{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3203.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3203.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3203.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3203.html"}],"law_id":83715,"edition_id":1,"section_id":83715,"structure_id":16476,"section_number":"58.1-3203","catch_line":"Taxation of certain leasehold interests; concessions","history":"Code 1950, \u00a7 58-758.1; 1975, c. 374; 1976, c. 418; 1979, c. 359; 1981, c. 431; 1983, c. 549; 1984, c. 675; 1992, c. 842; 1996, c. 478; 2006, c. 922; 2015, cc. 87, 234; 2018, c. 437.","full_text":"A\n\nAll leasehold interests in real property that is exempt from assessment for taxation from the owner shall be assessed for local taxation to the lessee. If the remaining term of the lease is 50 years or more, or the lease permits the lessee to acquire the real property for a nominal sum at the completion of the term, such leasehold interest shall be assessed as if the lessee were the owner. Otherwise, such assessment shall be reduced two percent for each year that the remainder of such term is less than 50 years; however, no such assessment shall be reduced more than 85 percent. If the lessee has a right to renew without the consent of the lessor, the term of such lease shall be the sum of the original lease term plus all such renewal terms.B\n\nWhen any real property is exempt from taxation under Section 6 (a)(1) or (2) or by designation under Section 6 (a)(6) of Article X of the Constitution of Virginia, the leasehold interest in such property may also be exempt from taxation, provided that the property is leased to a lessee that is exempt from taxation pursuant to § 501(c) of the Internal Revenue Code or to a lessee that is entitled to or has received federal rehabilitation tax credits relating to the property pursuant to 26 U.S.C. § 47 or any successor thereto, and is used exclusively by such lessee primarily for charitable, literary, scientific, cultural, or educational purposes. No leasehold interest or concession, as defined in § 33.2-1800, of tax exempt property of a governmental agency shall be subject to assessment for local property tax purposes where the property is leased to a public service corporation or subsidiary thereof or a nonstock, nonprofit corporation whose occupation, use, or operation of the tax exempt property is in aid of or promotes the governmental purposes set out in Chapter 10 (§ 62.1-128 et seq.) of Title 62.1 or to a private entity that is party to a concession agreement with a responsible public entity pursuant to the Public-Private Transportation Act of 1995 (§ 33.2-1800 et seq.) or to similar federal law.C\n\nWhen any real property is exempt from taxation under § 15.2-7510, the leasehold interest in the property shall also be exempt from taxation.D\n\nThe provisions of this section shall not apply to any leasehold interests exempted or partially exempted by other provisions of law.","order_by":null,"text":{"0":{"id":300094,"text":"All leasehold interests in real property that is exempt from assessment for taxation from the owner shall be assessed for local taxation to the lessee. If the remaining term of the lease is 50 years or more, or the lease permits the lessee to acquire the real property for a nominal sum at the completion of the term, such leasehold interest shall be assessed as if the lessee were the owner. Otherwise, such assessment shall be reduced two percent for each year that the remainder of such term is less than 50 years; however, no such assessment shall be reduced more than 85 percent. If the lessee has a right to renew without the consent of the lessor, the term of such lease shall be the sum of the original lease term plus all such renewal terms.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":300095,"text":"When any real property is exempt from taxation under Section 6 (a)(1) or (2) or by designation under Section 6 (a)(6) of Article X of the Constitution of Virginia, the leasehold interest in such property may also be exempt from taxation, provided that the property is leased to a lessee that is exempt from taxation pursuant to § 501(c) of the Internal Revenue Code or to a lessee that is entitled to or has received federal rehabilitation tax credits relating to the property pursuant to 26 U.S.C. § 47 or any successor thereto, and is used exclusively by such lessee primarily for charitable, literary, scientific, cultural, or educational purposes. No leasehold interest or concession, as defined in § 33.2-1800, of tax exempt property of a governmental agency shall be subject to assessment for local property tax purposes where the property is leased to a public service corporation or subsidiary thereof or a nonstock, nonprofit corporation whose occupation, use, or operation of the tax exempt property is in aid of or promotes the governmental purposes set out in Chapter 10 (§ 62.1-128 et seq.) of Title 62.1 or to a private entity that is party to a concession agreement with a responsible public entity pursuant to the Public-Private Transportation Act of 1995 (§ 33.2-1800 et seq.) or to similar federal law.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":300096,"text":"When any real property is exempt from taxation under § 15.2-7510, the leasehold interest in the property shall also be exempt from taxation.