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DEVELOPING A METHODOLOGY TO CAPTURE LAND VALUE UPLIFT AROUND TRANSPORT FACILITIES
ANNEX C: SUMMARY DEFINITION OF PROPERTY-RELATED FUNDING METHODS
Summary definition of funding methods
1. Business Rate Levy Charge on the Rating and Council Tax system, applied locally rather than nationally. Focus is upon tenant/occupier rather than landowner.
2. LABGI (TIF) Expected growth in property tax revenues are securitised to provide funds for infrastructure improvements The existing or potential uplift in property values caused by a new infrastructure improvement is identified. The associated increase in UBR can then be amortised and used as security for bond finance.
3. BID Allows levy to be raised on property in specified area. Proceeds used to fund infrastructure and other improvements
4. LVT/SVR Taxation based on value of land. Ranges from application in city context to uplift in land value, through to complete reform of the overall taxation system. It relates to land values rather than property values, and focuses on landowners
5. Greenfield Development Tax A one-off tax on the sale or granting of planning permission on a 'greenfield' site. The proceeds could be used to fund infrastructure improvements
6. Freehold Charge A levy on freehold property in a specific area (either London-wide or the 'impact area' of a scheme). The levy is applied to the uplift in property values in a specified area as a one-off charge
7. Planning Gain/Tariff A levy on new development in a designated area. This is based on changes in value. In the UK this is typified by Planning Gain (S75 agreements).
8. Buy-in Charge Methods that involve a 'charge' of some sort for landowners to capitalise on infrastructure improvements. Examples include Connection Charges, Transit Impact Fees, Density Bonusing and Joint Development. (May require use of CPO powers).
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