Quote:
Originally Posted by chipj29
So what happens when the non-profits sell their property? No doubt they got the land at an initial low price, if it wasn't donated. So when they sell their $10 million property, what happens?
|
What will happen is that when the camp first starts getting the tax crunch they place all or most of the land under conservation easement. Essentially they give easement rights to a third party. Sometimes multiple third parties. This protects the land from ever being developed. They might leave the area with the buildings out of this easement.
Because the land can not be developed it is worth a lot less. Thus the fair market value goes down and therefore the tax goes down.
That 10 million property may now be worth only 500k and the Girl Scouts may be able to pay the tax.
This "end around" out of the tax could work for non-profits that own lots of undeveloped land.
There is also the possibility that the Girl Scouts decide to take the 10 million and not go the easement route.
In any even the important question for society is what happens to the land, and what happens to the lake. In the long run that is a far more important question than taking a Penny or two off of your tax bill. I like the idea of having non-profit, reasonably priced camping alternatives for our children. Many children have and will benefit from camping. The camping experience is, per day, as educational as our schools.