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":300097,"text":"The provisions of this section shall not apply to any leasehold interests exempted or partially exempted by other provisions of law.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":16476,"edition_id":1,"name":"Taxable Real Estate","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":12997,"metadata":{},"date_created":"2026-06-26 04:20:08","date_modified":"2026-06-26 04:20:08","permalink":{"id":256889,"object_type":"structure","relational_id":16476,"identifier":"1","token":"58.1\/III\/32\/1","url":"\/58.1\/III\/32\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12997,"edition_id":1,"name":"Real Property Tax","identifier":"32","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":256887,"object_type":"structure","relational_id":12997,"identifier":"32","token":"58.1\/III\/32","url":"\/58.1\/III\/32\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78692,"structure_id":16476,"section_number":"58.1-3200","catch_line":"Real estate subject to local taxation; taxable real estate defined; leaseholds","url":"\/58.1-3200\/","token":"58.1\/III\/32\/1\/58.1-3200","metadata":false},{"id":69402,"structure_id":16476,"section_number":"58.1-3201","catch_line":"What real estate to be taxed; amount of assessment; public service corporation property","url":"\/58.1-3201\/","token":"58.1\/III\/32\/1\/58.1-3201","metadata":false},{"id":74343,"structure_id":16476,"section_number":"58.1-3202","catch_line":"Taxation of certain multi-unit real estate","url":"\/58.1-3202\/","token":"58.1\/III\/32\/1\/58.1-3202","metadata":false},{"id":83715,"structure_id":16476,"section_number":"58.1-3203","catch_line":"Taxation of certain leasehold interests; concessions","url":"\/58.1-3203\/","token":"58.1\/III\/32\/1\/58.1-3203","metadata":false},{"id":78421,"structure_id":16476,"section_number":"58.1-3204","catch_line":"Lands acquired from United States, etc., when beneficial ownership held prior to January 1","url":"\/58.1-3204\/","token":"58.1\/III\/32\/1\/58.1-3204","metadata":false},{"id":87501,"structure_id":16476,"section_number":"58.1-3205","catch_line":"Assessment of real property where interest less than fee is held by public body; exemption of interest of public body from taxation","url":"\/58.1-3205\/","token":"58.1\/III\/32\/1\/58.1-3205","metadata":false}],"previous_section":{"id":74343,"structure_id":16476,"section_number":"58.1-3202","catch_line":"Taxation of certain multi-unit real estate","url":"\/58.1-3202\/","token":"58.1\/III\/32\/1\/58.1-3202","metadata":false},"next_section":{"id":78421,"structure_id":16476,"section_number":"58.1-3204","catch_line":"Lands acquired from United States, etc., when beneficial ownership held prior to January 1","url":"\/58.1-3204\/","token":"58.1\/III\/32\/1\/58.1-3204","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3203\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 11 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1975, chapter 374; in 1976, chapter 418; in 1979, chapter 359; in 1981, chapter 431; in 1983, chapter 549; in 1984, chapter 675; in 1992, chapter 842; in 1996, chapter 478<\/a>; in 2006, chapter 922<\/a>; in 2015, chapters 87<\/a> and 234<\/a>; in 2018, chapter 437<\/a>.<\/p>","references":[{"id":82648,"section_number":"15.2-4607","catch_line":"Annual special improvements tax; use of revenues","order_by":null,"url":"\/15.2-4607\/"},{"id":61727,"section_number":"15.2-4706","catch_line":"Annual special improvement tax; use of revenues","order_by":null,"url":"\/15.2-4706\/"},{"id":60807,"section_number":"15.2-4806","catch_line":"Annual special improvement tax; use of revenues","order_by":null,"url":"\/15.2-4806\/"},{"id":72392,"section_number":"15.2-5158","catch_line":"Additional powers of community development authorities","order_by":null,"url":"\/15.2-5158\/"},{"id":67988,"section_number":"2.2-1150.3","catch_line":"Lease of state military reservation property","order_by":null,"url":"\/2.2-1150.3\/"},{"id":63598,"section_number":"2.2-1155","catch_line":"Temporary transfer of use of property between state departments, agencies, and institutions; lease to private entities","order_by":null,"url":"\/2.2-1155\/"},{"id":67540,"section_number":"2.2-2342","catch_line":"Payments to Commonwealth or political subdivisions thereof; payments to the City of Hampton","order_by":null,"url":"\/2.2-2342\/"},{"id":72006,"section_number":"33.2-2005","catch_line":"Annual special improvements tax; use of revenues","order_by":null,"url":"\/33.2-2005\/"},{"id":64278,"section_number":"33.2-2105","catch_line":"Annual special improvements tax; use of revenues","order_by":null,"url":"\/33.2-2105\/"},{"id":69556,"section_number":"33.2-2705","catch_line":"Annual special improvements tax; use of revenues","order_by":null,"url":"\/33.2-2705\/"}],"refers_to":[{"id":73952,"section_number":"15.2-7510","catch_line":"Exemption from taxes or assessments","order_by":null,"url":"\/15.2-7510\/"},{"id":58174,"section_number":"33.2-1800","catch_line":"Definitions","order_by":null,"url":"\/33.2-1800\/"},{"id":63656,"section_number":"62.1-128","catch_line":"Authority created","order_by":null,"url":"\/62.1-128\/"}],"permalink":{"id":256903,"object_type":"law","relational_id":83715,"identifier":"58.1-3203","token":"58.1\/III\/32\/1\/58.1-3203","url":"\/58.1-3203\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3203\/","token":"58.1\/III\/32\/1\/58.1-3203","dublin_core":{"Title":"Taxation of certain leasehold