Maryland Environmental Trust

Easement Purpose:
To protect scenic open areas, including farm and forest land, wildlife habitat, waterfront, unique or rare areas and historic sites.

Type of Easement:
Donated conservation easement, perpetual.

Eligibility Factors and Criteria:
MET considers such factors as: cropland, pastureland, woodland, undisturbed open space, ecologically significant areas, scenic landscapes or features, historic sites/districts, and other significant or unique features.

Minimum Size Property:
Minimum of 25 acres preferred.

Limitations on Development:
MET prefers no additional development (except accessory structures), but the right to reserve a very limited number of building rights (e.g. lots for a child's house, tenant house, guest house) will be considered on a case-by-case basis. Generally MET prefers to maintain a density of existing and proposed structures on the property substantially below what local zoning allows. Additional farming and residential accessory structures are typically allowed.

Potential Tax Benefits:
· Income - Typically, donor may reduce Federal taxable income by 30% each year until value of gift is exhausted (maximum 6 years).
· Property - Assessed value of land for tax purposes is reduced to reflect restrictions of easement. Maryland law allows a 100% property tax credit (state and local) for 15 years on unimproved property subject to easement to MET.
· Estate - Upon death of donor, value of estate (for federal and state tax purposes) is reduced to reflect lower value of property reduced by easement. Easement may be in place at time of death or required by donor's will.

Easement Value:
For tax purposes, easement value equals the fair market value (FMV) of the unrestricted property minus the FMV of the property with easement restrictions in place. Value is determined by a qualified appraiser selected by donor.

Stewardship:
MET inspects each easement property periodically (at least once every 4 years), after notification to owner, to ensure compliance.

Source = Frederick County Planning Department