The importance and value of farmland tax credits to farmers has been greatly reduced as a result of state adoption of use value assessment, and by increased state funding for education, which has lowered local tax rates. Experience in Nfichigan provides a good precedent. As in Wisconsin, Michigan's state government has assumed a greatly increased share of the cost of elementary and secondary education, producing a substantial drop if local property taxes statewide. As a result of the decrease in local property taxes, many farmers felt that they no longer received sufficient benefit from tax credits to justify leaving their land under farmland preservation agreements, and called for permission to opt out of the program. En response, the State Legislature gave farmers a 6 month- period to opt out of their farmland preservation agreements.
States have other ways of funding PDR as well.
Pennsylvania has funded its PDR program through an increase in the state cigarette tax. In Colorado, revenue for PDR is provided from the state lottery. Vermont has raised revenue for PDR by imposing a real estate transfer tax. In cases where private property owners stand to benefit economically when and if. development rights are purchased, it is particularly appropriate to expect them to bear a proportion of the cost. Donations of development rights can also be encouraged.