Real property; tax classification of land and improvements in City of Newport News.

Plain English Breakdown

The bill summary and text do not specify a minimum non-zero value for the improvement tax rate beyond it being non-zero.

Real Property Tax Changes for Newport News

This bill allows the City of Newport News to set a different tax rate for buildings and other improvements compared to the land they are on, as long as it is not higher than the land tax.

What This Bill Does

• Allows Newport News to charge a separate tax rate for buildings and other structures (improvements) from the land underneath them.
• Requires that the tax rate for improvements must be at least something but cannot exceed the land's tax rate.
• Does not allow Newport News to change how it values real property when setting these different rates.

Who It Names or Affects

• The City of Newport News
• Property owners in Newport News

Terms To Know

Improvements

Buildings, structures, and other additions to land that increase its value.

Valuation

The process of determining the worth or value of property for tax purposes.

Limits and Unknowns

• Does not specify what happens if Newport News decides not to use this new authority.
• Only applies to certain cities in Virginia, specifically mentioning Newport News among others.
• Doesn't provide details on how public notice and hearings will be conducted for the tax changes.

Official Summary Text

Real property tax; classification of land and improvements; City of Newport News.
Authorizes the City of Newport News to levy a tax on the improvements to real property at a different rate than the tax imposed upon the land on which it is located. The rate levied on the improvements to real property shall not be zero and shall not exceed the rate of tax on the land on which it is located. This bill was incorporated into HB 282.

Current Bill Text

A BILL to amend and reenact §
58.1-3221.1
of the Code of Virginia, relating to real property tax; classification of land and improvements; City of Newport News.

Be it enacted by the General Assembly of Virginia:

1. That §
58.1-3221.1
of the Code of Virginia is amended and reenacted as follows:

§
58.1-3221.1
. Classification of land and improvements for tax purposes.

A. In the Cities of Fairfax,
Newport News,
Poquoson, Richmond, and Roanoke, improvements to real property are declared to be a separate class of property and shall constitute a separate classification for local taxation of real property.

B. The governing body of the City of Fairfax,
the City of Newport News,
the City of Richmond, and the City of Roanoke, after giving public notice and an opportunity for the public to be heard in the manner provided in §
58.1-3007
, may levy a tax on the property enumerated in subsection A at a different rate than the tax imposed upon the land on which it is located, provided that the rate of tax on the property described in subsection A shall not be zero and shall not exceed the rate of tax on the land on which it is located.

C. Nothing in this section shall be construed to permit the City of Fairfax,
Newport News,
Poquoson, Richmond, or Roanoke to alter in any way its valuation of real property covered by this section.

D. The governing body of the City of Poquoson, after giving public notice and an opportunity for the public to be heard in the manner provided in §
58.1-3007
, may levy a tax on the property enumerated in subsection A at a different rate than the tax imposed upon the land on which it is located, provided that the rate of tax on the property described in subsection A shall not be zero.