                                 CODE OF VIRGINIA

TAX INCREMENT FINANCING (§ 58.1-3245.2)

A. The governing body of any county, city or town may adopt tax increment
financing by passing an ordinance designating a development project area and
providing that real estate taxes in the development project area shall be
assessed, collected and allocated in the following manner for so long as any
obligations or development project cost commitments secured by the Tax Increment
Financing Fund, hereinafter authorized, are outstanding and unpaid.

   1. The local assessing officer shall record in the land book both the base
   assessed value and the current assessed value of the real estate in the
   development project area.

   2. Real estate taxes attributable to the lower of the current assessed value
   or base assessed value of real estate located in a development project area
   shall be allocated by the treasurer or director of finance pursuant to the
   provisions of this chapter.

   3. Real estate taxes attributable to the increased value between the current
   assessed value of any parcel of real estate and the base assessed value of
   such real estate shall be allocated by the treasurer or director of finance
   and paid into a special fund entitled the &#8220;Tax Increment Financing
   Fund&#8221; to pay the principal and interest on obligations issued or
   development project cost commitments entered into to finance the development
   project costs.

B. The governing body shall hold a public hearing on the need for tax increment
financing in the county, city or town prior to adopting a tax increment
financing ordinance. Notice of the public hearing shall be published three times
in each newspaper of general circulation in such county, city or town, with the
first publication appearing no more than 35 days before and the third
publication appearing no less than seven days before the hearing. The notice
shall include the time, place and purpose of the public hearing, define tax
increment financing, indicate the proposed boundaries of the development project
area, and propose obligations to be issued to finance the development project
area costs.

HISTORY: 1988, c. 776; 1990, c. 296; 1994, c. 667; 2023, cc. 506, 507; 2024, cc.
225, 242.