Bonnie Cranmer
Contributing writer
The Craig County Board of Supervisors held a work session on Dec. 5. The board and the public attendees heard from Jennifer Shaver Friedel, J.D. who is the Director of the Land Use-Value Assessment Program. The program is part of the Department of Agricultural and Applied Economics at Virginia Tech.
The presentation included an overview of the Code of Virginia, and maps detailing use-value localities utilizing the program. Craig County is the last county in this part of Virginia without a land use-value program. The map of Virginia counties detailed how Craig is surrounded by counties offering incentives to landowners who are providing agricultural products to the market, and providing jobs in agriculture.
The presentation continued with two types of use-value determinations, which local Commissioners of Revenue are not required to use. One is net-income; capitalized (income approach) and the second is cash rental rates; capitalized (rental rate approach). The presentation detailed the differences, how each type of land is determined and how each approach can impact revenue. The sources used for those determinations are also provided in the document.
Angie Guthrie-Ponton has gathered a group of farmers in Craig County who believe in this process and want to move forward to protect Craig’s agricultural heritage. “Farmers will pay the same amount on their house and other structures like all other citizens,” she states. If a landowner wants to participate in the program, they must show income from the land.
The types of land identified in most land use-value programs fall into three categories; agricultural and horticultural land, forested land and open space. The citizen committee has worked since early this year to provide research, recommendations and guidance to the Board of Supervisors as they consider potential changes. The signed petitions provided by the group to the Board several months ago demonstrated the community’s interest and support for consideration of this issue.
The presentation continued with potential impacts on county revenue, which is the primary concern of many citizens. “The question I’ve received the most often from constituents is “what will it cost?” board member Jordan Labiosa shared. A pdf document of the presentation is available from Labiosa or directly from the office of Jennifer Shaver Friedel at Virginia Tech. Estimates provided potential increases to existing tax rates of 7-11%, to compensate for the loss of revenue, depending on participation and eligibility in the land use-value program. An increase in local real estate taxes was the only revenue source considered in the presentation to compensate for the loss of revenue from the land use-value program. Additional hours for county staff for maintenance of the program is another concern.
The farmers committee has done extensive research on the impact of the program to other localities. Not all farmers will choose to participate, as requirements to hold property for a number of years, activities on the land, and sales of the land are limited. The program can be developed with specific considerations for Craig County land use and potential future growth. The committee is meeting again in the coming weeks to discuss further recommendations to the board, and provide additional funding sources to support the program. Contact Dan Collins, county administrator, dcollins@craigcountyva.gov or Angie Guthrie-Ponton, farmers committee guthrieinsurance@yahoo.com for more details.
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