<div class="chunk-title">Sec. 58-77. - Appraisal policyâ€”Tax code and appraisal requirements.</div>
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            <p class="incr0">
               (a)
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               Soil and Water Conservation District shall inform each landowner by letter of the
               tax code and appraisal requirements relevant to the transaction, and also that the
               Soil and Water Conservation District will not knowingly participate in transactions
               where it has significant concerns regarding a tax benefit claimed by the landowner.
               Two signed originals of the letter shall be sent to the landowner, with the request
               that one of the originals signed by the landowner be returned to Soil and Water Conservation
               District before Soil and Water Conservation District accepts the donation of any interest
               in real property.
               </p>
            		
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               (b)
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               A Uniform Appraisal Standards for Federal Land Acquisitions ("yellow book") certified
               appraiser who has also been certified as a conservation easement appraiser shall be
               hired to perform these appraisals. He or she shall be capable of producing an IRS
               qualified appraisal if applicable. To seek a federal income tax deduction the landowner
               (not Soil and Water Conservation District) must obtain what the IRS terms a "qualified"
               appraisal of the value of the donated conservation easement, conducted by a "qualified"
               appraiser who follows Uniform Standards of Professional Appraisal Practice (USPAP).
               </p>
            		
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               (1)
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            <p class="content2">
               Section 1.170A-13(c)(5)(i) of the Treasury Regulations defines a "qualified appraiser"
               as a person who:
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               a.
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               Holds himself or herself out to be an appraiser or performs appraisals on a regular
               basis;
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               b.
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               Because of his or her qualifications, is qualified to make appraisals of the type
               of property being valued;
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               c.
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               Is not an excluded individual, e.g., the donor or related party to the donor; and
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               d.
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               Understands that an intentionally false overstatement of property value may subject
               him or her to a penalty for assisting in an understatement of tax liability.
               </p>
            		
            <p class="incr1">
               (2)
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            <p class="content2">
               A "qualified appraisal," as defined in Treasury Regulation Â§ 1.170A-13(c)(3), is an
               appraisal which:
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               a.
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               Is made no earlier than 60 days prior to the date of contribution;
               </p>
            		
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               b.
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               Includes certain information, which is described below;
               </p>
            		
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               c.
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               Is prepared, signed and dated by a "qualified appraiser"; and
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               d.
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               Does not involve a prohibited appraisal fee, such as a fee based on the percentage
               of the valuation.
               </p>
            		
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               (3)
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               A "qualified appraisal" must include the following information:
               </p>
            		
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               a.
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               A description of the property in sufficient detail to determine that the property
               appraised was the property donated;
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               b.
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               The physical condition of the property;
               </p>
            		
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               c.
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               The date (or expected date) of donation;
               </p>
            		
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               d.
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               The terms of any agreement or understanding entered into (or expected to be entered
               into) by the donor that relates to the use or sale of the donated property;
               </p>
            		
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               e.
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               The name, address and identifying number of the qualified appraiser. Note that often
               two ID numbers can be required: the appraiser's social security number and the employer's
               ID number;
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               f.
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               The qualifications of the qualified appraiser;
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               g.
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               A statement that the appraisal was prepared for income tax purposes;
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               h.
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               The date on which the property was appraised;
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               i.
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               The appraised fair market value on the date (or expected date) of contribution;
               </p>
            		
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               j.
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               The method of valuation used to determine fair market value, such as the income approach
               or comparable sales approach; and
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               k.
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               The basis for the valuation.
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               (c)
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            <p class="content1">
               Any determination of the value of the donation is the responsibility of the donor.
               Conservation easement appraisals are complex and subject to special rules with which
               the appraiser should be familiar. For federal income tax purposes, the appraisal generally
               should be dated no earlier than 60 days prior to the donation/closing, but no later
               than the due date of the return in which the contribution is claimed (i.e., April
               15, 2016 for the calendar year 2015 returns).
               </p>
            		
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               (d)
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               Title investigation and subordination. The Soil and Water Conservation District attorney
               shall investigate title to each property for which it intends to acquire title or
               a conservation easement to be sure that it is negotiating with the legal owner(s)
               and to uncover liens, mortgages, mineral or other leases, water rights and/or other
               encumbrances or matters of record that may affect the transaction. Mortgages, liens
               and other encumbrances that could result in extinguishment of the conservation easement
               or significantly undermine the conservation values on the property shall be discharged
               or properly subordinated to the conservation easement.
               </p>
            		
            <p class="historynote0">
               (
               <a class="ordinance-link" href="" data-product-id="12776" data-ordinance-id="797622">
                  Ord. No. 16-11-01
                  </a>
               , Â§ 1(Exh. A), 11-1-16)
               </p></div>