Bill Text: VA HB1455 | 2017 | Regular Session | Prefiled
Bill Title: Real property tax; partial exemption for certain commercial and industrial structures.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-02-17 - Governor: Acts of Assembly Chapter text (CHAP0024) [HB1455 Detail]
Download: Virginia-2017-HB1455-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §58.1-3221 of the Code of Virginia is amended and reenacted as follows:
§58.1-3221. Partial exemption for certain rehabilitated, renovated or replacement commercial or industrial structures.
A. The governing body of any county, city or town may, by
ordinance, provide for the partial exemption from taxation of real estate on
which any structure or other improvement no less than twenty 20 years of age, or fifteen 15
years of age if the structure is located in an area designated as an enterprise
zone by the Commonwealth or as a technology zone
by any county, city or town
pursuant to §58.1-3851, has undergone
substantial rehabilitation, renovation or replacement for commercial or
industrial use, subject to such conditions as the ordinance may prescribe. The
ordinance may, in addition to any other restrictions hereinafter provided,
restrict such exemptions to real property located within described zones or
districts whose boundaries shall be determined by the governing body. The
governing body of a county, city or town may establish criteria for determining
whether real estate qualifies for the partial exemption authorized by this
provision and may require the structure to be older than twenty 20 years of age, or fifteen 15
years of age if the structure is located in an area designated as an enterprise
zone by the Commonwealth, or as a technology zone
by any county, city or town pursuant to §58.1-3851 or
place such other restrictions and conditions on such property as may be
prescribed by ordinance. Such ordinance may also provide for the partial
exemption from taxation of real estate which that has been substantially
rehabilitated by complete replacement for commercial and industrial use.
B. The partial exemption provided by the local governing body
may not exceed an amount equal to the increase in assessed value resulting from
the rehabilitation, renovation or replacement of the commercial or industrial
structure as determined by the commissioner of revenue or other local assessing
officer or an amount up to fifty 50 percent of the cost of
rehabilitation, renovation or replacement as determined by ordinance. The
exemption may commence upon completion of the rehabilitation, renovation or
replacement, or on January 1 of the year following completion of the
rehabilitation, renovation or replacement and shall run with the real estate
for a period of no longer than fifteen 15 years. The governing body
of a county, city or town may place a shorter time limitation on the length of
such exemption, or reduce the amount of the exemption in annual steps over the
entire period or a portion thereof, in such manner as the ordinance may
prescribe.
C. Nothing in this section shall be construed as to permit the commissioner of the revenue to list upon the land book any reduced value due to the exemption provided in subsection B.
D. The governing body of any county, city or town may assess a
fee not to exceed one hundred twenty-five
dollars $125 for
residential properties, or two hundred fifty $250 dollars for commercial,
industrial, and/or apartment properties of six units or more, for processing an application
requesting the exemption provided by this section. No property shall be
eligible for such exemption unless the appropriate building permits have been
acquired and the commissioner of the revenue or assessing officer has verified
that the rehabilitation, renovation or replacement indicated on the application
has been completed.
E. Where rehabilitation is achieved through demolition and replacement of an existing structure, the exemption provided in subsection A shall not apply when any structure demolished is a registered Virginia landmark or is determined by the Department of Historic Resources to contribute to the significance of a registered historic landmark.
