In addition, Pennsylvania's statewide farmland preservation program is crafting an IPA program. In addition, this payment option enables jurisdictions to use accumulated and future dedicated revenues to protect land while it is still available and relatively affordable. In general, state and local governments can enter into IPAs if they have the authority to issue general obligation bonds. Because IPAs constitute long-term debt, agreements typically require the same approval process as bonds. Laws governing the issuance of bonds vary from state to state.
Some states require approval by the legislature, the voters or both.
For more information, contact state agencies that regulate municipal bond issuance, bond counsel or independent investment banking or public financial advisory firms. Funding An IPA program requires dedicated funds to cover the interest and principal payments. Howard County uses proceeds from a local real estate transfer tax and the county's share of a statewide agricultural transfer tax to support its program. Virginia Beach relies on revenue from a property tax increase and a tax on cellular phone use. The semi-annual interest paid on the outstanding balance of the purchase price is exempt from federal, state and local income taxes and can provide a supplementary income stream.