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2022 SESSION
22104361DBe it enacted by the General Assembly of Virginia:
1. That § 58.1-3221.3 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3221.3. Classification of certain commercial and industrial real property and taxation of such property by certain localities.
A. Beginning January 1, 2008, and solely for the purposes of
imposing the tax authorized pursuant to this section, in the counties and
cities that are wholly embraced by the Northern Virginia Transportation
Authority and the Hampton Roads metropolitan planning area as of January 1,
2008, pursuant to 23 U.S.C.
§ 134 of Title 23 of the United States Code,
all real property used for or zoned to permit commercial or industrial uses is
hereby declared to be a separate class of real property for local taxation. Beginning January 1, 2020, and solely for the
purposes of imposing the tax authorized pursuant to this section, in the
counties and cities that are wholly embraced by Planning District 3, 4, 5, 6,
or 7, or any combination of such planning districts, all real property used for
or zoned to permit commercial or industrial use is hereby declared to be a
separate class of real property for local taxation. Such
classification of real property shall exclude all residential uses and all
multifamily residential uses, including but not limited to single family
residential units, cooperatives, condominiums, townhouses, apartments, or homes
in a subdivision when leased on a unit by unit basis even though these units
may be part of a larger building or parcel of real estate containing more than
four residential units.
B. In addition to all other taxes and fees permitted by law,
(i) the governing body of any locality embraced by the Northern Virginia
Transportation Authority may, by ordinance, annually impose on all real
property in the locality specially classified in subsection A: an amount of
real property tax, in addition to such amount otherwise authorized by law, at a
rate not to exceed $0.125 per $100 of assessed value as the governing body may,
by ordinance, impose upon the annual assessed value of all real property used
for or zoned to permit commercial or industrial uses; and
(ii) the governing body of any locality wholly embraced by the Hampton Roads
metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23
of the United States Code may, by ordinance, annually impose on all real
property in the locality specially classified in subsection A: an amount of
real property tax, in addition to such amount otherwise authorized by law, at a
rate not to exceed $0.10 per $100 of assessed value as the governing body may,
by ordinance, impose upon the annual assessed value of all real property used
for or zoned to permit commercial or industrial uses; and
(iii) the governing body of any locality wholly embraced by Planning District
3, 4, 5, 6, or 7, or any combination of such planning districts, may, by
ordinance, annually impose on all real property in the locality specially
classified in subsection A an amount of real property tax, in addition to such
amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of
assessed value as the governing body may,
by ordinance, impose upon the annual assessed value of all real property used
for or zoned to permit commercial or
industrial uses. The
authority granted in this subsection shall be subject to the following
conditions:
(1) 1. Upon
appropriation, all revenues generated from the additional real property tax
imposed shall be used to benefit the locality imposing the tax solely for (i)
new road construction and associated planning, design, and right-of-way
acquisition, including new additions to, expansions, or extensions of existing
roads that add new capacity, service, or access, (ii) new public transit
construction and associated planning, design, and right-of-way acquisition,
including new additions to, expansions, or extensions of existing public
transit projects that add new capacity, service, or access, (iii) other capital
costs related to new transportation projects that add new capacity, service, or
access and the operating costs directly related to the foregoing, (iv) the
issuance costs and debt service on bonds that may be issued to support the
capital costs permitted in subdivisions (i), (ii), or (iii), or (v) for a
locality subject to § 33.2-3404, any other transportation purposes, provided
that the amount used does not exceed the amount such locality is required to
transfer pursuant to § 33.2-3404; and
(2) 2. The
additional real property tax imposed shall be levied, administered, enforced,
and collected in the same manner as set forth in Subtitle III of Title 58.1 for
the levy, administration, enforcement, and collection of local taxes. In
addition, the local assessor shall separately assess and set forth upon the
locality's land book the fair market value of that portion of property that is
defined as a separate class of real property for local taxation in accordance
with the provisions of this section.
C. Beginning January 1, 2008, in lieu of the authority set
forth in subsections A and B above and solely for the purposes of imposing the
tax authorized pursuant to this section, in the counties and cities wholly
embraced by the Northern Virginia Transportation Authority and the Hampton
Roads metropolitan planning area as of January 1, 2008, pursuant to 23 U.S.C. § 134 of Title 23 of the United States Code,
all real property used for or zoned to permit commercial or industrial uses is
hereby declared to be a separate class of real property for local taxation. Beginning January 1, 2020, and solely for the
purposes of imposing the tax authorized pursuant to this section, in the
counties and cities that are wholly embraced by Planning District 3, 4, 5, 6,
or 7, or any combination of such planning districts, all real property used or
zoned to permit commercial or industrial use is hereby declared to be a
separate class of real property for local taxation. Such
classification of real property shall exclude all residential uses and all
multifamily residential uses, including but not limited to single family
residential units, cooperatives, condominiums, townhouses, apartments, or homes
in a subdivision when leased on a unit by unit basis even though these units
may be part of a larger building or parcel of real estate containing more than
four residential units.
