[Congressional Record Volume 144, Number 16 (Thursday, February 26, 1998)]
[Extensions of Remarks]
[Page E247]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCTION OF THE LAND PRESERVATION TAX FAIRNESS ACT

                                 ______
                                 

                        HON. JOHN J. DUNCAN, JR.

                              of tennessee

                    in the house of representatives

                      Thursday, February 26, 1998

  Mr. DUNCAN. Mr. Speaker, I have introduced the Land Preservation Tax 
Fairness Act. This legislation will cut taxes on income earned when an 
individual sells his or her land or development rights to a nonprofit 
organization with the purpose of preserving this land.
  This bill will make it more economically viable for a person to sell 
his or her land to an organization to keep it undeveloped rather than 
sell the property to someone who may develop it. I do not think all 
development is bad. However, I think we should reward people who are 
willing to pass up large sums of money so that their property can be 
preserved.
  Currently, individuals must pay taxes on any income they may receive 
when they sell their property or development rights to the government 
or nonprofit organization which will keep the land undeveloped. I think 
the legislation I have introduced will encourage more people to do this 
by reducing the amount of taxes they must pay on any income realized 
from such a sale.
  Reducing the pressure to build on currently undeveloped property, 
particularly in areas that are in close proximity to either a national 
park or metropolitan area, is especially important. My bill will combat 
the negative effects on urban sprawl and protect the natural areas 
around our national treasures.
  Under current law, sellers can only deduct a small proportion of 
their original investment from any gain that they may make on this type 
of sale. However, this bill will allow individuals to deduct the entire 
amount of their original investment from any gain they may realize 
which will result in more people making an effort to preserve 
undeveloped land.
  Without this type of tax relief, only the wealthy farmers and 
landowners will be able to afford not to sell their property to 
developers. The Land Preservation Tax Fairness Act will provide this 
opportunity to a larger number of people and help preserve more 
farmland and natural areas for future generations.
  I hope my Colleagues will join me in supporting this legislation so 
that we can help protect the environment and reduce the tax burden on 
the American public.

                          ____________________