If Land Use has to be Re-Validated, Why Not Revenue Sharing?

If Albemarle County is forcing landowners to re-validate and prove that their taking advantage of the land use tax break is a valid use …

County residents getting land use tax break are urged to send in revalidation forms as deadline looms

Albemarle County landowners with property in the land use taxation program have less than three weeks to file their new revalidation forms. As of today, less than half of the participants have returned their paperwork according to County Assessor Bob Willingham.

After September 1, 2009, the County will charge a $125 late fee to process the revalidation forms documenting that a property still qualifies for the program.  If a landowner has not returned the revalidation forms by December 5, 2009, they will face the possibility of being removed from the land use taxation program and subject to paying “roll back” taxes. In that scenario, the landowner would have to pay real estate property taxes at the fair market value for the previous five years.

Last October, the Board of Supervisors voted to require the revalidation process as a way of answering critics who charged the program was being abused by property owners who were not actually using their land for agricultural, open space, or forestry purposes. The County has never previously required participating landowners to revalidate their property. The program has been in place since 1973.

Shouldn’t the City of Charlottesville and the County of Albemarle have to re-validate the revenue sharing agreement?

This description of the revenue sharing agreement between the City of Charlottesville and Albemarle County appears in Albemarle’s annual budget.^[1]

An Annexation and Revenue Sharing Agreement dated February 17, 1982, between the County of Albemarle and the City of Charlottesville was approved in a public referendum on May 18, 1982. The agreement required the County and the City to annually contribute portions of their respective real property tax bases and revenues to a Revenue and Economic Growth Sharing Fund. Distribution of the fund and the resulting net transfer of funds will be made on each January 31 while this agreement remains in effect.

During the time this agreement is in effect, the City will not initiate any annexation procedures against the County. Also, pursuant to this agreement, a committee was created to study the desirability of combining the governments and the services currently provided. The agreement became effective on July 1, 1982 and remains in effect until:

• The County and City are consolidated into a single political subdivision; or
• The concept for independent cities presently existing in Virginia is altered by the State law in such a manner that real property in the City becomes part of the County’s tax base; or
• The County and City mutually agree to cancel or change the agreement.