COUNTY OF ALBEMARLE
Land Use Taxation Program – Option 2
Consideration of setting a public hearing to receive input on limiting land use value taxation to the Open Space classification only.
Tucker, Foley, Davis, Herrick, Graham, Wiggans, Woodzell
LEGAL REVIEW: Yes
July 9, 2008
ACTION: X INFORMATION:
At its work session on May 14, 2008, the Board of Supervisors discussed the land-use value taxation program. At the conclusion of the discussion, the Board asked that staff review “Option 2,” as described in a prior Executive Summary dated September 5, 2001 included with Attachment 3, and report back to the Board with additional information and assessment of this option. As described in the prior Executive Summary, Option 2 would allow “Use Value Taxation for the Open Space Classification Only.” Information regarding the land use classifications in other Virginia localities is included in Attachment 4. Recent information on the properties currently in land use is included in Attachment 5.
Objective: “By June 30, 2010 increase the protection of the County's rural areas by implementing the key strategies in the Rural Areas Plan.”
Attached to this executive summary is background information and analysis on considering a change in the current land use program to allow only the open space designation to qualify for land use value taxation. Attachment 1 provides an overview and further background information on land use value taxation generally and Option 2 specifically. It also outlines legal requirements and steps that will need to be taken should this option be pursued. Attachment 2 attempts to assess short and long term administrative as well as policy implications of making this change. While actual impacts may vary from the analysis included for a number of reasons including the length of time for implementation, this analysis serves to identify key issues and the potential implications of the proposed change.
In considering whether or not to limit land use value taxation to the open space classification, three central questions will need to be considered by the Board. Staff has included important points from the enclosed analysis to assist in considering answers to these questions.
How effective is this strategy in protecting the rural areas?
How are County revenues likely to be impacted?
What implementation issues need to be considered in making a change?
The budget impact of this change is outlined in the attached analysis and will depend on the approach to implementation. Based on the assumptions in the attachment and a one year implementation, staff anticipates the equivalent of 7-8 FTE’s in the short run and 1 FTE over the long run. Again, the approach to implementation will determine the actual impact.
Given staff’s opinion that changes to the land use program through Option 2 will have little impact on improving rural area protection in the long term and are likely to create negative impacts in the short term, staff recommends that changes to the land use program be limited to establishing a revalidation process.
Attachment A – Land Use Taxation – Option 2 White Paper
Attachment B – Land Use – Option 2 Impacts
Attachment C – May 14, 2008 Executive Summary
Attachment D – Land Use Taxation Programs in the Commonwealth
Attachment E – Land Use Data
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