HOUSE OF REPRESENTATIVES

H.B. NO.

2800

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to conservation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that there is a heightened need to protect agricultural lands from the residential, commercial, and industrial expansion that has become a theme across the State.  This Act dedicates a portion of the conveyance tax collected through the legacy land conservation program to purchasing easements across, or fee title to, lands that support or enhance the conservation of important agricultural lands.

     Also, in order to preserve agricultural lands for their agricultural, recreational, educational, habitat, open space, and historic value, this Act provides tax incentives for donations of easements to access important agricultural lands.

     SECTION 2.  Chapter 173A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§173A-     Contiguous agricultural lands; easements; important agricultural lands; tax deduction; ad-valorem tax.  (a)  The donor of an easement under section 173A-4(d) shall be entitled to one hundred thirty per cent of the value of the easement in income tax deductions.  The donor may take the deduction over the donor's lifetime; provided that:

     (1)  The deduction may not exceed forty per cent of the donor's adjusted gross income in any year in which this deduction is taken except as specified in paragraph (2);

     (2)  The donor may take a one-time deduction equal to seventy per cent of the donor's adjusted gross income; and

     (3)  Except as provided in this section, the balance of any unused deduction may be taken in subsequent tax years until exhausted.

     (b)  For the purposes of any state or county tax related to the ad-valorem tax value of a donated easement under this section, the value of the easement shall be reduced to five per cent of the negotiated value of the easement under subsection (c) or any subsequent tax appraisal.  The reduction in the ad-valorem tax value of the donated easement shall be perpetual and run with the land.  Any county tax appraisal of the donated easement may be conducted not more than once every twenty years.

     (c)  For the purposes of this section, the value of the donated easement shall be determined through negotiations based on appraisals in subsection (d) between the donor and the commission.

     (d)  Notwithstanding any other law or provision in this chapter to the contrary, the commission shall pay for three appraisals of any prospective donated easement that shall be conducted pursuant to the uniform standards of professional appraisal practice.  The average of the three appraisals shall be considered the value of the donated easement."

     SECTION 3.  Section 173A-4, Hawaii Revised Statutes, is amended to read as follows:

     "§173A-4  Authority to acquire and convey.  (a)  In consultation with the senate president and speaker of the house of representatives, the board may acquire, by purchase, gift, or the exercise of the power of eminent domain as authorized by chapter 101, any land having value as a resource to the State.  Such acquisition is hereby declared to be for a public use.

     (b)  The board may, subject to chapter 171, in consultation with the senate president and speaker of the house of representatives, and with the approval of the governor, sell, lease, or otherwise convey any such land subject to terms and conditions that it deems appropriate and that will ensure that the transferee shall not use the land in a manner that is inconsistent with the purposes for which it was acquired by the board.  The terms and conditions shall run with the land and shall be binding on the transferee's heirs, successors, and assigns.  The board may seek enforcement of the terms and conditions in any court of appropriate jurisdiction.

     (c)  The board may, in consultation with the senate president and the speaker of the house of representatives, require as a condition of the receipt of funds that state, county, and nonprofit land conservation organizations receiving funds under this chapter provide a conservation easement under chapter 198, or an agricultural easement or deed restriction or covenant to an appropriate land conservation organization or county, state, or federal natural resource conservation agency, that shall run with the land and be recorded with the land to ensure the long-term protection of land having value as a resource to the State and preserve the interests of the State.

     (d)  In consultation with the president of the senate and the speaker of the house of representatives, the board may acquire by purchase or gift, agricultural easements across lands contiguous to important agricultural lands identified pursuant to chapter 205, that are necessary for the preservation of important agricultural lands; provided that the purchase of the lands or easements is paid from the funds collected under section 247-7(b).

     The commission shall require donors of gifts of easements to agree to development restrictions prescribed by the commission before accepting the donation."

     SECTION 4.  Section 173A-5, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (d) to read:

     "(d)  For funds deposited under section 247-7, [The] the appropriate percentage identified under section [247-7] 247-7(a)(1) of all taxes imposed and collected under chapter 247, and the appropriate amount collected under section 247-7(b), shall be deposited in or credited to the fund every fiscal year."

     2.  By amending subsection (h) to read:

     "(h)  The fund shall be used for:

     (1)  The acquisition of interests or rights in land having value as a resource to the State, whether in fee title or through the establishment of permanent conservation easements under chapter 198 or agricultural easements;

     (2)  The payment of any debt service on state financial instruments relating to the acquisition of interests or rights in land having value as a resource to the State;

     (3)  Annual administration costs for the fund, not to exceed five per cent of annual fund revenues of the previous year[[]; [and]]

     (4)  Costs related to the operation, maintenance, and management of lands acquired by way of this fund that are necessary to protect, maintain, or restore resources at risk on these lands, or that provide for greater public access and enjoyment of these lands; provided that the costs related to the operation, maintenance, and management of lands acquired by way of this fund do not exceed five per cent of annual fund revenues of the previous year[.]; and

     (5)  The commission may expend moneys in the fund collected pursuant to 247-7(b) to purchase lands or easements under section 173A-4(d)."

     SECTION 5.  Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

     "§247-7  Disposition of taxes.  (a)  All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that, except for subsection (b), of the taxes collected each fiscal year:

     (1)  Ten per cent shall be paid into the land conservation fund established pursuant to section 173A-5;

     (2)  Twenty-five per cent from July 1, 2009, until June 30, 2012, and thirty per cent in each fiscal year thereafter shall be paid into the rental housing trust fund established by section 201H-202; and

     (3)  Twenty per cent from July 1, 2009, until June 30, 2012, and twenty-five per cent in each fiscal year thereafter shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources in the following priority:

         (A)  To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;

         (B)  Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and

         (C)  The youth conservation corps established under chapter 193.

     (b)  Conveyance taxes collected from transactions under the legacy land conservation program in chapter 173A shall be held in a separate account and deposited into the land conservation fund under 173A-5; provided that the funds shall be identified and deposited separately from the funds deposited pursuant to subsection (a)(1)."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2009.

 

INTRODUCED BY:

_____________________________



 

Report Title:

Conservation; Important Agricultural Lands; Legacy Land Conservation Commission

 

Description:

Allows the legacy land conservation commission to acquire agricultural easements across lands contiguous to important agricultural lands to protect and conserve important agricultural lands.  The Act also provides tax incentives for easement donors.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.