Wetland & Riparian Buffers | Shoreline Erosion Control Structures | Benefits | FAQs | Sample Ordinances
Protecting the quality of Virginia's water supplies and waterways is a top priority with all Virginians. As a result, each year millions of dollars are spent from federal, state and local government coffers to treat and protect our waters.
The 1998 Virginia General Assembly passed legislation introduced by the governor that allows local governments to provide additional protection to their waters without incurring out-of-pocket expenses. Localities can now grant tax incentives to encourage landowners to protect wetlands, riparian buffers and to develop erosion control structures, all of which will have a positive impact on water quality.
These new tools are strictly voluntary. The wetland and riparian buffer initiatives build on the Land Use Assessment program established in 1971 and used successfully by most counties and municipalities across Virginia. These new changes to the Code of Virginia were also drafted so that localities not using Land Use Assessment can still establish tax incentives for wetlands and riparian buffers. The shoreline erosion control tax reduction option is written so that localities have latitude in developing criteria, conditions and restrictions covering a partial tax exemption.
Specifics - Wetlands and riparian buffers
Under Title 58.1 of the Code of Virginia, wetlands and riparian buffers have been added to the definitions of "Real estate devoted to open-space use" under Chapter 36 on Land Use Assessment. For localities with existing Land Use Assessment ordinances, these can now be modified to include tax incentives for landowners preserving these areas. These changes also provide the following clarification in defining both:
Riparian buffer means an area of trees, shrubs or other vegetation, subject to a perpetual easement permitting inundation by water, that is (i) at least thirty-five feet in width, (ii) adjacent to a body of water, and (iii) managed to maintain the integrity of stream channels and shorelines and reduce the effects of upland sources of pollution by trapping, filtering, and converting sediments, nutrients, and other chemicals.
Wetlands means an area that is inundated or saturated by surface or ground water at a frequency or duration sufficient to support, and that under normal conditions does support, a prevalence of vegetation typically adapted for life in saturated soil conditions, and that is subject to a perpetual easement permitting inundation by water.
These definitions, with additional language in Article 5, Chapter 36 of Title 58.1, also allow those localities that do not have Land Use Assessment ordinances to provide real estate tax exemption or reduction by ordinance on those properties perpetually protected by easement. Landowners have several options in seeking perpetual easements either through public bodies or private non-profit organizations.
Shoreline erosion control structures
A separate piece of legislation also led to changes in Article 5, Chapter 36 of Title 58.1 (Other Exempt Property). A new section has been added to deal with the concept of "Environmentally Responsible Improvements." This gives localities the option of providing real estate reductions for the placement of permanent erosion control structures such as rock or concrete breakwaters, bulkheads, gabions, revetments or other structures installed to control erosion, or to abate or prevent pollution.
This new section provides a local option to create a local ordinance and authorizes the governing county or municipality to establish criteria for determining if real estate qualifies for the partial exemption authorized by this section.
The partial exemption authorized shall not exceed:
(i) all or a portion of the increase in the assessed value of the real property resulting from the placement of the structural improvements as determined by the commissioner of revenue or other local assessing officer, or
(ii) Fifty percent of the cost of such improvements, as determined by the county or municipality.
Any exemption:
(i) may commence upon completion of the improvements or on January 1 of the year following such completion; and,
(ii) shall run with the real estate for a period not to exceed fifteen years.
The governing body can set the ordinance so that the exemption may decrease in annual steps for any portion or the entire 15 year exemption period.
The primary benefits of these changes are improved water quality and the preservation of our precious natural resources.
In addition to the scenic and aesthetic values of tree-lined stream and river banks, riparian buffers and wetlands play an integral part in reducing nonpoint source, or runoff, pollution. Nonpoint source pollution has been identified as the major water quality problem facing the commonwealth today. Buffers and wetlands reduce levels of nitrogen, phosphorus and sediments running off farmland, residential lots, and our roads and streets, and reaching our waters.
Likewise, shoreline erosion control structures play a major role in reducing runoff, particularly of sediments. This reduction plays a major role in reducing the need for costly, time-consuming dredging – often at taxpayers* expense – in keeping our rivers navigable for commerce and recreational purposes.
The use of local ordinances to provide tax incentives for protecting wetlands, riparian buffers and installing erosion controls also rewards responsible landowner behavior. It encourages landowners to initiate the stewardship of our natural resources.
The locality also enjoys the many benefits of improved water quality and streams and waterways that are safe and appealing for recreational use and, where applicable, navigable for commercial purposes. All of this with no direct cost to the locality or taxpayers.
Of course tax exemptions mean a decrease in tax revenues. The size of the decrease will vary by locality. However, bear in mind that in may cases the lands being exempted for riparian buffers and wetlands have much greater natural than commercial value. Therefore, the threat of losing greater tax revenues from improvements on those lands is nominal. In cases where land use assessments are already in place, these lands are already taxed at a lower value.
In the case of erosion control, there may be cases where the partial exemption will be less than the actual loss of taxable real estate due to unabated erosion.
Frequently Asked Questions
Are these new ordinances required?
No. The development of new ordinances is a local option – it is up to the county or municipality to decide. If ordinances are adopted, the decision to protect wetlands, riparian buffers or to establish erosion controls is still a voluntary action by the landowner.
How many localities now have land-use assessment ordinances?
Virtually all Virginia counties and most towns and cities have some form of land use assessment ordinance. Approximately 50 counties now have an Open Space option.
How much tax revenue drain can be expected by adoption of these ordinances?
There have been no studies to determine the potential loss in tax revenue. It will certainly vary from locality to locality based on existing land use patterns. Keep in mind that most wetlands and riparian buffer areas aren*t conducive to development, and many are already being taxed at a much lower rate. Shoreline erosion controls are actually protecting the existence of taxable real estate. And all of these measures help prevent or lessen the need for local governments to spend taxpayer funds on pollution reduction or dredging efforts. They also keep waterways healthy, safe and viable for recreational and commercial purposes, which translates to potential income for the locality.
Is tax relief available to localities through the Water Quality Improvement Act?
Yes. According to the Water Quality Improvement Act 10-1.2132.C, Water Quality Improvement Funds may be used for "reimbursement to local governments for tax credits and other kinds of authorized tax relief that provides incentives for water quality improvements." To be eligible for reimbursement, localities would submit an application to the Virginia Department of Conservation and Recreation. The reimbursement would be reviewed on a competitive basis with all other special projects submitted for WQIA funding. Applications are accepted on an annual basis, with the deadline for submission typically in the fall.
Are there sample ordinances available for use by localities?
Yes, several model ordinances have been drafted. You can receive hard copies by calling the Virginia Department of Conservation and Recreation or by visiting direct links to sample ordinances:
Whom do I call for more information?
Learn more about model ordinances, Land Use Assessment, riparian buffers, wetlands, erosion control or NPS pollution by calling your local government or calling DCR at 1-877-42-WATER (429-2837).
