After a public fact-finding hearing about Colorado’s troubled conservation-easement program, Sen. Jerry Sonnenberg isn’t sure what next step legislators could take to address “bungled” land transfers decried by some program participants.
But the Sterling Republican said he knew one thing for certain: “There were a lot of things that don’t seem right, and (the government) didn’t treat people fairly.”
The state’s conservation easement program allows landowners to donate property to a nonprofit or a government entity and receive a tax credit in return. Participants can use the tax credits themselves or sell them.
The program fell into starting in late 2007 amid claims of . Efforts to correct the problem put some property owners and credit buyers
for the value of the disallowed credits, plus interest and penalties.
Earlier this year, Sterling residents Alan and Julia Gentz , challenging disallowed easement credits, a $708,000 tax bill, the legality of the state’s binding administrative hearing process and difficulties in resolving grievances.
Alan Gentz was one of several people who aired their frustrations about the program and its “devastating” effects during Wednesday’s hearing at the statehouse.
“I have paid over $100,000 in legal fees just trying to get to court,” he said, referencing a “nine-year battle” with the state.
Janice Scheimer, who owns property in Cheyenne County and also is a certified financial planner, wondered how the state Department of Revenue could disapprove the appraisal of her farmland.
“To me, being licensed through the state of Colorado means something, so I assumed that our appraiser was a good appraiser,” she said.
The state’s efforts to fix the program only made the situation worse, said Jillane Hixson, of Lamar. “They had unlimited resources to come after us. … there was no way in hell any of us could go against Goliath.”
Of the 719 disallowed credits easements cases, 648 were settled and closed after an administrative hearing process, said John Vecchiarelli, the state’s senior director of taxation. Since the inception of the program, there have been 4,243 donations of easements for tax credits, he said.
The state Department of Regulatory Agencies has received 46 easements for credit applications for the 2014 tax season, director Marcia Waters said. Of the 39 reviewed, 33 had at least one appraisal issue, she said.
The deficiencies were handled in a timely manner and 30 tax credit caps have been issued, she said.
“(The conservation easement program) is an incredibly complex program,” she said. “The department has worked hard to ensure the integrity of the program.”
Alicia Wallace: 303-954-1939, awallace@denverpost.com or twitter.com/aliciawallace
