Update: From The Denver Post (Jessica Fender):
Lawmakers in the 2010 legislative session added $1.1 million to the Revenue Department’s budget to hire staff and contract third-party appraisers to resolve the backlog. That money became available at the start of July, department spokesman Mark Couch said. His agency welcomes an audit, he said. “We hope it will help resolve concerns about these tax credits,” Couch said. “These are very complicated tax returns. They take a lot of review when they go through the process of being disputed and protested. We didn’t have the funding until the beginning of the fiscal year.”[…]
An unknown number of landowners and tax-credit buyers around 2005 began getting notices from the Revenue Department advising them they had claimed a larger break than they were entitled to and questioning the appraised value of the land that determines the size of the credit. Of 2,847 conservation easements the state has considered between 2000 and 2008, about 500 have been denied or are in question, Revenue Department figures show. Letter recipients are given a month to appeal the decision. Many do.
And that’s where the bottleneck starts, according to J.D. Wright, president of Landowners United. The group advocates for about 90 landowners entangled in easement disputes. He said some property owners have erroneously had wages garnisheed. Others live in uncertainty about their financial futures.
From the Associated Press (Stephen K. Paulson) via Bloomberg Businessweek:
The Legislative Audit Committee on Monday said it will consider whether to audit the state Department of Revenue later this year to find out if landowners are being treated fairly and disputes are resolved in a timely manner. State Rep. Marsha Looper, a Republican from Calhan who requested the audit, says it could take 10 years at the current rate to resolve disputes from 355 landowners who claim over $90 million in tax credits. Those credits have been challenged by the state. Lawmakers first want to find out how much information is available because it involves confidential state and federal tax records. “Some of these property owners only have 30 days to protest denial of their appeals that could lead to foreclosure, and they’re not even getting a certified letter. Credit buyers are already getting liens on their loans. The state is going after the credit banks,” Looper said.
More conservation easements coverage here and here.
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