COALITION: No Land Trust Tax Deal!

10/20/03

News release from Land Rights Network
American Land Rights Association

A broad coalition of 34 interest groups representing religious schools and churches, taxpayer advocates and property rights organizations have united in support of the House (HR 7) and against the Senate (S 476) version of the "Faith Based Initiative."

The group has signed a letter to the House and Senate committee chairmen with jurisdiction over the legislation, objecting to a favored status that would be granted to land trusts in the Senate version of the bill. It reads in part:

"The Senate proposal would provide a capital gains tax reduction of 25% to sellers of land or water rights - but only if they sell to a land trust or a
government agency . . . It will do virtually nothing to benefit sellers of
land, since land trusts will be able to reduce their offering price versus
any other potential buyer of property . . . This proposal would place
faith-based institutions, such as churches, orphanages and private schools, at a comparative disadvantage in property purchases compared to land trusts and government agencies, neither of which are faith based."

The additional cost of the Senate provision is approximately $500 million.

The Land Trust Alliance is pushing for a 50% reduction, costing nearly $1
billion.

Signers include the National Tax Limitation Committee, the American
Conservative Union, the American Association of Christian Schools, the
American Land Rights Association and 30 others.

Separately, the Association of Christian Schools International, joined by
the National Association of Evangelicals and 18 others, signed a similar
letter objecting to the "glaring inequity in the Senate version." It asks
Congress to support "charitable choice" as long as there is a "level playing field" for all charitable groups "rather than a special benefit bill for
land trusts."

"Votes on this bill will be scored on our annual vote index," promised
Susan Kocsis of the League of Private Property Voters, which has published its annual scorecard of Congress since 1989.



RECOMMENDED ACTION ITEM from ALRA:

Congressman Steve Pearce is circulating a letter to all members of
Congress, asking them to sign it - it says that there should be NO special
handouts to Land Trusts!!!

CONTACT your Congressional office - tell them to "Sign Congressman Steve Pearce's letter on HR 7 - NO SPECIAL DEALS FOR LAND TRUSTS !!!"

You can call every Congressman at (202) 225-3121. Or use this temporary free number : (800) 648-3516.

Here is the letter to the Senate and House Committee Chairmen:


October 20, 2003

Honorable William Thomas
Chairman, Committee on Ways and Means
1102 Longworth House Office Building
Washington, DC 20515

Honorable Charles Grassley
Chairman, Committee on Finance
219 Dirksen Senate Office Building
Washington, DC 20515

Gentlemen,

In the upcoming conference committee on the faith based initiative, we ask
you to support the House of Representatives position (HR 7) which contains
no special provisions for land trusts. We ask you to strongly oppose the
Senate version (S 476) which would hand over to land trusts a new and very
powerful advantage over other non-profits and the private sector.

The Senate proposal would provide a capital gains tax reduction of 25% to
sellers of land or water rights - but only if they sell to a land trust or a
government agency. Land trusts are pushing for a 50% break, the cost of
which to the treasury is scored by the Joint Committee on Taxation at just
under a billion dollars over ten years.

We oppose this Land Trust Tax Favoritism for numerous reasons:

It will do virtually nothing to benefit sellers of land, since land trusts
will be able to reduce their offering price versus any other potential buyer
of property. Any tax break benefit will be handed over to land trusts in
the form of a reduced sale price. Even worse, this proposal will likely
discourage purchase offers from any parties except land trusts and
government agencies, since all others will have to offer a premium price
just to stay even. With reduced competition for property, the landowner
loses.

It will damage the economic and property tax base of many small and rural
communities, in particular those already hosting significant public lands.

It is our belief that the Charitable Giving Act is intended to encourage
and benefit faith-based institutions in their efforts to extend social
services to the general public. And yet incredibly, this proposal would
place those very faith-based institutions, such as churches, orphanages and
private schools, at a comparative disadvantage in property purchases
compared to land trusts and government agencies, neither of which are
faith-based.

