1560 Broadway, Suite 925 Denver, CO 80202-5111

Application for a Conservation Easement Tax Credit Certificate Preliminary Advisory Opinion Return to: Division of Real Estate Conservation Easement Program 1560 Broadway, Suite 925 Denver, CO 80202 Phone # (303) 894-2166 Email: [email protected]

Payment: - Credit Card Accepted through Online Licensing - Check Payable to Division of Real Estate - No Cash Accepted

For Division Use: Date Received

Application Fees: Qualified Conservation Contribution: $2,300 Draft Conservation Easement Appraisal: $2,300 Both: $4,600

A Landowner considering a proposed conservation easement donation may request an optional preliminary advisory opinion (PAO) from the Division of Real Estate (Division) prior to an application for a tax credit certificate. The opinion may consider: (1) the credibility of the appraisal and/or (2) whether the donation is a qualified conservation contribution. The request for a PAO is not an application for a tax credit certificate and any opinion issued is nonbinding. This form must be completed and sent to the Division together with the supporting documentation. To improve program efficiency, decrease program costs, and best serve the general interest of Colorado, the Division strongly encourages landowners to provide documentation electronically. Acceptable electronic submissions include email, flash drives, or a readable disc. All documents must be in PDF or Microsoft Office compatible file types. All photographs, charts and maps must be in color. Even with paper application submissions, the Division prefers electronic payment of the prescribed fee through its online licensing management system. To make an electronic payment, please submit the signed application and supporting documentation to the Division without the prescribed fee. Once the paper application package has been received, the Division will create an online account for electronic payment, and then the Division will notify the applicant of the new account and pending payment. Remit payment by credit card or electronic fund transfer through this online account. Any checks submitted to the Division will be process as an electronic fund transfer through the Division’s online licensing management system.

Part I. Request a PAO 1.

Select the appropriate PAO: Qualified Conservation Contribution

Supporting Documentation Checklist for Qualified Conservation Contribution:

Conservation Easement Appraisal

Supporting Documentation Checklist for Conservation Easement Appraisal:

Enclosed

Enclosed

Draft Conservation Easement Deed

Draft Appraisal

Draft Baseline Documentation Report

Any other relevant information or documentation

Title Commitment

$2,300 Fee

Vesting Deed(s) Subordination Agreement(s) (if applicable) Mineral Remoteness Report

Both

(if applicable)

Proof of Signatory Authority (if applicable) Any other relevant information or documentation $2,300 Fee Page 1 of 7 Revised 5/10/2016

Part II. Landowner Information 2. Landowner Name (Grantor or Donor of Conservation Easement Deed): 4.

3.

Tax Identification Number:

Who donated the conservation easement? (Check the appropriate box) Individual

Estate

Joint Owners, Joint Donors, Joint Tenants, or Tenants in Common

Partnership

Trust

S-Corporation

LLC

Other

C-Corporation 5.

Mailing Address (Street or P.O. Box)

City

State

Phone

Email

Zip Code

6.

Authorized Representative

Phone

Email

7.

Attorney Contact

Phone

Email

Part III. Property and Conservation Easement Brief Legal Description of Conservation Easement: 8. County(ies): 9. Section(s):

10. Township(s):

11. Range(s):

12. Meridian:

13. Acres to be Encumbered by the Conservation Easement: 14. Anticipated Recording date of easement:

15.

Organization(s) holding the conservation easement :

16. Do you authorize the Division to discuss your application with the organization holding the conservation easement?

Yes

No

17. Conservation Purposes (Check all that apply) Land area for outdoor recreation by, or the education of, the general public Relatively natural habitat for fish, wildlife, or plants, or similar ecosystem Open space Agriculture Scenic Historically important land area or a certified historic structure Yes 18. Does the Landowner own all mineral rights associated with the property? 19. Are decreed surface water rights associated with the property? 20. Is there a mortgage/deed of trust/lien on the property? 21. Is this transaction part of a series of transactions by the same Landowner (Donor)? If this is the first donation of a planned series, please check “Yes” even though it’s possible the Landowner (Donor) will not make future donations. 22. Transaction type (Check one):

Bargain Sale

Donation Page 2 of 7

No

Part IV. Appraisal 23. Name(s) and License Number(s) of Qualified Appraiser(s): 24. Phone 25. Email 26. Appraised Acres

27. Effective Date

28.

Appraised Fair Market Value Yes

29. Does the Landowner or a family member own property contiguous to the conservation easement? If “Yes”, please briefly describe the interest.

30. Does the Landowner or a related person (natural person or entity) own an interest in any nearby property? If “Yes”, please briefly describe the interest.

31. Did the appraisal conclude there to be enhancement (increase in value) of any property owned by the Landowner or a related person (natural person or entity)?

