Panel backs bill to require payment of foregone taxes when utilities condemn conserved land

Senator Perry presented legislation aimed at dissuading utilities and other takers from using land subject to conservation easements by requiring payment of the taxes the Commonwealth and locality forewent when the easement was put in place.

The sponsor said the bill does not ban condemnation but would require a condemning party to reimburse the state and locality for the tax benefits originally granted to the landowner when the conservation easement was recorded. The proposal includes an amendment to adjudicate any dispute over that additional payment separately from the traditional just‑compensation proceeding for the landowner and easement holder.

Conservation groups, including the Piedmont Environmental Council, testified in support and praised the amendment. Opponents representing regulated utilities and pipeline interests said the bill is well intended but would duplicate existing remedies and shift costs to ratepayers; they also warned the separate adjudication could add litigation costs.

After the subcommittee adopted the amendment and heard the testimony, the panel reported the bill 6–0. The sponsor said the change is intended to encourage utilities to use alternative right‑of‑ways rather than conserved parcels.