                                 CODE OF VIRGINIA

MINERAL LANDS TO BE SPECIALLY AND SEPARATELY ASSESSED; SEVERANCE TAX (§
58.1-3286)

The several commissioners of the revenue shall, as soon as practicable after
January 1 of each year, specially and separately assess at the fair market value
all mineral lands and the improvements thereon and shall enter the same on the
land books of their respective counties separately from other lands charged
thereon.
		The commissioner, in assessing mineral lands, shall set forth upon the land
book:

1. The area and the fair market value of such portion of each tract as is
improved and under development;

2. The fair market value of the improvements upon each tract; and

3. The area and fair market value of such portion of each tract not under
development.
			Notwithstanding any other provision of law and subject to the approval of the
Board of Supervisors of Buchanan County, the commissioner of the revenue of the
county may reassess gas wells and related improvements on an annual basis,
provided that such gas wells and related improvements shall be reassessed in the
general reassessment for the locality, as required by &#xA7; 58.1-3287, and
provided further a settlement agreement between the County and a taxpayer may
provide a methodology for determining fair market value.
			In the alternative to the procedure outlined in subdivision 1 above, any
county or city may impose by ordinance a severance tax on all coal and gases
extracted from the land lying within its jurisdiction. The rate of such tax
shall not exceed one percent of the gross receipts from such coal or gases. Any
such county or city may further require any producer of such coal or gases and
any common carrier to maintain records showing the quantities of coal and gases
which they have produced or transported, respectively.
			If the surface of the land is held by one person, and the coal, iron and
other minerals, mineral waters, gas or oil under the surface are held by another
person, the estate therein of each and the relative fair market value of their
respective interests shall be ascertained by the commissioner. If the surface of
the land and the coal, iron and other minerals, mineral waters, gas or oil under
the surface are owned by the same person, the commissioner shall ascertain the
fair market value of the land, exclusive of the coal, iron, other minerals,
mineral waters, gas or oils. He shall also ascertain the fair market value of
the coal, iron, other minerals, mineral waters, gas, and oils and shall assess
each at such ascertained values, stating separately in every case the value of
the surface of the land and the value of the coal, iron, other minerals, mineral
waters, gas and oils under the surface.
			The commissioner of the revenue of any county or city is authorized to enter
into agreements with taxpayers pertaining to the fair market value of the
property taxed under this section. All such agreements entered into on or after
January 1, 2013, but prior to July 1, 2014, between the commissioner of the
revenue of any county or city and any taxpayer are deemed to be bona fide and
are valid and enforceable.

HISTORY: Code 1950, § 58-774; 1972, c. 715; 1976, c. 53; 1984, c. 675; 2009, c.
770; 2014, cc. 48, 179.