                                 CODE OF VIRGINIA

PROPERTY CLASSIFICATION OF COOPERATIVE INTERESTS; TAXATION (§ 55.1-2103)

A. A cooperative interest is real estate for all purposes. Unless waived by a
proprietary lessee, a cooperative interest is subject to the provisions of Title
34 (&#xA7; 34-1 et seq.), regarding the homestead exemption.

B. Any portion of the common elements for which the declarant has reserved any
development right shall be separately taxed and assessed against the declarant,
and the declarant alone is liable for the payment of those taxes.

C. When the highest and best use of any parcel improved by a multi-unit
cooperative apartment complex is achieved by sale of the cooperative apartment
units as individual units, the fair market value of the parcel shall be
determined by aggregating the fair market value of all taxable real estate that
is part of the parcel, including each cooperative apartment unit and common
elements. The fair market value of each such cooperative apartment unit shall be
established by determining its fair market value for sale as an individual unit,
determined in the same manner, mutatis mutandis, as the fair market value of
condominium units. Tax bills shall be issued for each individual cooperative
apartment unit.
			No assessment of any parcel improved by a multi-unit cooperative apartment
complex, whether the assessment was made before or after the adoption of this
subsection, shall be held to be invalid because of the use of the method
described in this subsection to determine the assessment.

D. Any duly authorized real estate assessor, board of assessors, or department
of real estate assessments may require that all declarants, associations, master
associations, and proprietary lessees&#8217; associations in the county or city
subject to local taxation furnish to such assessor, board, or department on or
before a time specified a statement listing all transfers of the cooperative
apartment units over a specified period of time and a statement listing all
owners and proprietary lessees of the cooperative apartment units as of a
specified date. Each such statement shall be certified as to its accuracy by the
declarant, association, master association, or proprietary lessees&#8217;
association for which the statement is furnished or by a duly authorized agent
of such declarant or association. Any statement required by this subsection
shall be kept confidential in accordance with the provisions of &#xA7; 58.1-3.

E. Subsections C and D apply to all cooperatives created in the Commonwealth,
whether created before, on, or after July 1, 1982. However, subsections C and D
do not apply to any multi-unit cooperative apartment complex the cooperative
apartment units of which have been continually in use as such since December 31,
1967.

F. Any residential cooperative association the members of which are owners of
cooperative interests in a cooperative under this chapter shall not be deemed to
be a business for any state and local purposes, including liability for payment
of sales, meals, hotel, motel, or gross receipts taxes and business licenses, to
the extent that such residential cooperative association collects payments from
residents of such cooperative.

G. Any tangible personal property owned by a residential cooperative association
that would be considered household goods and personal effects if owned and used
by an individual or by a family or household incident to maintaining an abode
shall be considered household goods and personal effects owned and used by an
individual or by a family or household incident to maintaining an abode for the
purposes of &#xA7; 58.1-3504 and any local ordinance authorized pursuant to
&#xA7; 58.1-3504.

HISTORY: 1982, c. 277, § 55-428; 1988, c. 412; 2002, c. 34; 2003, c. 351; 2019,
c. 712.