32. If “Yes”, please provide the dollar value of enhancement: $

Page 3 of 7

No

Part V. Specific Issue(s) or Question(s) 33. Please provide a detailed description of any specific issue(s) or question(s) relating to the proposed conservation easement donation that you would like to be considered as part of the application. (Attach additional pages if needed)

Part VI. Disclosures

Disclosures: All declarations must be initialed by the Landowner to receive an opinion. 34. ________ Landowner understands a preliminary advisory opinion (PAO) is optional and therefore is not a requirement to apply for a conservation easement tax credit certificate. Landowner further understands that PAOs are nonbinding and are not appealable. 35. _______ Landowner understands and acknowledges that the fee prescribed by the Division is non-refundable. The application fee required with this application is set annually, unless otherwise noted by the Division. The required fee is assessed at the time the Division receives and deems complete the application. 36. _______ Landowner understands that the request for a PAO is not an application for a tax credit certificate. 37. ________Landowner understands the Division, the Director of the Division (Director), and the Conservation Easement Oversight Commission (Commission) may discuss the application with the conservation easement holder, the appraiser, and the Department of Revenue. Landowner further understands the Division, the Director, and the Commission may share information and documentation with the Department of Revenue. 38. _______ Landowner understands that the Commission determines whether the donation is a qualified conservation contribution and the Director determines whether the donation is supported by a credible appraisal. Landowner understands that they must comply with all laws, regulations and requirements to claim and use a conservation easement tax credit. 39. _______ Landowner understands that the issuance of a PAO will not limit the authority of the Division to approve or deny a later application for a tax credit certificate if changes are made after the issuance of the opinion. 40. _______ Landowner understands that the Division may request additional information or documentation that the Director and the Commission deem necessary for the purposes of making an opinion. 41. _______ Landowner understands that an issuance of a PAO by the Division has no bearing on any IRS review of the conservation easement donation. 42. ________ Landowner will not make this donation in order to get a permit or other approval from a local or other governing authority or pursuant to a contract other than an option agreement for a bargain-sale of a conservation easement. 43. _______ Landowner understands that in reviewing the appraisal the Division is not making an opinion of value of the donation.

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Part VII. Signature Signature: The Landowner must sign the application. I declare that, to the best of my knowledge and belief, the information submitted with the form is true, correct and complete. Signature:________________________________ Title:____________________________________ Date:__________ Print Name:________________________________________

Telephone Number:________________________________

Instructions for the Application for a Conservation Easement Tax Credit Certificate Preliminary Advisory Opinion The Landowner who will donate the conservation easement must complete the entire application in order to receive an opinion. Part I – Request a Preliminary Advisory Opinion (PAO) Line 1.

Check the box identifying the PAO type that you are requesting.

Landowner must submit the appropriate documentation for the requested PAO. Checklist Definitions •

Draft Conservation Easement Deed: a final draft copy of the conservation easement that will be recorded in county or counties where the land is located. Only required for qualified conservation contribution PAOs.

•

Draft Baseline Documentation Report: A final draft report of the conditions of the property at the time of the conservation easement donation. The report establishes the conservation value(s) and is used to monitor and enforce the conservation easement in perpetuity. Only required for qualified conservation contribution PAOs.

•

Title Commitment: a copy of the current title commitment with the title exception documents. Only required for qualified conservation contribution PAOs.

•

Vesting Deed(s): a recorded instrument that shows when the landowner first takes title to the property and any deeds in the chain of title to show that the property has been owned for more than a year. Only required for qualified conservation contribution PAOs.

•

Subordination Agreement(s): required only if the conservation easement property is subject to a mortgage, deed of trust, or similar lien. The agreement must clearly show that the mortgage/lien holder subordinates its right in the interest in the land to the right of the conservation easement holder responsible for enforcement of the conservation easement. Agreement(s) may be final unsigned drafts. Only required for qualified conservation contribution PAOs.

•

Mineral Remoteness Report: required only if ownership of the surface estate and mineral interest have been separated. The report must be prepared by a professional geologist or a qualified professional that concludes the probability of surface mining on the conservation easement property to be so remote as to be negligible. The report may be a final draft. Only required for qualified conservation contribution PAOs.

•

Proof of Signatory Authority: a document that grants authority to a designated person to sign on behalf of a legal entity, estate or joint ownership. Proof of signatory is only required for qualified conservation contribution PAOs. Three types of authorizing documents are acceptable: 1.

2.

If Landowner is a trust, a limited liability company, a C-corporation, a partnership, or an S-Corporation, please submit one of the following: 

Recorded or Draft Statement of Authority evidencing the authority of one or more persons by name or by position to execute instruments conveying, encumbering or otherwise affecting title to real property on behalf of an entity.



Trust or Entity Agreement stating the authority of one or more persons by name or by position to execute instruments conveying, encumbering or otherwise affecting title to real property on behalf of the trust or an entity.

