                                 CODE OF VIRGINIA

PARTIAL TAXATION BY ONE POLITICAL SUBDIVISION OF UTILITY PROPERTY OWNED BY
ANOTHER (§ 58.1-3663)

A. In the event any land or buildings constituting any portion of any water
system or other public utility owned directly or indirectly by any political
subdivision of the Commonwealth is legally assessable for taxation by any
political subdivision other than the owner of such public utility, such property
located without the limits of such owner shall be assessed only for the portion
of fair market value thereof in the proportion that the gross revenues of the
utility derived from consumers outside of the limits of the owner bears to the
gross revenues derived from the whole utility. Such proportion for each year
shall be based on the gross revenues of the year next preceding. The
commissioner of revenue shall each year so extend the assessment on his books.

B. The owner of such utility shall annually on or before April 1 report, to the
commissioner of the revenue of the county in which any of such property is
located, the gross revenues of the utility derived from consumers outside of the
limits of the owner as well as the gross revenues derived from the whole
utility. The books of the owner shall at all reasonable times be open to the
inspection of the commissioner of the revenue of any such county for the
ascertainment of such proportion of the revenues.

C. The provisions of this section shall not apply to any land or buildings
acquired by any such political subdivision by condemnation, purchase or
otherwise for any such public utility unless the same is actually used and
necessary for such public utility.

HISTORY: Code 1950, § 58-19; 1984, c. 675.