                                 CODE OF VIRGINIA

INCREMENTAL REVENUES APPROPRIATED TO HOUSING REVITALIZATION ZONE (§ 36-170)

Any county, city, or town in which a housing revitalization zone is located
shall, within ninety days of the designation of a housing revitalization zone
within such county, city, or town, adopt an ordinance providing that all or a
specified percentage of the real estate taxes in such zone shall be assessed,
collected, and allocated in the following manner:

1. The local assessing officer shall record in the appropriate books both the
base assessed value and the current assessed value of the real estate in the
zone.

2. Real estate taxes attributable to the lower of the current assessed value or
base assessed value of real estate located in a housing revitalization zone
shall be allocated by the treasurer or director of finance as they would be in
the absence of such ordinance.

3. At least twenty-five percent of the increase in real estate taxes
attributable to the difference between (i) the current assessed value of such
property and (ii) the base assessed value of such property shall be appropriated
by the county, city, or town within such housing revitalization zone to provide
enhanced tax incentives, law-enforcement and other governmental services,
including financing transportation projects, as may be appropriate to secure and
to promote private investment in such zone. For purposes of determining such
increase, additional revenues resulting from an increase in the tax rate on real
estate after the designation of such housing revitalization zone shall not be
included. Such ordinance shall provide that the appropriations mandated by this
section shall be made for such increase in taxes in the county, city, or
town&#8217;s taxable year immediately following the payment of any grants under
this chapter. If the grants authorized by this section are not paid to qualified
business firms or qualified owner occupants for a particular calendar year, such
county, city, or town shall not be required to appropriate such increase in
taxes in its immediately following taxable year.

HISTORY: 2000, cc. 789, 795.