                                 CODE OF VIRGINIA

LOCAL RESTRICTIONS AND EXEMPTIONS (§ 58.1-3212)

A. Pursuant to Article X, &#xA7; 6 (b) of the Constitution of Virginia, the
General Assembly hereby authorizes the governing body of a county, city or town
to establish by ordinance net financial worth or annual income limitations as a
condition of eligibility for any exemption or deferral of tax allowed pursuant
to this article. If the governing body establishes an annual income limitation,
the computation of annual income shall be based on adding together the income
received during the preceding calendar year, without regard to whether a tax
return is actually filed, by (i) owners of the dwelling who use it as their
principal residence, (ii) owners&#8217; relatives who live in the dwelling,
except for those relatives living in the dwelling and providing bona fide
caregiving services to the owner whether such relatives are compensated or not,
and (iii) at the option of each locality, nonrelatives of the owner who live in
the dwelling except for bona fide tenants or bona fide caregivers of the owner,
whether compensated or not. A locality may provide in its ordinance that, for
the purpose of the computation of annual income, if an individual described in
clause (ii) and (iii) is permanently and totally disabled, any disability income
received by such person shall not be included. If the governing body establishes
a net financial worth limitation, net financial worth shall be based on adding
together the net financial worth, including the present value of equitable
interests, as of December 31 of the immediately preceding calendar year, of the
owners, and of the spouse of any owner, of the dwelling.
			Nothing in this section shall be construed or interpreted as to preclude or
prohibit the governing body of a county, city or town from excluding certain
sources of income, or a portion of the same, for purposes of its annual income
limitation or excluding certain assets, or a portion of the same, for purposes
of its net financial worth limitation.
			Any county, city, or town that pursuant to this article provides for the
exemption from, deferral of, or a combination program of exemptions from and
deferrals of real property taxes may exempt or defer the real property taxes of
the qualifying dwelling and the land, not exceeding ten acres, upon which it is
situated.
			No local ordinance shall require that a citizen reside in the jurisdiction
for a designated period of time as a condition for qualifying for any real
estate tax exemption or deferral program established pursuant to &#xA7;
58.1-3210.

B. A locality may, by ordinance, require that in order to qualify for an
exemption or deferral under this section, a qualifying individual shall be
required to either (i) pay all delinquent taxes, penalties, and interest
assessed by the locality and incurred prior to becoming eligible for an
exemption or deferral; (ii) enter into an installment agreement with the
locality for the payment of all such delinquent amounts in installments over a
period that is reasonable under the circumstances, but that in no event shall
exceed 72 months; (iii) submit and obtain the treasurer&#8217;s agreement to an
offer in compromise pursuant to &#xA7; 58.1-3994 with respect to all amounts of
delinquent taxes, penalties, and interest; or (iv) a combination thereof.
Compliance with the installment or accepted offer in compromise shall be a
requirement for remaining eligible for an exemption or deferral.

HISTORY: Code 1950, § 58-760.1; 1971, Ex. Sess., c. 169; 1972, cc. 315, 616;
1973, c. 496; 1974, c. 427; 1976, c. 543; 1977, cc. 48, 453, 456; 1978, cc. 774,
776, 777, 780, 788, 790; 1979, cc. 543, 544, 545, 563; 1980, cc. 656, 666, 673;
1981, c. 434; 1982, cc. 123, 457; 1984, cc. 267, 675; 1989, c. 568; 2011, cc.
438, 496; 2012, c. 299; 2014, c. 767; 2019, c. 16; 2025, cc. 522, 536.