National Academies Press: OpenBook

Guidebook to Funding Transportation Through Land Value Return and Recycling (2018)

Chapter: Appendix A - Acronyms and Glossary

« Previous: Chapter 5 - Making Land Value Return Successful
Page 77
Suggested Citation:"Appendix A - Acronyms and Glossary." National Academies of Sciences, Engineering, and Medicine. 2018. Guidebook to Funding Transportation Through Land Value Return and Recycling. Washington, DC: The National Academies Press. doi: 10.17226/25110.
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Page 77
Page 78
Suggested Citation:"Appendix A - Acronyms and Glossary." National Academies of Sciences, Engineering, and Medicine. 2018. Guidebook to Funding Transportation Through Land Value Return and Recycling. Washington, DC: The National Academies Press. doi: 10.17226/25110.
×
Page 78
Page 79
Suggested Citation:"Appendix A - Acronyms and Glossary." National Academies of Sciences, Engineering, and Medicine. 2018. Guidebook to Funding Transportation Through Land Value Return and Recycling. Washington, DC: The National Academies Press. doi: 10.17226/25110.
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Page 79

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A-1 Acronyms AASHTO American Association of State Highway and Transportation Officials CCLC Chevy Chase Land Company CFR Code of Federal Regulations CMAP Chicago Metropolitan Agency for Planning CRC Copley Square Citizens’ Review Committee DOT Department of Transportation FHWA Federal Highway Administration FTA Federal Transit Administration GIS geographic information system IAAO International Association of Assessing Officers ITE Institute of Transportation Engineers MOU memorandum of understanding MPO metropolitan planning organization MTP Metropolitan Transportation Plan MTR Hong Kong rail agency MWAA Metropolitan Washington Airports Authority NoMa North of Massachusetts Avenue (a Washington, D.C., neighborhood) ReTRAC Reno Rail Transportation Access Corridor RTP Regional Transportation Plan SCAG Southern California Association of Governments SSA special service area STIP Statewide Transportation Improvement Program TID transportation improvement district TIF tax increment financing TIFIA Transportation Infrastructure Finance and Innovation Act TIP Transportation Improvement Program TRZ transportation reinvestment zone TSDC transportation system development charge TUF transportation utility fee WMATA Washington Metropolitan Area Transit Authority Glossary air rights. Owning land includes the right to use and develop the space above the land. The right to develop the space above the land can be bought and sold separately from the land. A P P E N D I X A Acronyms and Glossary

A-2 Guidebook to Funding Transportation Through Land Value Return and Recycling beneficiary pays principle. Those who benefit from the transportation system should bear responsibility for its costs. betterment levy. A one-time payment based on the actual (or estimated) increase in land value for a particular property resulting from new or improved infrastructure. Intended to return to the public sector a portion of the incremental increase in land value generated by well- performing infrastructure, a betterment levy is a land value return method. cost principle. Those who impose costs on the transportation system should compensate the public for those costs. development impact fee. A one-time charge to cover costs incurred by the public sector in pro- viding needed infrastructure, including transportation, to serve a new development. Because the fee is based on increased public spending associated with private development, the fee is a cost reimbursement, or land value return–like. exaction or proffer. A one-time requirement on a private developer to provide in-kind services, property, or cash payment as a condition of development approval. Intended to cover costs that otherwise would be incurred by the public sector in providing needed infrastructure, including transportation, an exaction or proffer is a cost avoidance measure, or land value return–like. joint development fee or interface fee. Joint development is the cooperative undertaking of a development project by a public agency and a private developer. Joint development may include the sale or lease of public land or air rights, as described above. Joint development also can include fees for the permission to develop publicly owned land or air rights spatially coincidental or adjacent to a transportation facility or both. An interface fee is a similar fee paid for a direct connection to a transit facility. These fees constitute a land value return method if the fee represents the market value of the development rights. land value return and recycling. The public recovery of a portion of the increased land value created by transportation performance gains that result from public investment. The returned value can be recycled for the long-term needs of existing infrastructure or used to create new infrastructure. land value tax or split rate tax. A recurring charge on only the land value portion of property, not including improvements (such as buildings). Some jurisdictions, instead of applying a pure land value tax, apply two tax rates—a reduced rate on improvement value and a higher rate on land value. This is known as a split rate property tax. By shifting the property tax from the value of privately created improvements to the value of the land (created by well-performing publicly created infrastructure and services), payments are more in proportion with benefits from public investments. A land value tax is, therefore, a land value return method. lease of public land or public air rights. The lease of publicly owned land or air rights at a mar- ket value price that includes value imparted to the land or air rights by nearby public infrastruc- ture. Lease payments are, therefore, a land value return method. Land value increases created by future infrastructure improvements also can be returned through future lease renewals and renegotiations. public good or service. Like some transportation infrastructure (e.g., roadways), a public good or service has certain characteristics that make it difficult to establish a market price in the same manner as for private goods. Public goods and services are (a) nonrivalrous (i.e., one person’s consumption of the good or service does not diminish its availability to others) or (b) nonexcludable (i.e., once the good or service has been produced, excluding someone from enjoying it is difficult or impossible, regardless of whether or not a person has paid for it) or both.