Letters Testamentary required only if the Landowner is an estate. Page 5 of 7

3.

•

Statement Appointing One Owner required only if the Landowner is a joint owner. Please provide a document signed by all the joint owners designating one joint owner to sign the application on their behalf. Joint owners include joint donors, joint tenants, or tenants in common.

Draft Conservation Easement Appraisal: a full final draft of the qualified appraisal prepared by a qualified appraiser with the fair market value of the conservation easement. Only required for Appraisal PAOs. Part II - Landowner Information

Line 2.

Enter the name of the Landowner (Grantor or Donor) that will make the donation of the conservation easement. Landowner means the record owner of the surface of the land who creates a conservation easement in gross pursuant to section 38-30.5-104, C.R.S.

Line 3.

Enter the Landowner’s Tax Identification Number. Acceptable values include the Landowner’s Social Security Number, or the Federal Employer Identification Number.

Line 4

Check the box identifying the type of Landowner.

Line 5.

Enter the Landowner’s mailing address where the opinion will be sent and the Landowner’s phone number and email.

Line 6.

Enter the contact information of the Authorized Representative of the Landowner, if any. If the Landowner is a trust, a limited liability company, a C-corporation, a partnership, an estate or an SCorporation, the authorized representative is the designated person authorized to sign on behalf of the Landowner.

Line 7.

Enter the contact information of the Attorney representing the Landowner, if any. Landowner designates their Attorney to be the primary person that the Division will contact to answer questions concerning the application. Part III - Property and Conservation Easement

Lines 8 -12. Enter the county(ies), section(s), township(s), range(s), and meridian in which the deed of conservation easement will be recorded. Line 13.

Enter the number of acres to be protected by the conservation easement.

Line 14.

Enter the anticipated date that the deed of conservation easement will be recorded.

Line 15.

Enter the name of the organization (Grantee) holding the conservation easement. Note: The Conservation Easement Holder must be certified by the Division at the time of the conservation easement donation.

Line 16.

Mark all the conservation purpose(s) of the conservation easement as defined in § 170(h) of the Internal Revenue Code.

Line 17.

Mark “Yes” if you authorize the Division to discuss your application with the organization holding the conservation easement.

Line 18.

Check “No” if any mineral rights are owned by a party other than the Landowner. If “No”, please provide a Mineral Assessment Report for a Qualified Conservation Contribution PAO only.

Line 19

Check “Yes” if there are decreed surface water rights associated with the property.

Line 20.

Check “Yes” if the property is subject to a mortgage, deed of trust, or lien and please provide the Draft Subordination Agreement(s) for a Qualified Conservation Contribution PAO only.

Line 21.

Check “Yes” if the Landowner has donated, or is planning to donate, multiple conservation easements on the land owned by the Landowner.

Line 22.

Select “Bargain Sale” if the Landowner will receive a cash payment for a portion of the conservation easement. A bargain-sale means the easement was part sale, part gift. Part IV-Appraisal

Line 23.

Enter the name(s), and license number(s) if available, for the qualified appraiser(s) who will sign the appraisal. Note: The appraisal must be prepared by a Certified General Appraiser licensed by the Division. Additionally, the Certified General Appraiser must not have a practice restriction prohibiting the appraiser from conducting an appraisal for conservation easement. Page 6 of 7

Lines 24-25. Enter the phone and email contact information for the appraiser(s) who will sign the appraisal. Line 26.

Enter the total acres of the appraised property.

Line 27.

Enter the effective date of the fair market value of the conservation easement.

Line 28.

Enter the appraised fair market value of the conservation easement.

Line 29.

Check “Yes” if the Landowner or family member(s) of the Landowner own real property contiguous to the conservation easement property. Section 267(c)(4) of the Internal Revenue Code defines “family” as brothers, sisters, spouses, parents, grandparents, and children whether by whole or half-blood.

Line 30.

Check “Yes” if the Landowner or a “related person” (this means both natural persons and legal entities) own other real property nearby the conservation easement property.

Line 31.

Check “Yes” if the appraisal concluded that the granting of the conservation easement increased the value of any other property owned by the Landowner or a related person (natural person and entities).

Line 32.

If you answered “Yes” to Line 30, enter the dollar value of enhancement (Enhancement Amount) Part V- Specific Issue(s) or Question(s)

Line 33.

Identify any specific issue(s) or question(s) relating to the proposed conservation easement donation that you would like to be considered as part of the application. Part VI-Disclosures

Lines 34-43. As the Landowner requesting to receive an opinion, please indicate your agreement by initialing each statement. Part VII-Signature The Landowner, or authorized signatory, must sign the application by entering his/her name, title, and phone number.

Submit to: Division of Real Estate: Conservation Easement Program 1560 Broadway, Suite 925 Denver, CO 80202 Email: [email protected]

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