{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3245.8.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3245.8.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3245.8.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3245.8.html"}],"law_id":55261,"edition_id":1,"section_id":55261,"structure_id":14125,"section_number":"58.1-3245.8","catch_line":"Adoption of local enterprise zone development taxation program","history":"1997, c. 314; 2005, cc. 863, 884; 2023, cc. 506, 507; 2024, cc. 225, 242.","full_text":"A\n\nThe governing body of any county, city, or town may adopt a local enterprise zone development taxation program by passing an ordinance designating an enterprise zone located within its boundaries as a local enterprise zone; however, an ordinance may designate an area as a local enterprise zone contingent upon the designation of the area as an enterprise zone pursuant to Chapter 49 (\u00a7 59.1-538 et seq.) of Title 59.1. If the county, city, or town contains more than one enterprise zone, such ordinance may designate one or more as a local enterprise zone. If an enterprise zone is located in more than one county, city, or town, the governing body may designate the portion of the enterprise zone located within its boundaries as a local enterprise zone. An ordinance designating a local enterprise zone shall provide that all or a specified percentage of the real estate taxes, machinery and tools taxes, or both, in the local enterprise zone shall be assessed, collected and allocated in the following manner:1\n\nThe local assessing officer shall record in the appropriate books both the base assessed value and the current assessed value of the real estate or machinery and tools, or both, in the local enterprise zone.2\n\nReal estate taxes or machinery and tools taxes attributable to the lower of the current assessed value or base assessed value of real estate or machinery and tools located in a local enterprise zone shall be allocated by the treasurer or director of finance as they would be in the absence of such ordinance.3\n\nAll or the specified percentage of the increase in real estate taxes or machinery and tools taxes, or both, attributable to the difference between (i) the current assessed value of such property and (ii) the base assessed value of such property shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Local Enterprise Zone Development Fund” to be used as provided in § 58.1-3245.10. Such amounts paid into the fund shall not include any additional revenues resulting from an increase in the tax rate on real estate or machinery and tools after the adoption of a local enterprise zone development taxation ordinance, nor shall it include any additional revenues merely resulting from an increase in the assessed value of real estate or machinery and tools which were located in the zone prior to the adoption of a local enterprise zone development taxation ordinance unless such property is improved or enhanced.B\n\nThe governing body shall hold a public hearing on the need for a local enterprise zone development taxation program in the county, city, or town prior to adopting a local enterprise zone development taxation 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 local enterprise zone development taxation; indicate the proposed boundaries of the local enterprise zone; state whether all or a specified percentage of real property or machinery or tools, or both, will be subject to local enterprise zone development taxation; and describe the purposes for which funds in the Local Enterprise Zone Development Fund are authorized to be used.","order_by":null,"text":{"0":{"id":202638,"text":"The governing body of any county, city, or town may adopt a local enterprise zone development taxation program by passing an ordinance designating an enterprise zone located within its boundaries as a local enterprise zone; however, an ordinance may designate an area as a local enterprise zone contingent upon the designation of the area as an enterprise zone pursuant to Chapter 49 (\u00a7 59.1-538 et seq.) of Title 59.1. If the county, city, or town contains more than one enterprise zone, such ordinance may designate one or more as a local enterprise zone. If an enterprise zone is located in more than one county, city, or town, the governing body may designate the portion of the enterprise zone located within its boundaries as a local enterprise zone. An ordinance designating a local enterprise zone shall provide that all or a specified percentage of the real estate taxes, machinery and tools taxes, or both, in the local enterprise zone shall be assessed, collected and allocated in the following manner:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":202639,"text":"The local assessing officer shall record in the appropriate books both the base assessed value and the current assessed value of the real estate or machinery and tools, or both, in the local enterprise zone.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":202640,"text":"Real estate taxes or machinery and tools taxes attributable to the lower of the current assessed value or base assessed value of real estate or machinery and tools located in a local enterprise zone shall be allocated by the treasurer or director of finance as they would be in the absence of such ordinance.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":202641,"text":"All or the specified percentage of the increase in real estate taxes or machinery and tools taxes, or both, attributable to the difference between (i) the current assessed value of such property and (ii) the base assessed value of such property shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Local Enterprise Zone Development Fund” to be used as provided in § 58.1-3245.10. Such amounts paid into the fund shall not include any additional revenues resulting from an increase in the tax rate on real estate or machinery and tools after the adoption of a local enterprise zone development taxation ordinance, nor shall it include any additional revenues merely resulting from an increase in the assessed value of real estate or machinery and tools which were located in the zone prior to the adoption of a local enterprise zone development taxation ordinance unless such property is improved or enhanced.