
Private Preservation Protections: Preservation Easements.
Hands on Budgeting Wendy Watson April 18, Agenda Why and when to budget? Types of budgets Revenues Expenses Cost allocation Types of budget Reports.
After-the-Fact Conservation Area Impact Permit Request* Keene’s Pointe Community Association, Inc. District 1 November 1, 2011 *Postponed from the December.
Regional Planning CCRPC Board Training March 21, 2012.
S.B Municipality Fees. S.B – Environment Budget Reconciliation Bill Enacted during the 2011 regular legislative session and becomes effective.
Chapter 1 An Introduction to Taxation. Learning Objectives Discuss the history of taxation Differentiate between three types of tax rate structures Describe.
Assessed Value Changes. 2 Definitions Current Market Value Base Year Value Inflation Factor Factored Base Year Value Appraisal Unit.
Pre-tax Voluntary Contributions: Legal Issues Eric D. Swank Ice Miller One American Square Box Indianapolis, IN
BERNALILLO COUNTY PROPERTY TAX Tax Year Commission Request No Tax Increase to Operational Tax Rates No later than September 1 of each year, the.
Copyright © Texas Education Agency Accounting for Grant Funds, including Documentation for Expenditures.
PROFESSIONAL PAYROLL SKILLS & RESPONSIBILITIES BY CARMELA MILLER, CPP
WEST VIRGINIA INDUSTRIAL ACCESS ROAD PROGRAM West Virginia Economic Development Council January 27, 2016.
Chapter 1 An Introduction to Taxation. Learning Objectives Discuss the history of taxation Differentiate between three types of tax rate structures Describe.
1 Hearing to Discuss the Potential Interplay and Effect of the Money Available to States’ Low- Income Weatherization Programs under the American Recovery.
Welcome. Contents: 1.Organization’s Policies & Procedure 2.Internal Controls 3.Manager’s Financial Role 4.Procurement Process 5.Monthly Financial Report.
Community Crossings Matching Grant Fund Program Kathy Eaton-McKalip
Buckingham County Land Use Program Presentation
Standards & Practices: Ensuring Sound Transactions Standards 2 and 9: Compliance with Laws and Ensuring Sound Transactions Introduce myself Handouts Retention.
Education Employment Procedures Law of 2001
Accountability and Internal Controls – Best Practices
Municipal Net Profit Tax
Seekonk Board of Assessors
Navigating the Charter Renewal Process: Start to Finish
Navigating the Charter Renewal Process: Start to Finish
The PTA Audit, 990s, and Electronic Banking
Presentation transcript:

VIRGINIA DEPARTMENT OF TAXATION Virginia Department of Taxation Land Preservation Tax Credit Application Process Virginia Department of Taxation August 28, 2014 VIRGINIA DEPARTMENT OF TAXATION

Land Preservation Tax Credit (LPC) Virginia allows an income tax credit for 40 percent of the value of any land or interest in land located in Virginia that is conveyed in perpetuity for conservation purposes. The maximum amount of credits that may be issued in a calendar year shall not exceed $100 million. The Credit is transferrable for 10 years. Almost 90 percent of the land conservation in Virginia in the last decade was through the LPC. 2

VIRGINIA DEPARTMENT OF TAXATION Land Preservation Tax Credit (LPC) According to a JLARC report determined: “Virginia’s Land Preservation Tax Credit accounts for the vast majority of financial support for land conservation and is a stable cost efficient method of conserving land.” For the period , the LPC accounted for 87% ($901 million) of the state financial support for land conservation Virginia’s tax credit is among the largest when compared to the 14 other states that have land conservation tax credits 3

VIRGINIA DEPARTMENT OF TAXATION Land Preservation Tax Credit HB 1398 was passed during the 2013 session and subsequently amended by the Governor. Limits the maximum credits that may be issued during a calendar year to $100 million. Requires the Governor to make it a priority to include a recommended allocation in the introduced Budget Bill for land conservation and preservation grants to be distributed as follows: 80% to the Virginia Land Conservation Foundation. 10% to the Civil War Site Preservation Fund. 10% to the Virginia Farmland Preservation Fund. 4

