Can granting an easement reduce an owners property tax?
Property tax assessment usually is based on the property’s market value, which reflects the property’s development potential. If a conservation easement reduces the development potential of the property, it may reduce the level of assessment and the amount of the owner’s property taxes. This is unlikely if the property is already valued with a preferential tax assessment which relates to farmland or open space and woodland use. However unlike these preferential tax assessments, a conservation easement is a permanent preservation method and as such would not be subject to any roll-back taxes, as the land use will not change. The actual amount of property tax reduction, if any, depends on many factors. State law and the personal attitudes of local officials and assessors may influence or determine the decision to award property tax relief to easement grantor.
