{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3603.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3603.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3603.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3603.html"}],"law_id":73745,"edition_id":1,"section_id":73745,"structure_id":15483,"section_number":"58.1-3603","catch_line":"Exemptions not applicable when building is source of revenue","history":"Code 1950, \u00a7\u00a7 58-14, 58-16; 1950, p. 659; 1984, c. 675; 1996, c. 534.","full_text":"A\n\nWhenever any building or land, or part thereof, exempt from taxation pursuant to this chapter and not belonging to the Commonwealth is a source of revenue or profit, whether by lease or otherwise, all of such buildings and land shall be liable to taxation as other land and buildings in the same county, city or town. When a part but not all of any such building or land, however, is a source of revenue or profit, and the remainder of such building or land is used by any organization exempted from taxation pursuant to this chapter for its purposes, only such portion as is a source of profit or revenue shall be liable for taxation.B\n\nIn assessing any building and the land it occupies pursuant to subsection A, the assessing officer shall only assess for taxation that portion of the property as is a source of profit or revenue and the tax shall be computed on the basis of the ratio of the space as is a source of profit or revenue to the entire property. When any such property is leased for portions of a year the tax shall be computed on the basis of the average use of such property for the preceding year.C\n\nIn determining whether any building or land, or part thereof, is a source of revenue or profit, rent from the lease of the property applied to reduce indebtedness against the property by payment of the principal of an outstanding bond or note held by a political subdivision of the Commonwealth shall not constitute revenue or profit, provided that the property is leased to a lessee who is exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code and is used by such lessee exclusively for charitable purposes.","order_by":null,"text":{"0":{"id":265202,"text":"Whenever any building or land, or part thereof, exempt from taxation pursuant to this chapter and not belonging to the Commonwealth is a source of revenue or profit, whether by lease or otherwise, all of such buildings and land shall be liable to taxation as other land and buildings in the same county, city or town. When a part but not all of any such building or land, however, is a source of revenue or profit, and the remainder of such building or land is used by any organization exempted from taxation pursuant to this chapter for its purposes, only such portion as is a source of profit or revenue shall be liable for taxation.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":265203,"text":"In assessing any building and the land it occupies pursuant to subsection A, the assessing officer shall only assess for taxation that portion of the property as is a source of profit or revenue and the tax shall be computed on the basis of the ratio of the space as is a source of profit or revenue to the entire property. When any such property is leased for portions of a year the tax shall be computed on the basis of the average use of such property for the preceding year.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":265204,"text":"In determining whether any building or land, or part thereof, is a source of revenue or profit, rent from the lease of the property applied to reduce indebtedness against the property by payment of the principal of an outstanding bond or note held by a political subdivision of the Commonwealth shall not constitute revenue or profit, provided that the property is leased to a lessee who is exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code and is used by such lessee exclusively for charitable purposes.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":15483,"edition_id":1,"name":"Exemptions Generally","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13614,"metadata":{},"date_created":"2026-06-26 03:55:25","date_modified":"2026-06-26 03:55:25","permalink":{"id":257967,"object_type":"structure","relational_id":15483,"identifier":"1","token":"58.1\/III\/36\/1","url":"\/58.1\/III\/36\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13614,"edition_id":1,"name":"Tax Exempt Property","identifier":"36","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:45:23","date_modified":"2026-06-26 03:45:23","permalink":{"id":257965,"object_type":"structure","relational_id":13614,"identifier":"36","token":"58.1\/III\/36","url":"\/58.1\/III\/36\/","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":58999,"structure_id":15483,"section_number":"58.1-3600","catch_line":"Definitions","url":"\/58.1-3600\/","token":"58.1\/III\/36\/1\/58.1-3600","metadata":false},{"id":71558,"structure_id":15483,"section_number":"58.1-3601","catch_line":"Property becomes taxable immediately upon sale by tax-exempt owner","url":"\/58.1-3601\/","token":"58.1\/III\/36\/1\/58.1-3601","metadata":false},{"id":83475,"structure_id":15483,"section_number":"58.1-3602","catch_line":"Exemptions not applicable to associations, etc., paying death, etc., benefits","url":"\/58.1-3602\/","token":"58.1\/III\/36\/1\/58.1-3602","metadata":false},{"id":73745,"structure_id":15483,"section_number":"58.1-3603","catch_line":"Exemptions not applicable