{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/60.2-502.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/60.2-502.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/60.2-502.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/60.2-502.html"}],"law_id":64084,"edition_id":1,"section_id":64084,"structure_id":15800,"section_number":"60.2-502","catch_line":"Bonding of nonprofit organizations","history":"1974, c. 466, \u00a7 60.1-89; 1981, cc. 248, 252; 1986, c. 480.","full_text":"A\n\nIn the discretion of the Commission, any nonprofit organization that elects to become liable for payments in lieu of taxes shall be required within thirty days after the effective date of its election (i) to execute and file with the Commission a surety bond approved by the Commission or (ii) to deposit with the Commission money or securities. The amount of such bond or deposit shall be determined in accordance with the provisions of this section.B\n\nThe amount of the bond or deposit required by this section shall be a percentage, determined by the Commission, of the organization’s taxable wages paid for employment as defined in subdivision 4 of subsection A of § 60.2-213 for the four calendar quarters immediately preceding the effective date of the election, the renewal date in the case of a bond, or the biennial anniversary of the effective date of election in the case of a deposit of money or securities, whichever date is most recent and applicable. If the nonprofit organization did not pay wages in each of such four calendar quarters, the amount of the bond or deposit shall be as determined by the Commission.C\n\nAny bond deposited under this section shall be in force for a period of not less than two taxable years and shall be renewed with the approval of the Commission, at such time as the Commission may prescribe, but not less frequently than at two-year intervals as long as the organization continues to be liable for payments in lieu of taxes. The Commission shall require adjustments to be made in a previously filed bond as it deems appropriate. If the bond is to be increased, the adjusted bond shall be filed by the organization within thirty days of the date notice of the required adjustment was mailed or otherwise delivered to it. Failure by any organization covered by such bond to pay the full amount of payments in lieu of taxes when due, together with any applicable interest and penalties provided for in subdivision 6 of subsection C of § 60.2-501, shall render the surety liable on such bond to the extent of the bond, as though the surety was such organization.D\n\nAny deposit of money or securities made in accordance with this section shall be retained by the Commission in an escrow account until liability under the election is terminated, at which time it shall be returned to the organization, less any deductions as hereinafter provided. The Commission may deduct from the money deposited under this section by a nonprofit organization or sell the securities it has so deposited to the extent necessary to satisfy any due and unpaid payments in lieu of taxes and any applicable interest and penalties provided for in subdivision 6 of subsection C of § 60.2-501. The Commission shall require the organization within thirty days following any deduction from a money deposit or sale of deposited securities under the provisions of this subsection to deposit sufficient additional money or securities to make whole the organization’s deposit at the prior level. Any cash remaining from the sale of such securities shall be a part of the organization’s escrow account. The Commission may review the adequacy of the deposit made by any organization. If, as a result of such review, it determines that an adjustment is necessary, the organization shall be required to make additional deposit within thirty days of written notice of the determination or the Commission shall return to it such portion of the deposit as it no longer considers necessary, whichever action is appropriate. Disposition of income from securities held in escrow shall be governed by the applicable provisions of the state law.E\n\nIf any nonprofit organization fails to file a bond or make a deposit, or to file a bond in an increased amount or to increase or make whole the amount of a previously made deposit, as provided under this subsection, the Commission may terminate such organization’s election to make payments in lieu of taxes and such termination shall continue for not less than the four consecutive calendar quarter period beginning with the quarter in which such termination becomes effective; however, the Commission may extend for good cause the applicable filing, deposit or adjustment period by not more than thirty days.","order_by":null,"text":{"0":{"id":233341,"text":"In the discretion of the Commission, any nonprofit organization that elects to become liable for payments in lieu of taxes shall be required within thirty days after the effective date of its election (i) to execute and file with the Commission a surety bond approved by the Commission or (ii) to deposit with the Commission money or securities. The amount of such bond or deposit shall be determined in accordance with the provisions of this section.