Bill Text: VA HB1455 | 2017 | Regular Session | Engrossed
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-Engrossed.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
58.1-3850 ] , 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 58.1-3850 ] 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.
