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Senate waives five-year rollback tax for donated conservation easements, with safeguards
Summary
The Senate approved House Bill 143 to waive the five-year property tax rollback for lands donated for conservation easements, subject to restrictions on eligible nonprofit holders and safeguards to record fair-market value and recoup taxes if easements are misused.
The Utah Senate voted to approve House Bill 143 on Feb. 27, which waives the five-year rollback tax that can otherwise apply when owners place property into conservation easements.
Senator Blackcomb explained the bill is intended to encourage donations of land to qualified conservation organizations (501(c)(3) entities meeting section 170(b) criteria) for scenic, historic or wildlife purposes and to remove a financial barrier that can deter such donations. The bill requires recordkeeping of fair-market value while land is subject to an easement so counties can recover taxes if the easement is misused.
Senator Watson expressed reservations about shifting potential tax costs to counties and warned the exemption could be used beyond agricultural purposes; Blackcomb responded the law limits holders to qualifying nonprofit organizations and maintains safeguards if an easement is removed from conservation use.
The Senate recorded 21 ayes and 8 nays on the bill; sponsors characterized it as a targeted policy to facilitate conservation donations while seeking to prevent abuse through nonprofit qualification and fair-market-value tracking.