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":233342,"text":"The amount of the bond or deposit required by this section shall be a percentage, determined by the Commission, of the organization’s taxable wages paid for employment as defined in subdivision 4 of subsection A of § 60.2-213 for the four calendar quarters immediately preceding the effective date of the election, the renewal date in the case of a bond, or the biennial anniversary of the effective date of election in the case of a deposit of money or securities, whichever date is most recent and applicable. If the nonprofit organization did not pay wages in each of such four calendar quarters, the amount of the bond or deposit shall be as determined by the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":233343,"text":"Any bond deposited under this section shall be in force for a period of not less than two taxable years and shall be renewed with the approval of the Commission, at such time as the Commission may prescribe, but not less frequently than at two-year intervals as long as the organization continues to be liable for payments in lieu of taxes. The Commission shall require adjustments to be made in a previously filed bond as it deems appropriate. If the bond is to be increased, the adjusted bond shall be filed by the organization within thirty days of the date notice of the required adjustment was mailed or otherwise delivered to it. Failure by any organization covered by such bond to pay the full amount of payments in lieu of taxes when due, together with any applicable interest and penalties provided for in subdivision 6 of subsection C of § 60.2-501, shall render the surety liable on such bond to the extent of the bond, as though the surety was such organization.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":233344,"text":"Any deposit of money or securities made in accordance with this section shall be retained by the Commission in an escrow account until liability under the election is terminated, at which time it shall be returned to the organization, less any deductions as hereinafter provided. The Commission may deduct from the money deposited under this section by a nonprofit organization or sell the securities it has so deposited to the extent necessary to satisfy any due and unpaid payments in lieu of taxes and any applicable interest and penalties provided for in subdivision 6 of subsection C of § 60.2-501. The Commission shall require the organization within thirty days following any deduction from a money deposit or sale of deposited securities under the provisions of this subsection to deposit sufficient additional money or securities to make whole the organization’s deposit at the prior level. Any cash remaining from the sale of such securities shall be a part of the organization’s escrow account. The Commission may review the adequacy of the deposit made by any organization. If, as a result of such review, it determines that an adjustment is necessary, the organization shall be required to make additional deposit within thirty days of written notice of the determination or the Commission shall return to it such portion of the deposit as it no longer considers necessary, whichever action is appropriate. Disposition of income from securities held in escrow shall be governed by the applicable provisions of the state law.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":233345,"text":"If any nonprofit organization fails to file a bond or make a deposit, or to file a bond in an increased amount or to increase or make whole the amount of a previously made deposit, as provided under this subsection, the Commission may terminate such organization’s election to make payments in lieu of taxes and such termination shall continue for not less than the four consecutive calendar quarter period beginning with the quarter in which such termination becomes effective; however, the Commission may extend for good cause the applicable filing, deposit or adjustment period by not more than thirty days.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":15800,"edition_id":1,"name":"Employer Taxation","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13052,"metadata":{},"date_created":"2026-06-26 03:59:42","date_modified":"2026-06-26 03:59:42","permalink":{"id":267635,"object_type":"structure","relational_id":15800,"identifier":"1","token":"60.2\/5\/1","url":"\/60.2\/5\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13052,"edition_id":1,"name":"Taxation","identifier":"5","label":"chapter","depth":2,"order_by":1,"parent_id":12883,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":267633,"object_type":"structure","relational_id":13052,"identifier":"5","token":"60.2\/5","url":"\/60.2\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12883,"edition_id":1,"name":"Unemployment Compensation","identifier":"60.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":267273,"object_type":"structure","relational_id":12883,"identifier":"60.2","token":"60.2","url":"\/60.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79987,"structure_id":15800,"section_number":"60.2-500","catch_line":"Determination with respect to whether employing unit is employer; whether services constitute employment; or whether business transfer is illegal","url":"\/60.2-500\/","token":"60.2\/5\/1\/60.2-500","metadata":false},{"id":74537,"structure_id":15800,"section_number":"60.2-501","catch_line":"Financing of benefits to employees of nonprofit organizations","url":"\/60.2-501\/","token":"60.2\/5\/1\/60.2-501","metadata":false},{"id":64084,"structure_id":15800,"section_number":"60.2-502","catch_line":"Bonding of nonprofit organizations","url":"\/60.2-502\/","token":"60.2\/5\/1\/60.2-502","metadata":false},{"id":82934,"structure_id":15800,"section_number":"60.2-503","catch_line":"Authority to terminate elections","url":"\/60.2-503\/","token":"60.2\/5\/1\/60.2-503","metadata":false},{"id":61679,"structure_id":15800,"section_number":"60.2-504","catch_line":"Allocation of benefit costs","url":"\/60.2-504\/","token":"60.2\/5\/1\/60.2-504","metadata":false},{"id":65862,"structure_id":15800,"section_number":"60.2-505","catch_line":"Group accounts","url":"\/60.2-505\/","token":"60.2\/5\/1\/60.2-505","metadata":false},{"id":66996,"structure_id":15800,"section_number":"60.2-506","catch_line":"Financing of benefits to state