Coalition for Smarter Growth

Protect VA Taxpayers
Oppose Senate Bill 768: A Taxpayer Subsidy for Developers

Developer and homebuilder lobbyists in Richmond are pushing a bill that would pass even more costs of new development onto existing taxpayers.

Take Action!

1. Tell your local elected officials to oppose SB 768.
2. Ask your legislators and the Senate Local Government Committee to oppose SB 768. You can also call your legislators at 1-800-889-0229.

Don't let developer lobbyists leave us with even higher tax bills. Contact your legislators today!

SB 768 would increase taxes on Virginians by:

• Increasing the Grantors Tax paid by every home seller by an additional 20 cents per $100 in value. (Except on sellers in Northern Virginia and Hampton Roads who already face a 40 cent Grantor’s Tax increase for transportation)
• Ending the cash proffer system by developers for rezonings. Proffers are cash and in-kind payments by developers to help offset the cost of new development.
• Introducing impact fees that severely reduce developer contributions by 50% or more per new home constructed.
• Eliminating developer in-kind contributions for many community amenities and public infrastructure.
• Pushing growth into rural areas where the new impact fees would not apply.

The people of Virginia clearly spoke for better growth management in the 2007 local elections across the Commonwealth. During the recent speculative boom, builders took advantage of extremely-low interest rates and exotic mortgages to dramatically increase prices and profits.

Yet the development industry continues to look for subsidies to support poorly planned growth at the expense of Virginia taxpayers. We need to speak up for better planned growth in Virginia.

For more information: Learn how you can track the important bills and find out who represents you in Richmond. You can also send us an email.

We'll keep you updated.

Sincerely,

Stewart Schwartz,
Executive Director

What is the proffer system?
The proffer system, while not perfect, was developed with developers/builders so they would make a voluntary and fair contribution to the costs of rezonings (usually for more units). 

In 2007, 88 counties, 36 cities and 157 towns were eligible to use cash proffers, and many do.  You can look at this survey by the State of Virginia to learn if your locality uses cash proffers and how (click on the 2006-07 report).

Proffers (including in-kind) are currently used to help pay for:
Roads and transit, interchange improvements and other transportation benefits
Schools
Parks
Police/fire resources
Libraries
Affordable housing trust funds
Water/sewer and other needs generated by new development.

SB 768 proposes a substitute “impact fees” system that would severely reduce those contributions – by 50% or more per new home constructed. Further, the bill gives so many off-setting credits that the payments could shrink to virtually nothing. All this means that taxpayers will be asked to shoulder even more of the burden to pay for all these facilities.

Why are these impact fees are bad for taxpayers?
While developers are offering to pay the fees on by right development, which hasn’t been permitted before, this “deal” is not worth taking because:

• The fees are very low and won’t come close to covering the costs of large rezonings.
• The fees won’t apply outside of narrowly defined service areas.
• The fees will NOT apply to previously approved subdivisions and site plans – meaning it won’t address most outdated zoning.
• The fees are too complex to administer.

How to Track Your 2008 Legislature
Stay up to date on the full range of conservation issues in the 2008 General Assembly!

Virginia Conservation Network (VCN)
Background papers on the conservation legislative agenda and information about Lobby Day.

Virginia League of Conservation Voters (VALCV)
Quick-look at bills endorsed by VCN and VALCV.  Sign up for CAV! Alerts.

Reconnecting Virginia
A campaign of the Coalition for Smarter Growth, Piedmont Environmental Council and partners to outline a transportation reform agenda.  Last updated in spring 2007, but still valuable because while we have achieved some of the reforms, there are more still to go.

Who is my Legislator?
Who is my legislator? Use this service on the General Assembly website to find your Senator and Delegate.

If you already know who your legislators are, contact information is available on the General Assembly website. Click on the name of your Senator and Delegate to obtain contact information for both the district office and Richmond office.

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