                                 CODE OF VIRGINIA

DEFERRAL PROGRAMS; TAXES TO BE LIEN ON PROPERTY (§ 58.1-3216)

A. For purposes of this section:
			&#8220;Nonqualified transfer&#8221; means a transfer in ownership of the real
estate by gift or otherwise not for bona fide consideration, other than (i) a
transfer by the qualified owner to a spouse, including without limitation a
transfer creating a tenancy for life or joint lives; (ii) a transfer by the
qualified owner or the qualified owner and his spouse to a revocable inter vivos
trust over which the qualified owner, or the qualified owner and his spouse,
hold the power of revocation; or (iii) a transfer to an irrevocable trust under
which a qualified owner alone or in conjunction with his spouse possesses a life
estate or an estate for joint lives, or enjoys a continuing right of use or
support.
			&#8220;Qualified owner&#8221; means the owner of the real property who
qualifies for a tax deferral by county, city, or town ordinance.

B. In the event of a deferral of real estate taxes granted by ordinance, the
accumulated amount of taxes deferred shall be paid to the county, city, or town
concerned by the vendor, transferor, executor, or administrator: (i) upon the
sale of the real estate; (ii) upon a nonqualified transfer of the real estate;
or (iii) from the estate of the decedent within one year after the death of the
last qualified owner thereof. Such deferred real estate taxes shall be paid
without penalty, except that any ordinance establishing a combined program of
exemptions and deferrals, or deferrals only, may provide for interest not to
exceed eight percent per year on any amount so deferred, and such taxes and
interest, if applicable, shall constitute a lien upon the said real estate as if
it had been assessed without regard to the deferral permitted by this article.
Any such lien shall, to the extent that it exceeds in the aggregate 10 percent
of the price for which such real estate may be sold, be inferior to all other
liens of record.

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; 2018, c. 291.