VIRGINIA DEPARTMENT OF TAXATION LPC Donation History * Through August 15,

VIRGINIA DEPARTMENT OF TAXATION Applying for the Credit Make a qualifying donation (Fee Simple or Easement) Apply for the Credit – Submit application with copy of qualified appraisal – Applications are reviewed in the order received The credits are issued on a "first-come, first-serve basis" until the cap is reached. 6

VIRGINIA DEPARTMENT OF TAXATION Land Preservation Tax Credit (LPC) For donations made on or after January 1, 2007, the Department of Conservation and Recreation (DCR) must verify the conservation value of applications requesting $1 million or more in Land Preservation Tax Credits (LPC). TAX cannot issue the tax credits until DCR’s verification is complete. Credits are issued based upon the fair market value of the donation. The LPC application continues to be subject to a subsequent review or audit of the application. 7

VIRGINIA DEPARTMENT OF TAXATION LPC Application Process Once a completed application is received by TAX, it is processed and reviewed. Upon approval, TAX will issue the donor an LPC number assigned to that specific donation along with the approval letter. Once the approval letter is received, the taxpayer can use or transfer the credits. 8

VIRGINIA DEPARTMENT OF TAXATION LPC Review Process The Department reviews all LPC applications to assure overall compliance with the requirements of the Code of Virginia and IRS regulations. Since the LPC was enacted, over 3,200 qualifying donations have been made. The Department routinely selects about 10% of the approved applications for further review. 9

VIRGINIA DEPARTMENT OF TAXATION Review Process Over 95% of the LPC applications are accepted as filed. In cases where the value has been challenged, almost all have been settled through the administrative process without litigation. Since the tax credit was enacted in 2000, less than 3% of the donations have been challenged. 10

VIRGINIA DEPARTMENT OF TAXATION Review Process In some cases, TAX may secure it’s own appraisal before issuing tax credits: –TAX must notify donor within 30 days –Application is deemed not complete until the fair market value of the donation has been finally determined by the Tax Commissioner. –Tax Commissioner shall make a final determination within 180 days of notifying the donor unless the donor has filed an appeal. –The donor has the right to appeal any decision of the Department in accordance with the provisions of Chapter 18 (§ et seq.). 11

VIRGINIA DEPARTMENT OF TAXATION Fair Market Value Code of Virginia § C The fair market value of any property with respect to a qualified donation shall not exceed the value for the highest and best use (i)that is consistent with existing zoning requirements; (ii) for which the property was adaptable and needed or likely to be needed in the reasonably near future in the immediate area in which the property is located. (iii)that considers factors such as, by way of illustration and not limitation, slopes, flood plains, and soil conditions of the property; and (iv)for which existing roads serving the property are sufficient to support commercial or residential development in the event that is the highest and best use proposed for the property 12

VIRGINIA DEPARTMENT OF TAXATION How to Reduce Errors Review the statutes thoroughly to be aware of the requirements. – Code of Virginia § § – United States Internal Revenue Code § 170(e) Hire a well-qualified appraiser in your area. – Get references – Talk to someone familiar with your type of property Read the appraisal prior to submittal. Get guidance from Conservation foundations/groups. 13

VIRGINIA DEPARTMENT OF TAXATION LPC Customer Service Strategies Reach Out to Conservation Stakeholders. Expedite processing and review of LPC applications. Enhance Customer Service – Implement Application Tracking. – Establish goals for processing LPC applications. – Establish goals for securing second appraisals. – Establish goals for responding to written inquiries. – Establish goals for responding to phone inquiries Increase the visibility and access to LPC information. Add transparency to the LPC application process. Develop Online application process. 14