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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | January 9, 2015 11:30 AM |
|---|---|
| From: | Senator Charles T. McIlhinney, Jr. |
| To: | All Senate members |
| Subject: | Memo #1 Exemption of Transfer Tax - Conservation Easements |
| Recently the Pennsylvania Department of Revenue ruled that the grant of a conservation easement by a landowner to East Rockhill Township is subject to the Realty Transfer Tax. The conservation easement named East Rockhill Township as the grantee. The broad scope of this decision could have the effect of transfer taxes being imposed on many of the conservation easements, that up to now, have not been found subject to transfer taxes. This decision has a chilling effect on future land preservation efforts. Current tax law provides for exemptions from payment of transfer tax to a conservancy which possesses a tax-exempt status pursuant to section 501(c)(3) of the Internal Revenue Code and has it primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities. As political subdivisions are not 501 (c)(3) organizations, the Board of Appeals held that transfers of conservation easements to Townships are not tax exempt transfers. Therefore, I am introducing legislation to amend the Tax Reform Code to clearly state that transfers of conservation easements to municipalities are exempt from payment of the realty transfer tax. I invite you to join with me in cosponsoring this important legislation. Please contact Gail Paduch Reinard (717)787-7305 of my staff if you have any question. |
Introduced as SB556