Virginia General Assembly Is Now In Session

Vacant Landowner Alert!

The Virginia Association of Home Builders has recommended, earlier in this session, that the Virginia General Assembly remove the cash proffer system and replace it with an impact fee. Their plan would extend the impact fee to all zoned but undeveloped land, implement a cap on the amount that could be assessed, and require localities to dedicate the funds for the new or anticipated infrastructure derived from the new development.

So, how strong are they? Very strong, as evidenced with the following pending legislation that is swiftly moving through the assembly.

SB 768, (Senate Bill # 768) providing for sweeping changes to the cash proffer system, passed the Senate Local Government Committee last Tuesday, January 29, 2008, and now awaits action by the Senate Finance Committee. This proposal, drafted for the Home Builders Association of Virginia contained the following provisions:

1. Repeal the cash proffer system

2. Replace cash proffers with impact fees

3. Cap impact fees at $8,000 per unit in Northern Virginia and $5,000 per unit in the rest of Virginia

4. Allow impact fees to be applied on all "by-right" lots

5. Increase the grantor tax, a tax paid by a “seller” when a property transfers.

 

At this time, the increase in the grantor’s tax has been removed from the “advancing” legislation; “crossover” will occur shortly.

 

Now, if approved, how will this bill affect your property? While some may feel that these actions are necessary, those “feelings” are spending your money, and depreciating the value of your property. (I am sure the “builder’s” have your interest at heart.)

 

Wow! Wait! Stop! Immediately! Repeal, replace; “builder’s” must pay their own way, not put the cost on local longtime landowners. “Cap impact fees,” capping any fee at any time sounds regressive and negligent. Next, “on all by-right lots:” now they are really camouflaging the picking of the pocket of every landowner who may be able to utilize an ability that many have earned through their years of ownership. The “by-right” mechanism was developed to provide property owners a “reasonably priced method” to divide their property without changing any zoning. Now “they” are adding fees to the “reasonably priced” method provided by local governmental authorities to aid local constituents’?”

 

Let’s see, local governments have already reduced a landowners rights to “divide” their own land, and now the “state” is taking $5,000 payola for you to do what you already had the right to do? You say that you have owned this land for years and have paid your taxes promptly. Great, the “government” appreciates those facts; however, times are tough and the coffers are low, so cough up the money. Please make that check payable to the Treasurer of Virginia, in the amount of, $5,000. That check is $5,000 per parcel, i.e. four parcels equal $20,000 cash, net money, after taxes, non-deductible. Oh, you were planning to sell to someone else who will divide the land. SOMEONE has to come up with that money and those fees will come into play during the property sale.

 

Let us review. County assessed values are up an average of 100%, at minimum, a doubling your annual county tax fee; the value of your vacant land parcel(s) has been decreasing since 2005; and now someone is planning to take another $5,000 or more from your pocket. Your neighbor, the one that built last year, or previously, does not have to pay that $5,000. You may say, why not, you purchased your land before they bought their parcel; they should also pay the “impact fee.” Sorry, that will be the law unless you act by contacting your delegate and state senator to make your position known, NOW!                                                        

 

The assembly will adjourn before March 15, 2008. TIME IS OF THE ESSENCE!