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":202642,"text":"The governing body shall hold a public hearing on the need for a local enterprise zone development taxation program in the county, city, or town prior to adopting a local enterprise zone development taxation 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 local enterprise zone development taxation; indicate the proposed boundaries of the local enterprise zone; state whether all or a specified percentage of real property or machinery or tools, or both, will be subject to local enterprise zone development taxation; and describe the purposes for which funds in the Local Enterprise Zone Development Fund are authorized to be used.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3"}},"ancestry":[{"id":14125,"edition_id":1,"name":"Local Enterprise Zone Development Taxation Program","identifier":"4.2","label":"article","depth":4,"order_by":1,"parent_id":12997,"metadata":{},"date_created":"2026-06-26 03:46:56","date_modified":"2026-06-26 03:46:56","permalink":{"id":257403,"object_type":"structure","relational_id":14125,"identifier":"4.2","token":"58.1\/III\/32\/4.2","url":"\/58.1\/III\/32\/4.2\/","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":85275,"structure_id":14125,"section_number":"58.1-3245.10","catch_line":"Use of funds deposited in the Local Enterprise Zone Development Fund","url":"\/58.1-3245.10\/","token":"58.1\/III\/32\/4.2\/58.1-3245.10","metadata":false},{"id":60653,"structure_id":14125,"section_number":"58.1-3245.11","catch_line":"Dissolving the Local Enterprise Zone Development Fund","url":"\/58.1-3245.11\/","token":"58.1\/III\/32\/4.2\/58.1-3245.11","metadata":false},{"id":82762,"structure_id":14125,"section_number":"58.1-3245.12","catch_line":"Local enterprise zone program for technology, defense, or green development zones","url":"\/58.1-3245.12\/","token":"58.1\/III\/32\/4.2\/58.1-3245.12","metadata":false},{"id":65687,"structure_id":14125,"section_number":"58.1-3245.6","catch_line":"Definitions","url":"\/58.1-3245.6\/","token":"58.1\/III\/32\/4.2\/58.1-3245.6","metadata":false},{"id":85056,"structure_id":14125,"section_number":"58.1-3245.7","catch_line":"Promotion of development of local enterprise zones","url":"\/58.1-3245.7\/","token":"58.1\/III\/32\/4.2\/58.1-3245.7","metadata":false},{"id":55261,"structure_id":14125,"section_number":"58.1-3245.8","catch_line":"Adoption of local enterprise zone development taxation program","url":"\/58.1-3245.8\/","token":"58.1\/III\/32\/4.2\/58.1-3245.8","metadata":false},{"id":86993,"structure_id":14125,"section_number":"58.1-3245.9","catch_line":"Copies of local enterprise zone development taxation ordinance to local assessing officer and treasurer or director of finance","url":"\/58.1-3245.9\/","token":"58.1\/III\/32\/4.2\/58.1-3245.9","metadata":false}],"previous_section":{"id":85056,"structure_id":14125,"section_number":"58.1-3245.7","catch_line":"Promotion of development of local enterprise zones","url":"\/58.1-3245.7\/","token":"58.1\/III\/32\/4.2\/58.1-3245.7","metadata":false},"next_section":{"id":86993,"structure_id":14125,"section_number":"58.1-3245.9","catch_line":"Copies of local enterprise zone development taxation ordinance to local assessing officer and treasurer or director of finance","url":"\/58.1-3245.9\/","token":"58.1\/III\/32\/4.2\/58.1-3245.9","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3245.8\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapter 314<\/a> 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. It has been modified 3 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 2005, chapters 863<\/a> and 884<\/a>; in 2023, chapters 506<\/a> and 507<\/a>; in 2024, chapters 225<\/a> and 242<\/a>.<\/p>","references":[{"id":65687,"section_number":"58.1-3245.6","catch_line":"Definitions","order_by":null,"url":"\/58.1-3245.6\/"}],"refers_to":[{"id":85275,"section_number":"58.1-3245.10","catch_line":"Use of funds deposited in the Local Enterprise Zone Development Fund","order_by":null,"url":"\/58.1-3245.10\/"},{"id":85120,"section_number":"59.1-538","catch_line":"Short title","order_by":null,"url":"\/59.1-538\/"}],"permalink":{"id":257425,"object_type":"law","relational_id":55261,"identifier":"58.1-3245.8","token":"58.1\/III\/32\/4.2\/58.1-3245.8","url":"\/58.1-3245.8\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3245.8\/","token":"58.1\/III\/32\/4.2\/58.1-3245.8","dublin_core":{"Title":"Adoption of local enterprise zone development taxation program","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3245.8","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The governing body of any county, city, or town may adopt a local enterprise zone<\/span> development taxation program by passing an ordinance<\/span> designating an enterprise zone located within its boundaries as a local enterprise zone<\/span>; however, an ordinance<\/span> may designate an area as a local enterprise zone<\/span> contingent upon the designation of the area as an enterprise zone pursuant to Chapter 49 (\u00a7 59.1-538<\/a> et seq.) of Title 59.1. If the county, city, or town contains more than one enterprise zone, such ordinance<\/span> may designate one or more as a local enterprise zone<\/span>. If an enterprise zone is located in more than one county, city, or town, the governing body may designate the portion of the enterprise zone located within its boundaries as a local enterprise zone<\/span>. An ordinance<\/span> designating a local enterprise zone<\/span> shall provide that all or a specified percentage of the real estate taxes, machinery and tools taxes, or both, in the local enterprise zone<\/span> shall be assessed, collected and allocated in the following manner: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The local assessing officer shall record in the appropriate books both the base assessed