D. In addition to all other taxes and fees permitted by law,
(i) the governing body of any locality embraced by the Northern Virginia
Transportation Authority may, by ordinance, create within its boundaries, one
or more special regional transportation tax districts and, thereafter, may, by
ordinance, impose upon the real property located in special regional
transportation tax districts specially classified in subsection C within such
special regional transportation tax districts: an amount of real property tax,
in addition to such amounts otherwise authorized by law, at a rate not to
exceed $0.125 per $100 of assessed value as the governing body may, by
ordinance, impose upon the annual assessed value of all real property used for
or zoned to permit commercial or industrial uses; and,
(ii) the governing body of any locality wholly embraced by the Hampton Roads
metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23
of the United States Code may, by ordinance, create within its boundaries, one
or more special regional transportation tax districts and, thereafter, may, by
ordinance, impose upon the real property specially classified in subsection C
within such special regional transportation tax districts: an amount of real
property tax, in addition to such amounts otherwise authorized by law, at a
rate not to exceed $0.10 per $100 of assessed value as the governing body may,
by ordinance, impose upon the annual assessed value of all real property used
for or zoned to permit commercial or industrial uses; and
(iii) the governing body of any locality wholly embraced by Planning District
3, 4, 5, 6, or 7, or any combination of such planning districts, may, by
ordinance, annually impose on all real property in the locality specially
classified in subsection A an amount of real property tax, in addition to such
amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of
assessed value as the governing body may,
by ordinance, impose upon the annual assessed value of all real property used
for or zoned to permit commercial or industrial uses. The
authority granted in this subsection shall be subject to the following
conditions:
(1) 1. Notwithstanding
any other provisions of law to the contrary, upon appropriation, all revenues generated
from the additional real property taxes imposed in accordance with subsection C
and this subsection shall be used for transportation purposes that benefit the
special regional transportation tax district to which such revenue is
attributable and solely for (i) new road construction and associated planning,
design, and right-of-way acquisition, including new additions to, expansions,
or extensions of existing roads that add new capacity, service, or access, (ii)
new public transit construction and associated planning, design, and
right-of-way acquisition, including new additions to, expansions, or extensions
of existing public transit projects that add new capacity, service, or access,
(iii) other capital costs related to new transportation projects that add new
capacity, service, or access and the operating costs directly related to the
foregoing, (iv) the issuance costs and debt service on bonds that may be issued
to support the capital costs permitted in subdivisions (i), (ii), or (iii), or
(v) for a locality subject to § 33.2-3404, any other transportation purposes,
provided that the amount used does not exceed the amount such locality is
required to transfer pursuant to § 33.2-3404;
(2) 2. Any
local ordinance adopted in accordance with the provisions of subsection C and
this subsection shall include the requirement that the additional real property
taxes so authorized are to be imposed annually in accordance with applicable
law;
(3) 3. Any
locality that imposes the additional real property taxes set forth in
subsections A and B shall not be permitted to also impose the additional real
property taxes set forth in subsection C and this subsection. In addition, any
locality electing to impose the additional real property taxes on all real
property located in such locality that is specially classified in subsections A
and B must do so in the manner prescribed in subsections A and B and not by
creation of a special transportation tax district as set forth in subsection C
and this subsection. The creation of such special regional transportation tax
districts shall not, however, affect the authority of a locality to establish
tax districts pursuant to other provisions of law;
(4) 4. The
total revenues generated from the additional real property taxes imposed in
accordance with subsection C and this subsection shall not be less than 85% of
the revenues estimated to be generated when imposing the additional real
property taxes in accordance with subsections A and B at the rate of $0.125 per
$100 of assessed value in any locality embraced by the Northern Virginia
Transportation Authority and at the rate of; $0.10 per $100 of assessed
value in any locality wholly embraced by the Hampton Roads metropolitan
planning area as of January 1, 2008, pursuant to 23
U.S.C. § 134 of Title 23 of the United
States Code; and $0.10 per $100 of
assessed value in any locality wholly embraced by Planning District 3, 4, 5, 6, or
7, or any combination of such planning districts; and
(5) 5. The
additional real property taxes imposed pursuant to subsection C and this
subsection shall be levied, administered, enforced, and collected, in the same
manner as set forth in Subtitle III of Title 58.1 for the levy, administration,
enforcement, and collection of all local taxes. In addition, the local assessor
shall separately assess and set forth upon the locality's land book the fair
market value of that portion of property that is defined as separate class of
real property for local taxation in accordance with the provisions of this
section.