SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2002 SESSION

023102476
SENATE BILL NO. 253
Offered January 9, 2002
Prefiled January 8, 2002
A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 32 of Title 58.1 a section numbered 58.1-3228.1, relating to procedures for the assessment of single-family residences used exclusively by the owner as the owner's primary personal residence.
----------
Patron-- Miller, K.G.
----------
Referred to Committee on Finance
----------

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 3 of Chapter 32 of Title 58.1 a section numbered 58.1-3228.1 as follows:

§ 58.1-3228.1. Assessment of owner-occupied single-family residences.

A. Notwithstanding any other provision of law, for real estate, used exclusively and continuously as the primary personal residence of the owner, the assessor or appraiser designated under this chapter shall determine the fair market value and assessed valuation for tax purposes in accordance with the following:

1. Where the property is purchased by the taxpayer in an arms-length transaction for cash, cash equivalent, or debt, the purchase price shall be deemed to be the fair market value.

2. Where the residence is constructed on the owner's land, the fair market value of the residence shall be the fair market value of the land immediately prior to construction plus the total contract price of all improvements. This provision shall not apply if the improvements are self-constructed or if the owner acts as his own contractor.

3. The fair market value of the personal residence as of the date of acquisition of ownership shall be determined by a physical inspection and market study of the surrounding neighborhood where ownership of the personal residence is obtained wholly or in part by any of the following:

a. Inheritance or gift, other than from a spouse.

b. Trade or exchange of property other than for cash, cash equivalent, or debt.

c. Self-construction, including the owner acting as his own contractor.

d. Compensation for services.

e. Adverse possession.

f. Distribution from a corporation, partnership, trust, or other entity in which the taxpayer had an ownership interest at the time of the transfer.

g. Bargain purchase where either the buyer or the seller was in a posture of unusual compulsion to buy or to sell. However, purchase at a properly advertised and bona fide public auction shall not be regarded as a bargain purchase.

The physical inspection and market study shall be made within a reasonable period of time subsequent to the transfer of ownership.

4. The fair market value of any improvement, renovation, or reconstruction while the owner continues to use the residence shall be added to the previously established assessed valuation of the property.

B. The fair market value and assessed valuation for real estate tax purposes, established in accordance with the above, shall not change so long as the owner, owner's spouse, or owner's surviving spouse continues to use the property as his primary personal residence unless the owner makes a written request for a reassessment. The written request may be made only when the owner can show that any unrestored decline in fair market value is due to causes beyond his control such as fire, storm, earthquake, flood or other similar incident. Vacations or time spent in any medical care facility, home for adults, nursing home, or any absence caused by a physical or mental condition of the owner of the property shall not be regarded as an interruption in the continuous use of the property as a primary personal residence.

C. The provisions of this section shall apply only to single-family residences, which for purposes of this section mean structures maintained and used as single dwelling units or any dwelling units that share neither heating facilities, hot water equipment, nor any other essential facility or service with any other dwelling unit. A dwelling unit is a structure or part of a structure that is used as a home or a residence by one or more persons who maintain a household, including condominiums and townhouses. Mobile homes shall not be included. However, a single-family residence shall not include any structure where the recorded deed for the owner's personal residence includes more than one dwelling unit.

2. Acquisitions or new construction on or after January 1, 2005, of property qualifying for tax assessment under this act shall not be subject to any transitional modifications. In addition, qualifying property acquired prior to January 1, 2005, shall continue to be assessed for tax purposes at the value on record as of January 1, 2005, subject to the provisions of subsection A of § 58.1-3229.

3. That the provisions of this act shall become effective for taxable years beginning on or after January 1, 2005, upon the prior approval by the General Assembly of an amendment to the Constitution of Virginia providing that the General Assembly may prescribe a measure or process other than fair market value to be used for the assessment of personal residences and the subsequent ratification of such proposed amendment by the voters of Virginia as provided in Section 1 of Article XII of the Constitution of Virginia at the election to be held on the Tuesday after the first Monday in November 2004.