when building is source of revenue","url":"\/58.1-3603\/","token":"58.1\/III\/36\/1\/58.1-3603","metadata":false},{"id":75977,"structure_id":15483,"section_number":"58.1-3604","catch_line":"Tax exemption information","url":"\/58.1-3604\/","token":"58.1\/III\/36\/1\/58.1-3604","metadata":false},{"id":74112,"structure_id":15483,"section_number":"58.1-3605","catch_line":"Triennial application for exemption; removal by local governing body","url":"\/58.1-3605\/","token":"58.1\/III\/36\/1\/58.1-3605","metadata":false},{"id":73046,"structure_id":15483,"section_number":"58.1-3605.1","catch_line":"Repealed","url":"\/58.1-3605.1\/","token":"58.1\/III\/36\/1\/58.1-3605.1","metadata":false}],"previous_section":{"id":83475,"structure_id":15483,"section_number":"58.1-3602","catch_line":"Exemptions not applicable to associations, etc., paying death, etc., benefits","url":"\/58.1-3602\/","token":"58.1\/III\/36\/1\/58.1-3602","metadata":false},"next_section":{"id":75977,"structure_id":15483,"section_number":"58.1-3604","catch_line":"Tax exemption information","url":"\/58.1-3604\/","token":"58.1\/III\/36\/1\/58.1-3604","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3603\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 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 1984, chapter 675; in 1996, chapter 534<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":257981,"object_type":"law","relational_id":73745,"identifier":"58.1-3603","token":"58.1\/III\/36\/1\/58.1-3603","url":"\/58.1-3603\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3603\/","token":"58.1\/III\/36\/1\/58.1-3603","dublin_core":{"Title":"Exemptions not applicable when building is source of revenue","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3603","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Whenever any building or land, or part thereof, exempt from taxation pursuant to this chapter and not belonging to the Commonwealth is a source of revenue or profit, whether by lease or otherwise, all of such buildings and land shall be liable to taxation as other land and buildings in the same county, city or town. When a part but not all of any such building or land, however, is a source of revenue or profit, and the remainder of such building or land is used by any organization exempted from taxation pursuant to this chapter for its purposes, only such portion as is a source of profit or revenue shall be liable for taxation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In assessing any building and the land it occupies pursuant to subsection A, the assessing officer shall only assess for taxation that portion of the property as is a source of profit or revenue and the tax shall be computed on the basis of the ratio of the space as is a source of profit or revenue to the entire property. When any such property is leased for portions of a year the tax shall be computed on the basis of the average use of such property for the preceding year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In determining whether any building or land, or part thereof, is a source of revenue or profit, rent from the lease of the property applied to reduce indebtedness against the property by payment of the principal of an outstanding bond<\/span> or note held by a political subdivision of the Commonwealth shall not constitute revenue or profit, provided that the property is leased to a lessee who is exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code and is used by such lessee exclusively for charitable purposes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEXEMPTIONS NOT APPLICABLE WHEN BUILDING IS SOURCE OF REVENUE (\u00a7 58.1-3603)\n\nA. Whenever any building or land, or part thereof, exempt from taxation pursuant\nto this chapter and not belonging to the Commonwealth is a source of revenue or\nprofit, whether by lease or otherwise, all of such buildings and land shall be\nliable to taxation as other land and buildings in the same county, city or town.\nWhen a part but not all of any such building or land, however, is a source of\nrevenue or profit, and the remainder of such building or land is used by any\norganization exempted from taxation pursuant to this chapter for its purposes,\nonly such portion as is a source of profit or revenue shall be liable for\ntaxation.\n\nB. In assessing any building and the land it occupies pursuant to subsection A,\nthe assessing officer shall only assess for taxation that portion of the\nproperty as is a source of profit or revenue and the tax shall be computed on\nthe basis of the ratio of the space as is a source of profit or revenue to the\nentire property. When any such property is leased for portions of a year the tax\nshall be computed on the basis of the average use of such property for the\npreceding year.\n\nC. In determining whether any building or land, or part thereof, is a source of\nrevenue or profit, rent from the lease of the property applied to reduce\nindebtedness against the property by payment of the principal of an outstanding\nbond or note held by a political subdivision of the Commonwealth shall not\nconstitute revenue or profit, provided that the property is leased to a lessee\nwho is exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue\nCode and is used by such lessee exclusively for charitable purposes.\n\nHISTORY: Code 1950, \u00a7\u00a7 58-14, 58-16; 1950, p. 659; 1984, c. 675; 1996, c. 534.","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}}