                                 CODE OF VIRGINIA

CLASSIFICATION OF CERTAIN COMMERCIAL AND INDUSTRIAL REAL PROPERTY AND TAXATION
OF SUCH PROPERTY BY CERTAIN LOCALITIES (§ 58.1-3221.3)

A. Beginning January 1, 2008, and solely for the purposes of imposing the tax
authorized pursuant to this section, in the counties and cities that are wholly
embraced by the Northern Virginia Transportation Authority and the Hampton Roads
metropolitan planning area as of January 1, 2008, pursuant to &#xA7; 134 of
Title 23 of the United States Code, all real property used for or zoned to
permit commercial or industrial uses is hereby declared to be a separate class
of real property for local taxation. Such classification of real property shall
exclude all residential uses and all multifamily residential uses, including but
not limited to single family residential units, cooperatives, condominiums,
townhouses, apartments, or homes in a subdivision when leased on a unit by unit
basis even though these units may be part of a larger building or parcel of real
estate containing more than four residential units.

B. In addition to all other taxes and fees permitted by law, (i) the governing
body of any locality embraced by the Northern Virginia Transportation Authority
may, by ordinance, annually impose on all real property in the locality
specially classified in subsection A: an amount of real property tax, in
addition to such amount otherwise authorized by law, at a rate not to exceed
$0.125 per $100 of assessed value as the governing body may, by ordinance,
impose upon the annual assessed value of all real property used for or zoned to
permit commercial or industrial uses; and (ii) the governing body of any
locality wholly embraced by the Hampton Roads metropolitan planning area as of
January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may,
by ordinance, annually impose on all real property in the locality specially
classified in subsection A: an amount of real property tax, in addition to such
amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of
assessed value as the governing body may, by ordinance, impose upon the annual
assessed value of all real property used for or zoned to permit commercial or
industrial uses. The authority granted in this subsection shall be subject to
the following conditions:

   1. Upon appropriation, all revenues generated from the additional real
   property tax imposed shall be used to benefit the locality imposing the tax
   solely for (i) new road construction and associated planning, design, and
   right-of-way acquisition, including new additions to, expansions, or
   extensions of existing roads that add new capacity, service, or access, (ii)
   new public transit construction and associated planning, design, and
   right-of-way acquisition, including new additions to, expansions, or
   extensions of existing public transit projects that add new capacity, service,
   or access, (iii) other capital costs related to new transportation projects
   that add new capacity, service, or access and the operating costs directly
   related to the foregoing, (iv) the issuance costs and debt service on bonds
   that may be issued to support the capital costs permitted in subdivisions (i),
   (ii), or (iii), or (v) for a locality subject to &#xA7; 33.2-3404, any other
   transportation purposes, provided that the amount used does not exceed the
   amount such locality is required to transfer pursuant to &#xA7; 33.2-3404; and

   2. The additional real property tax imposed shall be levied, administered,
   enforced, and collected in the same manner as set forth in Subtitle III of
   Title 58.1 for the levy, administration, enforcement, and collection of local
   taxes. In addition, the local assessor shall separately assess and set forth
   upon the locality&#8217;s land book the fair market value of that portion of
   property that is defined as a separate class of real property for local
   taxation in accordance with the provisions of this section.

C. Beginning January 1, 2008, in lieu of the authority set forth in subsections
A and B above and solely for the purposes of imposing the tax authorized
pursuant to this section, in the counties and cities wholly embraced by the
Northern Virginia Transportation Authority and the Hampton Roads metropolitan
planning area as of January 1, 2008, pursuant to &#xA7; 134 of Title 23 of the
United States Code, all real property used for or zoned to permit commercial or
industrial uses is hereby declared to be a separate class of real property for
local taxation. Such classification of real property shall exclude all
residential uses and all multifamily residential uses, including but not limited
to single family residential units, cooperatives, condominiums, townhouses,
apartments, or homes in a subdivision when leased on a unit by unit basis even
though these units may be part of a larger building or parcel of real estate
containing more than four residential units.

