Will Vehicle Fee Replace Proffers?

This Wednesday, November 14th, the Hanover County Board of Supervisors will receive a report from its appointed Cash Proffer and Capital Funding Committee. Although a split decision, the committee will recommend the elimination of proffers. To offset the loss of revenue from eliminated proffers, the committee will propose that the Board of Supervisors implement taxes and/or fees, including a vehicle fee.

Remember the car windshield decal? In the past, the vehicle fee was required for every car, truck, trailer and motorcycle that used county roads. Farm vehicles were excluded. Car decals at that time cost residents $10. How much will this fee be, if revived? (Note: The Town of Ashland is excluded.)

What are proffers?

Proffers are a one-time fee paid by the developer to help offset the cost of services demanded by residents of new housing being built. Although the costs of services are ongoing, proffers are a ‘voluntary’ set amount to help the county, and therefore existing taxpayers, pay for the capital cost of schools, roads, fire/police, libraries and parks. Capital costs, for example, are buildings and major repairs.

Every new home built on a lot of less than 10 acres, one that was rezoned for residential construction, is subject to proffers. The proffer is rolled into the total purchase price of the new home. Proffer amounts are set by the Board of Supervisors and the monies are applied to capital costs, not services.

The Board of Supervisors meeting on Nov. 14th begins at 2 p.m. The Proffer report is early on the agenda. Please arrive by 2 p.m. because early agenda items move along quickly. It’s expected that no action will be taken at this time.

The committee summary and entire report is available on the county website – Board of Supervisors: Meetings/Agendas: Agendas: Nov. 14, 2012. Click on Item VII highlighted in yellow. A direct link isn’t available.

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