                                 CODE OF VIRGINIA

PARTIAL EXEMPTION FOR STRUCTURES IN REDEVELOPMENT OR CONSERVATION AREAS OR
REHABILITATION DISTRICTS (§ 58.1-3219.4)

For purposes of this section, unless the context requires otherwise:
		&#8220;Redevelopment or conservation area or rehabilitation district&#8221;
means a redevelopment or conservation area or a rehabilitation district
established in accordance with law.

A. The governing body of any county, city, or town may, by ordinance, provide
for the partial exemption from taxation of (i) new structures located in a
redevelopment or conservation area or rehabilitation district or (ii) other
improvements to real estate located in a redevelopment or conservation area or
rehabilitation district. The governing body of a county, city, or town may (a)
establish criteria for determining whether real estate qualifies for the partial
exemption authorized by this section, (b) establish requirements for the square
footage of new structures that would qualify for the partial exemption, and (c)
place such other restrictions and conditions on such new structures or
improvements as may be prescribed by ordinance.

B. The partial exemption provided by the local governing body shall be provided
in the local ordinance and shall be either (i) an amount equal to the increase
in assessed value or a percentage of such increase resulting from the
construction of the new structure or other improvement to the real estate as
determined by the commissioner of the revenue or other local assessing officer,
or (ii) an amount up to 50 percent of the cost of such construction or
improvement, as determined by ordinance. The exemption may commence upon
completion of the new construction or improvement or on January 1 of the year
following completion of the new construction or improvement and shall run with
the real estate for a period of no longer than 30 years. The governing body of a
county, city, or town may place a shorter time limitation on the length of such
exemption, or reduce the amount of the exemption in annual steps over the entire
period or a portion thereof, in such manner as the ordinance may prescribe.

C. The local governing body or its designee shall provide written notification
to the property owner of the amount of the assessment of the property that will
be exempt from real property taxation and the period of such exemption. Such
exempt amount shall be a covenant that runs with the land for the period of the
exemption and shall not be reduced by the local governing body or its designee
during the period of the exemption, unless the local governing body or its
designee by written notice has advised the property owner at the initial time of
approval of the exemption that the exempt amount may be decreased during the
period of such exemption. In no event, however, shall such partial exemption
result in totally exempting the value of the structure.

D. Nothing in this section shall be construed so as to permit the commissioner
of the revenue to list upon the land book any reduced value due to the exemption
provided in subsection B.

E. The governing body of any county, city, or town may assess a fee not to
exceed $125 for residential properties, or $250 for commercial, industrial,
and/or apartment properties of six units or more, for processing an application
requesting the exemption provided by this section. No property shall be eligible
for such exemption unless the appropriate building permits have been acquired
and the commissioner of the revenue or assessing officer has verified that the
new structures or other improvements have been completed.

F. Where the construction of a new structure is achieved through demolition and
replacement of an existing structure, the exemption provided in subsection A
shall not apply when any structure demolished is a registered Virginia landmark
or is determined by the Department of Historic Resources to contribute to the
significance of a registered historic district.

HISTORY: 2006, c. 572; 2011, cc. 423, 460; 2020, cc. 66, 246.