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2019 SESSION
19102326DBe 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 § 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, 2019, 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. (For contingent expiration
date, see Acts 2018, cc. 854 and 856) 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, or (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); and
(1) 1. (For contingent effective
date see Acts 2018, cc. 854 and 856) 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, 2019, 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.
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. (For contingent expiration
date, see Acts 2018, cc. 854 and 856) 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, or
(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);
(1) 2. (For contingent effective
date see Acts 2018, cc. 854 and 856) 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 § 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.