The Board of Water and Soil Resources (BWSR) has an optional new Withdrawal Fee calculation that can save you potentially thousands of dollars on your next transaction. While you still have the option of calculating a withdrawal fee based on 6.5% of the sale price (as long as you include the purchase agreement with your completed application for withdrawal), the new method could be beneficial.
Effective January 1, a fee schedule has been provided by BWSR (link at bottom of page) that sets a specified value for credits in each county, based on a cost per acre.
As an example, if 1.5 acres of credits in Douglas County are sold at $20,000 per acre, the total sale price would be $30,000. The old method would charge a withdrawal fee of 6.5% or $1950.00.
Under the new method, BWSR’s withdrawal fee per acre in Douglas County on the new fee schedule is $827. Calculating using the new method would mean the withdrawal fee would only be $1240.50 ($827 x 1.5 acres), saving $709.50.
Make sure to calculate your withdrawal fees using both methods to determine which method is more cost effective for you.