                                 CODE OF VIRGINIA

PARTIAL EXEMPTION FOR CERTAIN REHABILITATED, RENOVATED OR REPLACEMENT COMMERCIAL
OR INDUSTRIAL STRUCTURES (§ 58.1-3221)

A. The governing body of any county, city or town may, by ordinance, provide for
the partial exemption from taxation of real estate on which any structure or
other improvement no less than 20 years of age, or 15 years of age if the
structure is located in an area designated as an enterprise zone by the
Commonwealth or as a technology zone by any county, city or town pursuant to
&#xA7; 58.1-3850, has undergone substantial rehabilitation, renovation or
replacement for commercial or industrial 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 partial
exemption authorized by this provision and may require the structure to be older
than 20 years of age, or 15 years of age if the structure is located in an area
designated as an enterprise zone by the Commonwealth, or as a technology zone by
any county, city or town pursuant to &#xA7; 58.1-3850 or place such other
restrictions and conditions on such property as may be prescribed by ordinance.
Such ordinance may also provide for the partial exemption from taxation of real
estate that has been substantially rehabilitated by complete replacement for
commercial and industrial use.

B. The partial exemption provided by the local governing body may not exceed an
amount equal to the increase in assessed value resulting from the
rehabilitation, renovation or replacement of the commercial or industrial
structure as determined by the commissioner of revenue or other local assessing
officer or an amount up to 50 percent of the cost of rehabilitation, renovation
or replacement as determined by ordinance. The 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 15 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 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
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 landmark.

HISTORY: Code 1950, § 58-760.3; 1979, c. 195; 1980, c. 417; 1984, c. 675; 1986,
c. 271; 1989, c. 89; 1994, cc. 424, 435, 608; 1995, c. 673; 2001, c. 489; 2002,
cc. 8, 137; 2017, c. 24.