{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3245.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3245.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3245.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3245.2.html"}],"law_id":59024,"edition_id":1,"section_id":59024,"structure_id":15489,"section_number":"58.1-3245.2","catch_line":"Tax increment financing","history":"1988, c. 776; 1990, c. 296; 1994, c. 667; 2023, cc. 506, 507; 2024, cc. 225, 242.","full_text":"A\n\nThe governing body of any county, city or town may adopt tax increment financing by passing an ordinance designating a development project area and providing that real estate taxes in the development project area shall be assessed, collected and allocated in the following manner for so long as any obligations or development project cost commitments secured by the Tax Increment Financing Fund, hereinafter authorized, are outstanding and unpaid.1\n\nThe local assessing officer shall record in the land book both the base assessed value and the current assessed value of the real estate in the development project area.2\n\nReal estate taxes attributable to the lower of the current assessed value or base assessed value of real estate located in a development project area shall be allocated by the treasurer or director of finance pursuant to the provisions of this chapter.3\n\nReal estate taxes attributable to the increased value between the current assessed value of any parcel of real estate and the base assessed value of such real estate shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Tax Increment Financing Fund” to pay the principal and interest on obligations issued or development project cost commitments entered into to finance the development project costs.B\n\nThe governing body shall hold a public hearing on the need for tax increment financing in the county, city or town prior to adopting a tax increment financing ordinance. Notice of the public hearing shall be published three times in each newspaper of general circulation in such county, city or town, with the first publication appearing no more than 35 days before and the third publication appearing no less than seven days before the hearing. The notice shall include the time, place and purpose of the public hearing, define tax increment financing, indicate the proposed boundaries of the development project area, and propose obligations to be issued to finance the development project area costs.","order_by":null,"text":{"0":{"id":216413,"text":"The governing body of any county, city or town may adopt tax increment financing by passing an ordinance designating a development project area and providing that real estate taxes in the development project area shall be assessed, collected and allocated in the following manner for so long as any obligations or development project cost commitments secured by the Tax Increment Financing Fund, hereinafter authorized, are outstanding and unpaid.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":216414,"text":"The local assessing officer shall record in the land book both the base assessed value and the current assessed value of the real estate in the development project area.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":216415,"text":"Real estate taxes attributable to the lower of the current assessed value or base assessed value of real estate located in a development project area shall be allocated by the treasurer or director of finance pursuant to the provisions of this chapter.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":216416,"text":"Real estate taxes attributable to the increased value between the current assessed value of any parcel of real estate and the base assessed value of such real estate shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Tax Increment Financing Fund” to pay the principal and interest on obligations issued or development project cost commitments entered into to finance the development project costs.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":216417,"text":"The governing body shall hold a public hearing on the need for tax increment financing in the county, city or town prior to adopting a tax increment financing ordinance. Notice of the public hearing shall be published three times in each newspaper of general circulation in such county, city or town, with the first publication appearing no more than 35 days before and the third publication appearing no less than seven days before the hearing. The notice shall include the time, place and purpose of the public hearing, define tax increment financing, indicate the proposed boundaries of the development project area, and propose obligations to be issued to finance the development project area costs.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3"}},"ancestry":[{"id":15489,"edition_id":1,"name":"Tax Increment Financing","identifier":"4.1","label":"article","depth":4,"order_by":1,"parent_id":12997,"metadata":{},"date_created":"2026-06-26 03:55:29","date_modified":"2026-06-26 03:55:29","permalink":{"id":257373,"object_type":"structure","relational_id":15489,"identifier":"4.1","token":"58.1\/III\/32\/4.1","url":"\/58.1\/III\/32\/4.1\/","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":64629,"structure_id":15489,"section_number":"58.1-3245","catch_line":"Definitions","url":"\/58.1-3245\/","token":"58.1\/III\/32\/4.1\/58.1-3245","metadata":false},{"id":79324,"structure_id":15489,"section_number":"58.1-3245.1","catch_line":"Blighted areas constitute public danger","url":"\/58.1-3245.1\/","token":"58.1\/III\/32\/4.1\/58.1-3245.1","metadata":false},{"id":59024,"structure_id":15489,"section_number":"58.1-3245.2","catch_line":"Tax increment financing","url":"\/58.1-3245.2\/","token":"58.1\/III\/32\/4.1\/58.1-3245.2","metadata":false},{"id":60952,"structure_id":15489,"section_number":"58.1-3245.3","catch_line":"Copies of tax increment financing ordinance to local assessing officer and treasurer or director of finance","url":"\/58.1-3245.3\/","token":"58.1\/III\/32\/4.1\/58.1-3245.3","metadata":false},{"id":84670,"structure_id":15489,"section_number":"58.1-3245.4","catch_line":"Issuance of obligations for project costs","url":"\/58.1-3245.4\/","token":"58.1\/III\/32\/4.1\/58.1-3245.4","metadata":false},{"id":69062,"structure_id":15489,"section_number":"58.1-3245.4:1","catch_line":"No annual debt limits for certain cities","url":"\/58.1-3245.4_1\/","token":"58.1\/III\/32\/4.1\/58.1-3245.4_1","metadata":false},{"id":75051,"structure_id":15489,"section_number":"58.1-3245.5","catch_line":"Dissolving the Tax Increment Financing Fund","url":"\/58.1-3245.5\/","token":"58.1\/III\/32\/4.1\/58.1-3245.5","metadata":false}],"previous_section":{"id":79324,"structure_id":15489,"section_number":"58.1-3245.1","catch_line":"Blighted areas constitute public danger","url":"\/58.1-3245.1\/","token":"58.1\/III\/32\/4.1\/58.1-3245.1","metadata":false},"next_section":{"id":60952,"structure_id":15489,"section_number":"58.1-3245.3","catch_line":"Copies of tax increment financing ordinance to local assessing officer and treasurer or director of finance","url":"\/58.1-3245.3\/","token":"58.1\/III\/32\/4.1\/58.1-3245.