                                 CODE OF VIRGINIA

PARTIAL EXEMPTION FOR CERTAIN REHABILITATED, RENOVATED OR REPLACEMENT HOTEL OR
MOTEL STRUCTURES (§ 58.1-3220.1)

A. The governing body of any county, city or town may, by ordinance, provide
partial exemption from taxation of real estate on which a hotel or motel no less
than thirty-five years of age has undergone substantial rehabilitation,
renovation or replacement for residential use, subject to such conditions as the
ordinance may prescribe. The ordinance may, in addition to any other
restrictions hereinafter provided, restrict such exemptions to real property
located within described zones or districts whose boundaries shall be determined
by the governing body. The governing body of a county, city or town may
establish criteria for determining whether real estate qualifies for the
exemption authorized by this provision and may require such structures to be
older than thirty-five years of age, or place such other restrictions and
conditions on such property as may be prescribed by ordinance.

B. The &#8220;partial exemption&#8221; provided by the local governing body may
not exceed either an amount equal to ninety percent of the total assessed value
of the rehabilitated, renovated or replaced structure or an amount equal to the
increase in assessed value resulting from the rehabilitation, renovation or
replacement of the structure as determined by the commissioner of the revenue or
other local assessing officer, as established by ordinance. The partial
exemption may commence upon completion of the rehabilitation, renovation or
replacement or on January 1 of the year following completion of the
rehabilitation, renovation or replacement and shall run with the real estate for
a period of no longer than twenty-five 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. Nothing in this section shall be construed 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.

D. The governing body of any county, city or town may assess a fee for
processing an application requesting the exemption provided by this section. No
property shall be eligible for such partial exemption unless the appropriate
building permits have been acquired and the commissioner of the revenue or
assessing officer has verified that the rehabilitation, renovation or
replacement indicated on the application has been completed.

E. Where rehabilitation 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: 1993, c. 157; 1994, cc. 424, 435.