SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2013 SESSION
13101105DBe it enacted by the General Assembly of Virginia:
1. That § 58.1-3237 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3237. Change in use or zoning of real estate assessed under ordinance; roll-back taxes.
A. 1. When
real estate qualifies for assessment and taxation on the basis of use under an
ordinance adopted pursuant to this article, and the use by which it qualified
changes to a nonqualifying use, or the zoning of the real estate is changed to
a more intensive use at the request of the owner or his agent, it shall be
subject to additional taxes, hereinafter referred to as roll-back taxes. Such
additional taxes shall only be assessed against that portion of such real
estate which that
no longer qualifies for assessment and taxation on the basis of use or zoning.
Liability for roll-back taxes shall attach and be paid to the treasurer only if
the amount of tax due exceeds ten dollars $10.
2. Notwithstanding other provisions of this section, when the zoning of the real estate that qualifies on the basis of use under an ordinance adopted pursuant to this article is changed to a more intensive use at the request of the owner or his agent, the locality, by ordinance, may choose not to impose roll-back taxes and not to have such zoning otherwise affect eligibility for taxation and assessment under this article.
B. In localities which have not adopted a sliding scale ordinance, the roll-back tax shall be equal to the sum of the deferred tax for each of the five most recent complete tax years including simple interest on such roll-back taxes at a rate set by the governing body, no greater than the rate applicable to delinquent taxes in such locality pursuant to § 58.1-3916 for each of the tax years. The deferred tax for each year shall be equal to the difference between the tax levied and the tax that would have been levied based on the fair market value assessment of the real estate for that year. In addition the taxes for the current year shall be extended on the basis of fair market value which may be accomplished by means of a supplemental assessment based upon the difference between the use value and the fair market value.
C. In localities which have adopted a sliding scale ordinance, the roll-back tax shall be equal to the sum of the deferred tax from the effective date of the written agreement including simple interest on such roll-back taxes at a rate set by the governing body, which shall not be greater than the rate applicable to delinquent taxes in such locality pursuant to § 58.1-3916, for each of the tax years. The deferred tax for each year shall be equal to the difference between the tax levied and the tax that would have been levied based on the fair market value assessment of the real estate for that year and based on the highest tax rate applicable to the real estate for that year, had it not been subject to special assessment. In addition the taxes for the current year shall be extended on the basis of fair market value which may be accomplished by means of a supplemental assessment based upon the difference between the use value and the fair market value and based on the highest tax rate applicable to the real estate for that year.
D. Liability to the roll-back taxes shall attach when a change
in use occurs,. or Liability to the roll-back taxes shall also attach
when a change in zoning of the real estate to a more
intensive use at the request of the owner or his agent occurs, unless the locality has
adopted an ordinance as authorized under subdivision A 2 .
Liability to the roll-back taxes shall not attach when a change in ownership of
the title takes place if the new owner does not rezone the real estate to a
more intensive use, or if the locality has
adopted an ordinance as authorized under subdivision A 2,
and continues the real estate in the use for which it is classified under the
conditions prescribed in this article and in the ordinance. The owner of any
real estate which has been zoned to more intensive use at the request of the
owner or his agent as provided in subsection E, or otherwise subject to or
liable for roll-back taxes, shall, within sixty 60 days following such change
in use or zoning, report such change to the commissioner of the revenue or
other assessing officer on such forms as may be prescribed. The commissioner
shall forthwith determine and assess the roll-back tax, which shall be assessed
against and paid by the owner of the property at the time the change in use
which no longer qualifies occurs, or, unless the locality has
adopted an ordinance as authorized
under subdivision A 2,
at the time of the zoning of the real estate to a more intensive use at the
request of the owner or his agent occurs, and shall be paid to the treasurer
within thirty days of the assessment. If the amount due is not paid by the due
date, the treasurer shall impose a penalty and interest on the amount of the
roll-back tax, including interest for prior years. Such penalty and interest
shall be imposed in accordance with §§ 58.1-3915 and 58.1-3916.
E. Real property zoned to a more intensive use, at the request
of the owner or his agent, shall be subject to and liable for the roll-back tax
at the time such zoning is changed, unless the locality has
adopted an ordinance as authorized in subdivision A 2. The
roll-back tax shall be levied and collected from the owner of the real estate
in accordance with subsection D. Real property zoned to a more intensive use
before July 1, 1988, at the request of the owner or his agent, shall be subject
to and liable for the roll-back tax at the time the qualifying use is changed
to a nonqualifying use. Real property zoned to a more intensive use at the
request of the owner or his agent after July 1, 1988, shall be subject to and
liable for the roll-back tax at the time of such zoning, unless
the locality has adopted an ordinance as authorized in subdivision A 2.
Said roll-back tax, plus interest calculated in accordance with subsection B,
shall be levied and collected at the time such property was rezoned. For
property rezoned after July 1, 1988, but before July 1, 1992, no penalties or
interest, except as provided in subsection B, shall be assessed, provided the
said roll-back tax is paid on or before October 1, 1992. No Unless the locality has
adopted an ordinance as authorized in subdivision A 2,
no real property rezoned to a
more intensive use at the request of the owner or his agent shall be eligible
for taxation and assessment under this article, provided that these provisions
shall not be applicable to any rezoning which is required for the
establishment, continuation, or expansion of a qualifying use. If the property
is subsequently rezoned to agricultural, horticultural, or open space, it shall
be eligible for consideration for assessment and taxation under this article
only after three years have passed since the rezoning was effective.
However, the owner of any real property that qualified for
assessment and taxation on the basis of use, and whose real property was
rezoned to a more intensive use at the owner's request prior to 1980, may be
eligible for taxation and assessment under this article provided the owner
applies for rezoning to agricultural, horticultural, open-space or forest use.
The real property shall be eligible for assessment and taxation on the basis of
the qualifying use for the tax year following the effective date of the
rezoning. If any such real property is subsequently rezoned to a more intensive
use at the owner's request, within five years from the date the property was
initially rezoned to a qualifying use under this section, the owner shall be
liable for roll-back taxes when the property is rezoned to a more intensive use, unless the locality has adopted an ordinance as
authorized in subdivision A 2.
Additionally, the owner shall be subject to a penalty equal to fifty percent of
the roll-back taxes due as determined under subsection B of
this section.
F. If real estate annexed by a city and granted use value assessment and taxation becomes subject to roll-back taxes, and such real estate likewise has been granted use value assessment and taxation by the county prior to annexation, the city shall collect roll-back taxes and interest for the maximum period allowed under this section and shall return to the county a share of such taxes and interest proportionate to the amount of such period, if any, for which the real estate was situated in the county.