value<\/span> and the current assessed value<\/span> of the real estate or machinery and tools, or both, in the local enterprise zone<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Real estate taxes or machinery and tools taxes attributable to the lower of the current assessed value<\/span> or base assessed value<\/span> of real estate or machinery and tools located in a local enterprise zone<\/span> shall be allocated by the treasurer or director of finance as they would be in the absence of such ordinance<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> All or the specified percentage of the increase in real estate taxes or machinery and tools taxes, or both, attributable to the difference between (i) the current assessed value<\/span> of such property and (ii) the base assessed value<\/span> of such property shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Local Enterprise Zone<\/span> Development Fund” to be used as provided in § 58.1-3245.10<\/a>. Such amounts paid into the fund shall not include any additional revenues resulting from an increase in the tax rate on real estate or machinery and tools after the adoption of a local enterprise zone<\/span> development taxation ordinance<\/span>, nor shall it include any additional revenues merely resulting from an increase in the assessed value of real estate or machinery and tools which were located in the zone prior to the adoption of a local enterprise zone<\/span> development taxation ordinance<\/span> unless such property is improved or enhanced. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The governing body shall hold a public hearing<\/span> on the need for a local enterprise zone<\/span> development taxation program in the county, city, or town prior to adopting a local enterprise zone<\/span> development taxation 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 local enterprise zone<\/span> development taxation; indicate the proposed boundaries of the local enterprise zone<\/span>; state whether all or a specified percentage of real property or machinery or tools, or both, will be subject to local enterprise zone<\/span> development taxation; and describe the purposes for which funds in the Local Enterprise Zone<\/span> Development Fund are authorized to be used. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nADOPTION OF LOCAL ENTERPRISE ZONE DEVELOPMENT TAXATION PROGRAM (\u00a7 58.1-3245.8)\n\nA. The governing body of any county, city, or town may adopt a local enterprise\nzone development taxation program by passing an ordinance designating an\nenterprise zone located within its boundaries as a local enterprise zone;\nhowever, an ordinance may designate an area as a local enterprise zone\ncontingent upon the designation of the area as an enterprise zone pursuant to\nChapter 49 (\u00a7 59.1-538 et seq.) of Title 59.1. If the county, city, or town\ncontains more than one enterprise zone, such ordinance may designate one or more\nas a local enterprise zone. If an enterprise zone is located in more than one\ncounty, city, or town, the governing body may designate the portion of the\nenterprise zone located within its boundaries as a local enterprise zone. An\nordinance designating a local enterprise zone shall provide that all or a\nspecified percentage of the real estate taxes, machinery and tools taxes, or\nboth, in the local enterprise zone shall be assessed, collected and allocated in\nthe following manner:\n\n 1. The local assessing officer shall record in the appropriate books both the\n base assessed value and the current assessed value of the real estate or\n machinery and tools, or both, in the local enterprise zone.\n\n 2. Real estate taxes or machinery and tools taxes attributable to the lower of\n the current assessed value or base assessed value of real estate or machinery\n and tools located in a local enterprise zone shall be allocated by the\n treasurer or director of finance as they would be in the absence of such\n ordinance.\n\n 3. All or the specified percentage of the increase in real estate taxes or\n machinery and tools taxes, or both, attributable to the difference between (i)\n the current assessed value of such property and (ii) the base assessed value\n of such property shall be allocated by the treasurer or director of finance\n and paid into a special fund entitled the “Local Enterprise Zone\n Development Fund” to be used as provided in § 58.1-3245.10. Such\n amounts paid into the fund shall not include any additional revenues resulting\n from an increase in the tax rate on real estate or machinery and tools after\n the adoption of a local enterprise zone development taxation ordinance, nor\n shall it include any additional revenues merely resulting from an increase in\n the assessed value of real estate or machinery and tools which were located in\n the zone prior to the adoption of a local enterprise zone development taxation\n ordinance unless such property is improved or enhanced.\n\nB. The governing body shall hold a public hearing on the need for a local\nenterprise zone development taxation program in the county, city, or town prior\nto adopting a local enterprise zone development taxation ordinance. Notice of\nthe public hearing shall be published three times in each newspaper of general\ncirculation in such county, city, or town, with the first publication appearing\nno more than 35 days before and the third publication appearing no less than\nseven days before the hearing. The notice shall include the time, place and\npurpose of the public hearing; define local enterprise zone development\ntaxation; indicate the proposed boundaries of the local enterprise zone; state\nwhether all or a specified percentage of real property or machinery or tools, or\nboth, will be subject to local enterprise zone development taxation; and\ndescribe the purposes for which funds in the Local Enterprise Zone Development\nFund are authorized to be used.\n\nHISTORY: 1997, c. 314; 2005, cc. 863, 884; 2023, cc. 506, 507; 2024, cc. 225,\n242.","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}}