REPORT TITLE:
Property Tax; Easements


DESCRIPTION:
Requires counties to recognize the diminished market value of
properties where a conservation easement has been granted and is
eligible as a charitable deduction for qualified conservation
contributions under section 170(h), Internal Revenue Code.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           123
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO COUNTY PROPERTY TAX ASSESSMENTS.



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

 1      SECTION 1.  The legislature finds that it is in the public
 
 2 interest to protect and maintain conservation lands in perpetuity
 
 3 for Hawaii's future generations.  The legislature further finds
 
 4 that pursuant to article VIII, section 6 of the state
 
 5 constitution, the legislature may enact laws of statewide concern
 
 6 to be administered by the counties.
 
 7      The purpose of this Act is to require the counties to
 
 8 recognize conservation easements when assessing the value of real
 
 9 property, when the easement has been conveyed pursuant to section
 
10 170(h) of the Internal Revenue Code of 1986, as amended.
 
11      SECTION 2.  Chapter 46, Hawaii Revised Statutes, is amended
 
12 by adding a new section to part V to be appropriately designated
 
13 and to read as follows:
 
14      "�46-    Conservation easements; diminished market
 
15 valuation.  For the purposes of property tax assessments, the
 
16 various counties shall recognize the diminished market valuation
 
17 of properties over which a conservation easement has been created
 
18 by written agreement or conveyance; provided that the easement
 
19 fulfills the requirements for a charitable deduction under
 

 
Page 2                                                     
                                     S.B. NO.           123
                                                        
                                                        

 
 1 section 170(h) of the Internal Revenue Code of 1986, as amended."
 
 2      SECTION 3.  New statutory material is underscored.
 
 3      SECTION 4.  This Act shall take effect upon its approval.
 
 4 
 
 5                           INTRODUCED BY:  _______________________