employees","url":"\/60.2-506\/","token":"60.2\/5\/1\/60.2-506","metadata":false},{"id":63537,"structure_id":15800,"section_number":"60.2-507","catch_line":"Financing of benefits to employees of governmental entities","url":"\/60.2-507\/","token":"60.2\/5\/1\/60.2-507","metadata":false},{"id":75938,"structure_id":15800,"section_number":"60.2-507.1","catch_line":"Financing of benefits to employees of Indian tribes","url":"\/60.2-507.1\/","token":"60.2\/5\/1\/60.2-507.1","metadata":false},{"id":70581,"structure_id":15800,"section_number":"60.2-508","catch_line":"Period of coverage generally; account required","url":"\/60.2-508\/","token":"60.2\/5\/1\/60.2-508","metadata":false},{"id":72820,"structure_id":15800,"section_number":"60.2-509","catch_line":"Termination of coverage","url":"\/60.2-509\/","token":"60.2\/5\/1\/60.2-509","metadata":false},{"id":60892,"structure_id":15800,"section_number":"60.2-510","catch_line":"Election as to coverage","url":"\/60.2-510\/","token":"60.2\/5\/1\/60.2-510","metadata":false}],"previous_section":{"id":74537,"structure_id":15800,"section_number":"60.2-501","catch_line":"Financing of benefits to employees of nonprofit organizations","url":"\/60.2-501\/","token":"60.2\/5\/1\/60.2-501","metadata":false},"next_section":{"id":82934,"structure_id":15800,"section_number":"60.2-503","catch_line":"Authority to terminate elections","url":"\/60.2-503\/","token":"60.2\/5\/1\/60.2-503","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/60.2-502\/","history_text":"

This law was first created in 1974. The record of its establishment is cataloged in chapter 466 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 1974 \u201cActs\u201d aren\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 1981, chapters 248 and 252; in 1986, chapter 480.<\/p>","references":false,"refers_to":[{"id":75325,"section_number":"60.2-213","catch_line":"Employment with hospital, higher education, state, subdivision, or certain religious or charitable organizations","order_by":null,"url":"\/60.2-213\/"},{"id":74537,"section_number":"60.2-501","catch_line":"Financing of benefits to employees of nonprofit organizations","order_by":null,"url":"\/60.2-501\/"}],"permalink":{"id":267645,"object_type":"law","relational_id":64084,"identifier":"60.2-502","token":"60.2\/5\/1\/60.2-502","url":"\/60.2-502\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/60.2-502\/","token":"60.2\/5\/1\/60.2-502","dublin_core":{"Title":"Bonding of nonprofit organizations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 60.2-502","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In the discretion of the Commission, any nonprofit organization that elects to become liable for payments in lieu of taxes shall be required within thirty days after the effective date of its election (i) to execute and file with the Commission a surety<\/span> bond<\/span> approved by the Commission or (ii) to deposit with the Commission money or securities. The amount of such bond<\/span> or deposit shall be determined in accordance with the provisions of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The amount of the bond<\/span> or deposit required by this section shall be a percentage, determined by the Commission, of the organization’s taxable wages paid for employment as defined in subdivision 4 of subsection A of § 60.2-213<\/a> for the four calendar quarters immediately preceding the effective date of the election, the renewal date in the case of a bond<\/span>, or the biennial anniversary of the effective date of election in the case of a deposit of money or securities, whichever date is most recent and applicable. If the nonprofit organization did not pay wages in each of such four calendar quarters, the amount of the bond<\/span> or deposit shall be as determined by the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any bond<\/span> deposited under this section shall be in force for a period of not less than two taxable years and shall be renewed with the approval of the Commission, at such time as the Commission may prescribe, but not less frequently than at two-year intervals as long as the organization continues to be liable for payments in lieu of taxes. The Commission shall require adjustments to be made in a previously filed bond<\/span> as it deems appropriate. If the bond<\/span> is to be increased, the adjusted bond<\/span> shall be filed by the organization within thirty days of the date notice of the required adjustment was mailed or otherwise delivered to it. Failure by any organization covered by such bond<\/span> to pay the full amount of payments in lieu of taxes when due, together with any applicable interest and penalties provided for in subdivision 6 of subsection C of § 60.2-501<\/a>, shall render the surety<\/span> liable on such bond<\/span> to the extent of the bond<\/span>, as though the surety<\/span> was such organization. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any deposit of money or securities made in accordance with this section shall be retained by the Commission in an escrow account until liability under the election is terminated, at which time it shall be returned to the organization, less any deductions as hereinafter provided. The Commission may deduct from the money deposited under this section by a nonprofit organization or sell the securities it has so deposited to the extent necessary to satisfy any due and unpaid payments in lieu of taxes and any applicable interest and penalties provided for in subdivision 6 of subsection C of § 60.2-501<\/a>. The Commission shall require the organization within thirty days following any deduction from a money deposit or sale of deposited securities under the provisions of this subsection to deposit sufficient additional money or securities to make whole the organization’s deposit at the prior level. Any cash remaining from the sale of