Bill targets tax abuses of land conservation
Lawmakers tried to rein in a multimillion-dollar program that grants tax breaks for land conservation after state officials ran down a litany of abuses, including people getting tax credits for agreeing to preserve their backyards.
State revenue officials said the program got so out of control they had to ask the IRS to step in and audit people who claimed tax credits for which they didn’t qualify. Under the program, property owners get federal and state tax breaks by granting conservation easements that guarantee land won’t be developed.
John Vecchiarelli, director of the taxation business group at the state Department of Revenue, said the state now gives up $85 million a year in revenue to the program, up sharply from the $2.3 million when the program started in 2000.
State officials said developers were getting paid not to develop land they have already agreed to preserve, and farmers and ranchers were chopping their land into smaller parcels to double or quadruple their tax credits.
The House Finance Committee approved House Bill 1361, which would require applicants to state specifically what conservation benefit taxpayers are getting for their money. The measure now goes to the full House.
The sponsor, House Majority Leader Alice Madden, D-Boulder, said the IRS audited 250 organizations that applied for the tax credit and found problems with 70.
Grants to fight fires by cleaning beetles’ mess
The House passed a measure Tuesday aimed at helping protect Colorado forests from wildfires through cleanup of beetle-ravaged trees. House Bill 1130 passed 64-1 and now goes to the Senate.
The bill from Rep. Dan Gibbs, D-Silverthorne, establishes a grant program to help communities clean up damage caused by the bark beetle epidemic. The program will be funded through $1 million from the water conservation board.
Homebuyer protection bill now heads to Ritter
The Senate passed a measure 19-15 that seeks to provide homebuyers with legal protection against builders who have sold poorly constructed homes.
House Bill 1338, known as the Home owner Protection Act of 2007, now goes to Gov. Bill Ritter.
The bill would require that provisions in contracts designed to protect homebuilders from lawsuits be voided if there is fraud or gross negligence by the builder.
