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House of Representatives
Session of 2015 - 2016 Regular Session


Posted: September 21, 2016 11:04 AM
From: Representative Dan Moul
To: All House members
Subject: Realty Transfer Tax on Agricultural Easements
In the near future, I plan to introduce a resolution that will clarify recent changes made to the Tax Reform Code regarding the taxation of Agricultural Conservation Easements.

Until recently, the Department of Revenue has taken the position that agricultural conservation easements were not subject to the Realty Transfer Tax since they were not “true easements.” Unfortunately, a Tax Appeal decision in 2014 changes that long-standing practice and issued an opinion that found a conservation easement was subject to the Realty Transfer Tax (RTT). This decision cast doubt on whether other agricultural conservation easements would also be subject to the RTT.

In response, the tax code portion of this year’s budget added language to specifically exempt agricultural conservation easements from the RTT. Unfortunately, the new language did not include a retroactive effective date. As a result, agricultural conservation easements from the past few years could still receive an RTT assessed. My legislation will clarify that the RTT exemption for agricultural conservation easements applies retroactively to January 1, 2013. This will ensure that the RTT is not improperly assessed on agricultural conservation easements.

I ask you to join me co-sponsoring this important legislation.

Introduced as HB2370