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3245.2\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapter 776 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online. It has been modified 4 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 1990, chapter 296; in 1994, chapter 667<\/a>; in 2023, chapters 506<\/a> and 507<\/a>; in 2024, chapters 225<\/a> and 242<\/a>.<\/p>","references":[{"id":84670,"section_number":"58.1-3245.4","catch_line":"Issuance of obligations for project costs","order_by":null,"url":"\/58.1-3245.4\/"}],"refers_to":false,"permalink":{"id":257383,"object_type":"law","relational_id":59024,"identifier":"58.1-3245.2","token":"58.1\/III\/32\/4.1\/58.1-3245.2","url":"\/58.1-3245.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3245.2\/","token":"58.1\/III\/32\/4.1\/58.1-3245.2","dublin_core":{"Title":"Tax increment financing","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3245.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The governing body<\/span> of any county, city or town may adopt tax increment<\/span> financing by passing an ordinance<\/span> designating a development project area<\/span> and providing that real estate taxes in the development project area<\/span> shall be assessed, collected and allocated in the following manner for so long as any obligations<\/span> or development project cost<\/span> commitments<\/span> secured by the Tax Increment<\/span> Financing Fund, hereinafter authorized, are outstanding and unpaid. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The local assessing officer shall record in the land book both the base assessed value<\/span> and the current assessed value<\/span> of the real estate in the development project area<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Real estate taxes attributable to the lower of the current assessed value<\/span> or base assessed value<\/span> of real estate located in a development project area<\/span> shall be allocated by the treasurer or director of finance pursuant to the provisions of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Real estate taxes attributable to the increased value between the current assessed value<\/span> of any parcel of real estate and the base assessed value<\/span> of such real estate shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Tax Increment<\/span> Financing Fund” to pay the principal and interest on obligations<\/span> issued or development project cost<\/span> commitments<\/span> entered into to finance the development project costs<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The governing body<\/span> shall hold a public hearing<\/span> on the need for tax increment<\/span> financing in the county, city or town prior to adopting a tax increment<\/span> financing ordinance<\/span>. Notice of the public hearing<\/span> shall be published three times in each newspaper of general circulation in such county, city or town, with the first publication appearing no more than 35 days before and the third publication appearing no less than seven days before the hearing<\/span>. The notice shall include the time, place and purpose of the public hearing<\/span>, define tax increment<\/span> financing, indicate the proposed boundaries of the development project area<\/span>, and propose obligations<\/span> to be issued to finance the development project area<\/span> costs. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTAX INCREMENT FINANCING (\u00a7 58.1-3245.2)\n\nA. The governing body of any county, city or town may adopt tax increment\nfinancing by passing an ordinance designating a development project area and\nproviding that real estate taxes in the development project area shall be\nassessed, collected and allocated in the following manner for so long as any\nobligations or development project cost commitments secured by the Tax Increment\nFinancing Fund, hereinafter authorized, are outstanding and unpaid.\n\n 1. The local assessing officer shall record in the land book both the base\n assessed value and the current assessed value of the real estate in the\n development project area.\n\n 2. Real estate taxes attributable to the lower of the current assessed value\n or base assessed value of real estate located in a development project area\n shall be allocated by the treasurer or director of finance pursuant to the\n provisions of this chapter.\n\n 3. Real estate taxes attributable to the increased value between the current\n assessed value of any parcel of real estate and the base assessed value of\n such real estate shall be allocated by the treasurer or director of finance\n and paid into a special fund entitled the “Tax Increment Financing\n Fund” to pay the principal and interest on obligations issued or\n development project cost commitments entered into to finance the development\n project costs.\n\nB. The governing body shall hold a public hearing on the need for tax increment\nfinancing in the county, city or town prior to adopting a tax increment\nfinancing ordinance. Notice of the public hearing shall be published three times\nin each newspaper of general circulation in such county, city or town, with the\nfirst publication appearing no more than 35 days before and the third\npublication appearing no less than seven days before the hearing. The notice\nshall include the time, place and purpose of the public hearing, define tax\nincrement financing, indicate the proposed boundaries of the development project\narea, and propose obligations to be issued to finance the development project\narea costs.\n\nHISTORY: 1988, c. 776; 1990, c. 296; 1994, c. 667; 2023, cc. 506, 507; 2024, cc.\n225, 242.","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}}