Acronyms and Glossary A-3 revenue segregation. Separation of some general revenue collected by a jurisdiction for specific purposes. This is similar to a revenue-sharing arrangement. sale of public land or public air rights. The sale of publicly owned land or air rights at a market value price that includes value imparted to the land or air rights by nearby public infrastruc- ture. Payment of the sale price is, therefore, a land value return method. Land value return, however, is limited to the value existing at the time of sale. Owing to the one-time nature of the sale, land value increases created by future infrastructure investments will not be returned to the public. special assessment fee. A fee levied within a defined geographic area that is determined to receive a unique and special benefit from an infrastructure investment. Property owners within the area (the special assessment district) are charged a recurring additional fee on the value of their property. If the fee is based on the increase in land value resulting from the public infrastructure investment, it is a land value return method. If the fee is based on improve- ment value, it is instead a transfer of privately created value to the public sector, a land value return–like tax. tax increment financing. Tax increment financing is a mechanism for collecting all or part of future tax revenue—above an established base level—within a designated area that will benefit from a transportation investment. Property owners pay the same taxes (at the same tax rate) that they would in the absence of a tax increment financing district; however, a portion of tax revenues that exceeds the base level amount (the tax increment) is set aside and dedicated to pay for new infrastructure. Tax increment financing is, therefore, revenue segregation or land value return–like. transportation utility fee. An ongoing fee paid by real estate occupants that is based on the intensity and type of land use. Transportation utility fees are typically used to pay for trans- portation operation and maintenance costs. The fee is based on the cost of estimated trans- portation utilization (not actual use) and does not seek to recover capital costs; therefore, it is a hybrid between a user fee and cost reimbursement, or land value return–like. value capture. A broad range of funding methods related to real estate, regardless of whether these methods involve public recovery of publicly created land values or privately created building values. Elsewhere across the world, value capture has come to include additional measures based on local economic activity (e.g., sales, payroll). Traditionally, however, value capture refers to real estate–based approaches.

Next: Appendix B - Summary of Case Examples »
Guidebook to Funding Transportation Through Land Value Return and Recycling Get This Book
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TRB's National Cooperative Highway Research Program (NCHRP) Research Report 873: Guidebook to Funding Transportation Through Land Value Return and Recycling presents guidance on ways to mobilize some portion of property-value increases to fund maintenance and operations as well as investment in the infrastructure. Because local government typically has authority to deal with matters related to land use and land-related revenue-generating mechanisms, access to land value return and recycling—a subset of real estate–based value capture methods—may require enabling legislation or partnering with local agencies. This report includes examples of applications of land value return and recycling as well as model legislation and institutional structures to facilitate the strategy. A PowerPoint presentation assists users of the guide in presenting the concept and methods for using land value return and recycling to a broad audience. Appendix G: NCHRP Project 19-13 Report is available online.

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