Land trusts, which are organized as tax-exempt "non-profits," already have
significant advantages over private parties in the tax code. Some, such as
the Nature Conservancy (assets $3.2 billion, annual budget $740 million)
have grown into multibillion dollar multinational corporations with economic
power greater than nearly any party they may compete against for property.
This additional proposed advantage tilts the playing field too far in favor
of land trusts and government agencies.

This will have a negative impact on the federal budget both in terms of
the tax expenditure involved and additional maintenance backlog due to
adding to the federal land inventory.

There are no reforms or additional accountability being asked of land
trusts or government agencies in exchange for this substantial new benefit.
For example, land trusts have resisted attempts to prohibit the practice of
"flipping," or purchasing and quickly reselling, land to government agencies
at a substantial profit.

We ask you to keep this legislation focused on faith based institutions.
It is inappropriate, costly and unnecessary to offer additional benefits to
land trusts in this bill.

Sincerely,

Charles Cushman, Executive Director Paul M. Weyrich, National Chairman
American Land Rights Association Coalitions for America
Battle Ground, WA Washington, DC

Grover Norquist, President David A. Keene, Chairman
Americans for Tax Reform American Conservative Union
Washington, DC Alexandria, VA

John C. Holmes, Dir. of Govt. Aff. Susan Kocsis, Legislative Chairman
Association of Christian Schools Intl. League of Private Property Voters
Silver Spring, MD Tustin, CA

Lewis Uhler, President Dr. Keith Weibe, President
National Tax Limitation Committee American Association of Christian
Schools
Roseville, CA Chattanooga, TN

Lawrence Cirignano, Executive Director Carol LaGrasse, President
Catholic Alliance Property Rights Foundation of America
Washington, DC Stony Creek, NY

Myron Ebell, Dir. Intl. Environ. Studies James Martin, President
Competitive Enterprise Institute 60 Plus Association
Washington, DC Arlington, VA

C. Preston Noell, III, President Rose Correira, President
Tradition, Family, Property, Inc. Alliance for America
McLean, VA Quincy, CA

Tom DeWeese, President Henry Lamb, Exec. Vice Pres.
American Policy Center Environmental Conservation Organization
Warrenton, VA Hollow Rock, TN

Dan Clifton, Executive Director Donald Fife, President
American Shareholder Association National Assn. of Mining Districts
Washington, DC Apple Valley, CA

Kevin L. Kearns, President G B Oliver, Executive Director
U S Business and Industry Council Paragon Foundation
Washington, DC Alamorgordo, NM

Ron Pearson, President Patricia Callahan, President
Council for America Amer. Assn. of Small Property Owners
Washington, DC Washington, DC

Tom Randall, President Dan Byfield, President
Winningreen, LLC American Land Foundation
Chicago, IL Austin, TX

Harry Valentine Dick Welsh, President
Capitol Hill Prayer Alert Natl. Assn. of Reversionary Prop. Owners
Washington, DC Rancho Mirage, CA

Dr. Vernon Hayes Marty McElhaney
Forest Landowners Association Liberty Matters, Inc.
Atlanta, GA Taylor, TX

Matt Bennett, President Dorothy Bartholomew, President
Treekeepers, Inc. People for the USA
Maryville, TN Lander, WY

Dick Patton, Executive Dir. Howard Hutchinson, Exec. Dir.
American Family Business Inst. Coalition of Arizona/NM Counties
Washington, DC Glenwood, NM

Bob Bowman, President Jon Reisman
Freedom Matters Maine Public Policy Institute
Madison, WI Cooper, ME

Land Rights Network
American Land Rights Association
PO Box 400 - Battle Ground, WA 98604
Phone: 360-687-3087 - Fax: 360-687-2973 - E-mail: alra@landrights.org or
alra@governance.net Web Address: http://www.landrights.org
Legislative Office: 507 Seward Square SE - Washington, DC 20003
Phone: 202-210-2357 - Fax: 202-543-7126 - E-mail: landrightsnet@aol.com