interests; concessions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3203","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> All leasehold interests in real property that is exempt from assessment for taxation from the owner shall be assessed for local taxation to the lessee. If the remaining term of the lease is 50 years or more, or the lease permits the lessee to acquire the real property for a nominal sum at the completion of the term, such leasehold interest shall be assessed as if the lessee were the owner. Otherwise, such assessment shall be reduced two percent for each year that the remainder of such term is less than 50 years; however, no such assessment shall be reduced more than 85 percent. If the lessee has a right to renew without the consent of the lessor, the term of such lease shall be the sum of the original lease term plus all such renewal terms. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> When any real property is exempt from taxation under Section 6 (a)(1) or (2) or by designation under Section 6 (a)(6) of Article X of the Constitution of Virginia, the leasehold interest in such property may also be exempt from taxation, provided that the property is leased to a lessee that is exempt from taxation pursuant to § 501(c) of the Internal Revenue Code or to a lessee that is entitled to or has received federal rehabilitation tax credits relating to the property pursuant to 26 U.S.C. § 47 or any successor thereto, and is used exclusively by such lessee primarily for charitable, literary, scientific, cultural, or educational purposes. No leasehold interest or concession, as defined in § 33.2-1800<\/a>, of tax exempt property of a governmental agency shall be subject to assessment for local property tax purposes where the property is leased to a public service corporation or subsidiary thereof or a nonstock, nonprofit corporation whose occupation, use, or operation of the tax exempt property is in aid of or promotes the governmental purposes set out in Chapter 10 (§ 62.1-128<\/a> et seq.) of Title 62.1 or to a private entity that is party<\/span> to a concession agreement with a responsible public entity pursuant to the Public-Private Transportation Act of 1995 (§ 33.2-1800<\/a> et seq.) or to similar federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> When any real property is exempt from taxation under § 15.2-7510<\/a>, the leasehold interest in the property shall also be exempt from taxation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The provisions of this section shall not apply to any leasehold interests exempted or partially exempted by other provisions of law<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTAXATION OF CERTAIN LEASEHOLD INTERESTS; CONCESSIONS (\u00a7 58.1-3203)\n\nA. All leasehold interests in real property that is exempt from assessment for\ntaxation from the owner shall be assessed for local taxation to the lessee. If\nthe remaining term of the lease is 50 years or more, or the lease permits the\nlessee to acquire the real property for a nominal sum at the completion of the\nterm, such leasehold interest shall be assessed as if the lessee were the owner.\nOtherwise, such assessment shall be reduced two percent for each year that the\nremainder of such term is less than 50 years; however, no such assessment shall\nbe reduced more than 85 percent. If the lessee has a right to renew without the\nconsent of the lessor, the term of such lease shall be the sum of the original\nlease term plus all such renewal terms.\n\nB. When any real property is exempt from taxation under Section 6 (a)(1) or (2)\nor by designation under Section 6 (a)(6) of Article X of the Constitution of\nVirginia, the leasehold interest in such property may also be exempt from\ntaxation, provided that the property is leased to a lessee that is exempt from\ntaxation pursuant to § 501(c) of the Internal Revenue Code or to a lessee\nthat is entitled to or has received federal rehabilitation tax credits relating\nto the property pursuant to 26 U.S.C. § 47 or any successor thereto, and is\nused exclusively by such lessee primarily for charitable, literary, scientific,\ncultural, or educational purposes. No leasehold interest or concession, as\ndefined in § 33.2-1800, of tax exempt property of a governmental agency\nshall be subject to assessment for local property tax purposes where the\nproperty is leased to a public service corporation or subsidiary thereof or a\nnonstock, nonprofit corporation whose occupation, use, or operation of the tax\nexempt property is in aid of or promotes the governmental purposes set out in\nChapter 10 (§ 62.1-128 et seq.) of Title 62.1 or to a private entity that\nis party to a concession agreement with a responsible public entity pursuant to\nthe Public-Private Transportation Act of 1995 (§ 33.2-1800 et seq.) or to\nsimilar federal law.\n\nC. When any real property is exempt from taxation under § 15.2-7510, the\nleasehold interest in the property shall also be exempt from taxation.\n\nD. The provisions of this section shall not apply to any leasehold interests\nexempted or partially exempted by other provisions of law.\n\nHISTORY: Code 1950, \u00a7 58-758.1; 1975, c. 374; 1976, c. 418; 1979, c. 359; 1981,\nc. 431; 1983, c. 549; 1984, c. 675; 1992, c. 842; 1996, c. 478; 2006, c. 922;\n2015, cc. 87, 234; 2018, c. 437.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}