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1997 SESSION


SENATE JOINT RESOLUTION NO. 373
Directing the Commission on State and Local Government Responsibility and Taxing Authority to study funding mechanisms and creative approaches to meet the infrastructure needs of rapidly growing localities.

Agreed to by the Senate, February 17, 1997
Agreed to by the House of Delegates, February 13, 1997

WHEREAS, a number of Virginia's localities are experiencing rapid population growth; and

WHEREAS, one of the primary effects of such growth is an increasing need for additional infrastructure such as schools, libraries, parks and public safety facilities; and

WHEREAS, the utilization of funding mechanisms currently available to localities to finance the cost of infrastructure has proven inadequate or undesirable to fund the needs that rapid growth can create; and

WHEREAS, incentives for deferring the development of property zoned for residential use may assist localities to cope with demands for increased services and infrastructure resulting from growth; and

WHEREAS, Article 4 (§ 58.1-3229 et seq.) of Title 58.1 of the Code of Virginia authorizes local governments to establish land use taxation programs providing for the special assessment of, and deferral of real estate taxes on, real estate devoted to agricultural, horticultural, forest or open-space uses; and

WHEREAS, land use taxation programs tend to preserve existing uses of property by reducing the likelihood that increased real estate tax will induce owners to develop their property; and

WHEREAS, localities are not authorized to establish a class of property for land use taxation purposes consisting of underdeveloped or unimproved property zoned for residential use; and

WHEREAS, while previous legislative studies have examined alternatives that can aid localities in providing infrastructure, such as privatization, public/private partnerships, regional facilities and services, adequate public facilities ordinances, and impact fees, consensus regarding these alternatives has been elusive; and

WHEREAS, a critical component of the Commonwealth's respected fiscal strength and quality of life is the financial integrity of its local governments coupled with adequate capital funding sources to provide necessary government services and facilities; and

WHEREAS, not only local government officials, but also the development community and the general citizenry recognize the need for localities to be able to obtain revenue to pay for infrastructure in a fair and equitable manner; and

WHEREAS, House Joint Resolution No. 532 (1997) continues the Commission on State and Local Government Responsibility and Taxing Authority for the purpose of examining state and local services and the revenues raised to provide those services; now, therefore, be it

RESOLVED by the Senate, the House of Delegates concurring, That the Commission on State and Local Government Responsibility and Taxing Authority be directed to study funding mechanisms and creative approaches to meet the infrastructure needs of rapidly growing localities.

In conducting its study, the commission shall, drawing on information from past legislative studies, if necessary, and the results of similar studies conducted in other states, assess the infrastructure needs that exist in rapidly growing localities, and make recommendations on funding mechanisms. During its deliberations, the commission shall examine the addition of a class of property for land use taxation purposes consisting of underdeveloped or unimproved property zoned for residential use, provided no changes are made to the existing land use taxation program that would diminish present benefits.

The commission shall seek the input and participation of representatives of the Virginia Municipal League, the Virginia Association of Counties, the State Land Evaluation Advisory Council, local governments, the real estate industry, and the home building industry. All agencies of the Commonwealth shall provide assistance to the commission, upon request.

The commission shall complete its work in time to submit its findings and recommendations to the Governor and the 1998 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents.

Implementation of this resolution is subject to subsequent approval and certification by the Joint Rules Committee. The Committee may withhold expenditures or delay the period for the conduct of the study.