                                 CODE OF VIRGINIA

PAYMENTS IN LIEU OF PROPERTY TAXES; LICENSE TAX (§ 15.2-5423)

A project owned by an authority shall be exempt from property taxes. However, an
authority, other than an authority created by a governmental unit exempt from
the referendum requirement of § 15.2-5403, owning a project shall, in lieu of
property taxes, pay to any governmental body authorized to levy property taxes,
the amount which would be assessed as taxes on real and personal property of a
project if such project were otherwise subject to valuation and assessment by
the State Corporation Commission, in the same manner as are public utility
companies. Such payments in lieu of taxes shall be due and shall bear interest,
if unpaid, as in the cases of taxes on other property. Authorities, other than
an authority created by a governmental unit exempt from the referendum
requirement of § 15.2-5403, shall pay the annual state license tax imposed by
§ 58.1-2626, or an equal amount in lieu of such tax, to the same extent as if
§ 58.1-2626 were by its terms expressly applicable to authorities. Payments in
lieu of taxes made hereunder shall be treated in the same manner as taxes for
purposes of all procedural and substantive provisions of law. The retail sales
of an authority created by a governmental unit exempt from the referendum
requirement of § 15.2-5403 shall be subject to the taxes imposed under §
58.1-2900. Except as herein expressly provided with respect to projects owned by
an authority, no other property of such authority used or useful in the
generation, transmission, transformation, and distribution of electric power and
energy shall be subject to payment in lieu of taxes.

HISTORY: 1979, c. 416, § 15.1-1626; 1997, c. 587; 2006, cc. 929, 941.