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
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.
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
We'll keep you updated.
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
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
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
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
- 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!
Conservation Network (VCN)
Background papers on the conservation legislative agenda and
information about Lobby Day.
League of Conservation Voters (VALCV)
Quick-look at bills endorsed by VCN and VALCV. Sign up
for CAV! Alerts.
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?
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
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