such securities shall be a part of the organization’s escrow account. The Commission may review the adequacy of the deposit made by any organization. If, as a result of such review, it determines that an adjustment is necessary, the organization shall be required to make additional deposit within thirty days of written notice of the determination or the Commission shall return to it such portion of the deposit as it no longer considers necessary, whichever action is appropriate. Disposition<\/span> of income from securities held in escrow shall be governed by the applicable provisions of the state law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If any nonprofit organization fails to file a bond<\/span> or make a deposit, or to file a bond<\/span> in an increased amount or to increase or make whole the amount of a previously made deposit, as provided under this subsection, the Commission may terminate such organization’s election to make payments in lieu of taxes and such termination shall continue for not less than the four consecutive calendar quarter period beginning with the quarter in which such termination becomes effective; however, the Commission may extend for good cause the applicable filing, deposit or adjustment period by not more than thirty days. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBONDING OF NONPROFIT ORGANIZATIONS (\u00a7 60.2-502)\n\nA. In the discretion of the Commission, any nonprofit organization that elects\nto become liable for payments in lieu of taxes shall be required within thirty\ndays after the effective date of its election (i) to execute and file with the\nCommission a surety bond approved by the Commission or (ii) to deposit with the\nCommission money or securities. The amount of such bond or deposit shall be\ndetermined in accordance with the provisions of this section.\n\nB. The amount of the bond or deposit required by this section shall be a\npercentage, determined by the Commission, of the organization’s taxable\nwages paid for employment as defined in subdivision 4 of subsection A of §\n60.2-213 for the four calendar quarters immediately preceding the effective date\nof the election, the renewal date in the case of a bond, or the biennial\nanniversary of the effective date of election in the case of a deposit of money\nor securities, whichever date is most recent and applicable. If the nonprofit\norganization did not pay wages in each of such four calendar quarters, the\namount of the bond or deposit shall be as determined by the Commission.\n\nC. Any bond deposited under this section shall be in force for a period of not\nless than two taxable years and shall be renewed with the approval of the\nCommission, at such time as the Commission may prescribe, but not less\nfrequently than at two-year intervals as long as the organization continues to\nbe liable for payments in lieu of taxes. The Commission shall require\nadjustments to be made in a previously filed bond as it deems appropriate. If\nthe bond is to be increased, the adjusted bond shall be filed by the\norganization within thirty days of the date notice of the required adjustment\nwas mailed or otherwise delivered to it. Failure by any organization covered by\nsuch bond to pay the full amount of payments in lieu of taxes when due, together\nwith any applicable interest and penalties provided for in subdivision 6 of\nsubsection C of § 60.2-501, shall render the surety liable on such bond to\nthe extent of the bond, as though the surety was such organization.\n\nD. Any deposit of money or securities made in accordance with this section shall\nbe retained by the Commission in an escrow account until liability under the\nelection is terminated, at which time it shall be returned to the organization,\nless any deductions as hereinafter provided. The Commission may deduct from the\nmoney deposited under this section by a nonprofit organization or sell the\nsecurities it has so deposited to the extent necessary to satisfy any due and\nunpaid payments in lieu of taxes and any applicable interest and penalties\nprovided for in subdivision 6 of subsection C of § 60.2-501. The Commission\nshall require the organization within thirty days following any deduction from a\nmoney deposit or sale of deposited securities under the provisions of this\nsubsection to deposit sufficient additional money or securities to make whole\nthe organization’s deposit at the prior level. Any cash remaining from the\nsale of such securities shall be a part of the organization’s escrow\naccount. The Commission may review the adequacy of the deposit made by any\norganization. If, as a result of such review, it determines that an adjustment\nis necessary, the organization shall be required to make additional deposit\nwithin thirty days of written notice of the determination or the Commission\nshall return to it such portion of the deposit as it no longer considers\nnecessary, whichever action is appropriate. Disposition of income from\nsecurities held in escrow shall be governed by the applicable provisions of the\nstate law.\n\nE. If any nonprofit organization fails to file a bond or make a deposit, or to\nfile a bond in an increased amount or to increase or make whole the amount of a\npreviously made deposit, as provided under this subsection, the Commission may\nterminate such organization’s election to make payments in lieu of taxes\nand such termination shall continue for not less than the four consecutive\ncalendar quarter period beginning with the quarter in which such termination\nbecomes effective; however, the Commission may extend for good cause the\napplicable filing, deposit or adjustment period by not more than thirty days.\n\nHISTORY: 1974, c. 466, \u00a7 60.1-89; 1981, cc. 248, 252; 1986, c. 480.","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}}