D. In addition to all other taxes and fees permitted by law, (i) the governing
body of any locality embraced by the Northern Virginia Transportation Authority
may, by ordinance, create within its boundaries, one or more special regional
transportation tax districts and, thereafter, may, by ordinance, impose upon the
real property located in special regional transportation tax districts specially
classified in subsection C within such special regional transportation tax
districts: an amount of real property tax, in addition to such amounts otherwise
authorized by law, at a rate not to exceed $0.125 per $100 of assessed value as
the governing body may, by ordinance, impose upon the annual assessed value of
all real property used for or zoned to permit commercial or industrial uses;
and, (ii) the governing body of any locality wholly embraced by the Hampton
Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of
Title 23 of the United States Code may, by ordinance, create within its
boundaries, one or more special regional transportation tax districts and,
thereafter, may, by ordinance, impose upon the real property specially
classified in subsection C within such special regional transportation tax
districts: an amount of real property tax, in addition to such amounts otherwise
authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as
the governing body may, by ordinance, impose upon the annual assessed value of
all real property used for or zoned to permit commercial or industrial uses. The
authority granted in this subsection shall be subject to the following
conditions:

   1. Notwithstanding any other provisions of law to the contrary, upon
   appropriation, all revenues generated from the additional real property taxes
   imposed in accordance with subsection C and this subsection shall be used for
   transportation purposes that benefit the special regional transportation tax
   district to which such revenue is attributable and solely for (i) new road
   construction and associated planning, design, and right-of-way acquisition,
   including new additions to, expansions, or extensions of existing roads that
   add new capacity, service, or access, (ii) new public transit construction and
   associated planning, design, and right-of-way acquisition, including new
   additions to, expansions, or extensions of existing public transit projects
   that add new capacity, service, or access, (iii) other capital costs related
   to new transportation projects that add new capacity, service, or access and
   the operating costs directly related to the foregoing, (iv) the issuance costs
   and debt service on bonds that may be issued to support the capital costs
   permitted in subdivisions (i), (ii), or (iii), or (v) for a locality subject
   to &#xA7; 33.2-3404, any other transportation purposes, provided that the
   amount used does not exceed the amount such locality is required to transfer
   pursuant to &#xA7; 33.2-3404;

   2. Any local ordinance adopted in accordance with the provisions of subsection
   C and this subsection shall include the requirement that the additional real
   property taxes so authorized are to be imposed annually in accordance with
   applicable law;

   3. Any locality that imposes the additional real property taxes set forth in
   subsections A and B shall not be permitted to also impose the additional real
   property taxes set forth in subsection C and this subsection. In addition, any
   locality electing to impose the additional real property taxes on all real
   property located in such locality that is specially classified in subsections
   A and B must do so in the manner prescribed in subsections A and B and not by
   creation of a special transportation tax district as set forth in subsection C
   and this subsection. The creation of such special regional transportation tax
   districts shall not, however, affect the authority of a locality to establish
   tax districts pursuant to other provisions of law;

   4. The total revenues generated from the additional real property taxes
   imposed in accordance with subsection C and this subsection shall not be less
   than 85% of the revenues estimated to be generated when imposing the
   additional real property taxes in accordance with subsections A and B at the
   rate of $0.125 per $100 of assessed value in any locality embraced by the
   Northern Virginia Transportation Authority and at the rate of $0.10 per $100
   of assessed value in any locality wholly embraced by the Hampton Roads
   metropolitan planning area as of January 1, 2008, pursuant to &#xA7; 134 of
   Title 23 of the United States Code; and

   5. The additional real property taxes imposed pursuant to subsection C and
   this subsection shall be levied, administered, enforced, and collected, in the
   same manner as set forth in Subtitle III of Title 58.1 for the levy,
   administration, enforcement, and collection of all local taxes. In addition,
   the local assessor shall separately assess and set forth upon the
   locality&#8217;s land book the fair market value of that portion of property
   that is defined as separate class of real property for local taxation in
   accordance with the provisions of this section.

HISTORY: 2007, c. 896; 2009, cc. 677, 822, 864, 871; 2018, cc. 854, 856.