Model Ordinance for Taxation of Certain Erosion Control Improvements

Model Ordinance for Taxation of Certain Erosion Control Improvements

Be it ordained by the (County) (City) (Town) of ____________________

§ 1. Findings.

The (County) (City) (Town) _____________________ of finds that real estate that has been improved through the placement of rock or concrete breakwaters, bulkheads, gabions, revetments, or similar structural improvements installed to control erosion, and is used primarily for the purpose of abating or preventing pollution of the waters of the Commonwealth, within its boundaries is in the public interest; is hereby declared to be a separate class of property; and, shall constitute a classification for local taxation separate from other classifications of real property. Such real estate shall be taxed in accordance with the provisions of § 58.1-3665 of the Code of Virginia; and this ordinance.

§ 2. Applications for special assessment; fees.

(a) Applications for taxation of real estate on the basis of assessment for Erosion Control Structure shall be submitted to the commissioner of the revenue (real estate assessor) (director of finance) in the form required by the commissioner of the revenue (real estate assessor) (director of finance). The application shall include such additional schedules, photographs, and drawings as may be required by the commissioner of the revenue (real estate assessor) (director of finance).

(b) A separate application shall be filed for each parcel tract shown on the land book.

(c) An application fee of Ten dollars ($ 10.00) [OPTIONAL- up to a maximum of $50.00] shall accompany each application.

§3. Determination of improvement value and assessment.

(a) Promptly upon receipt of an application, the commissioner of the revenue (real estate assessor) (director of finance) shall determine whether the subject property meets the criteria for erosion control improvement structure assessment and taxation under this ordinance, § 58.1-3665 of the Code of Virginia, and the applicable erosion and sediment control practicesrecommended by the Director of the Department of Conservation and Recreation.

(b) The commissioner of the revenue (real estate assessor) (director of finance) shall determine whether the structural improvements to control erosion described in the application have been completed and were installed in accordance with the applicable state and federal permits and with the applicable erosion and sediment control practices recommended by the Director of the Department of Conservation and Recreation.

(c) The partial exemption authorized by this section shall not exceed:

(Note: Either (i), (ii) or (iii) as determined in the ordinance by the governing body of the county, city or town).

(i) all of the increase in the assessed value of the real property resulting from the placement of the structural improvements described as determined by the commissioner of the revenue or other local assessing officer; or,

(ii) a portion of the increase in the assessed value of the real property resulting from the placement of the structural improvements described as determined by the commissioner of the revenue or other local assessing officer; or,

(iii) fifty percent of the cost of such improvements.

(d) Any exemption:

(Note: Either (i), or (ii) as determined in the ordinance by the governing body of the county, city or town).

(i) may commence upon completion of the improvements; or,

(ii) may commence on January 1 of the year following such completion; and,

(iii) shall run with the real estate for a period not to exceed fifteen years.

(e) [OPTIONAL] The governing body of the county, city or town may provide that the amount or percentage of an exemption shall decrease in annual steps over the entire fifteen-year exemption period or a portion thereof. [See Example 1 and Example 2]

§4. Effective date.

This ordinance shall be effective for all tax years beginning on and after _____________________.

Explanatory comments and suggestions -* Although it is not required by §58.1-3665, much administrative confusion can be avoided if the owner is required to provide all information for the approval and processing of his application. Where necessary, he should be able to obtain information from the Director of the Department of Conservation and Recreation, the local Extension Service, the Natural Resources Conservation Service (formerly the Soil Conservation Service), and/or local Farm Service Agency (formerly the Agricultural Stabilization and Conservation Service) offices. When an applicant has more than one tract or parcel of land for which he desires special assessment, it will save administrative effort if he is encouraged to present the separate applications simultaneously.

EXAMPLE 1: Depreciation of 2% per year starting at 50% of the cost of such improvements over a 15 year period.

Example 2: Depreciation of 15% per 5 year interval starting at 50% of the cost of such improvements over a 15 year period.