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

Plain English Breakdown

The official source material does not provide specific details on how much higher the improvement tax can be compared to the land tax, only that it must be non-zero and cannot exceed the land's tax rate.

Real Property Tax Changes for Fredericksburg

This bill allows the City of Fredericksburg to set a different tax rate for buildings and other improvements on land compared to the land itself, as long as the improvement tax is not zero and does not exceed the land tax.

What This Bill Does

• Allows Fredericksburg to charge a separate tax rate for buildings and other improvements on land.
• Requires that the tax rate for improvements must be higher than zero but cannot be more than the land's tax rate.

Who It Names or Affects

• The City of Fredericksburg
• Property owners and businesses within Fredericksburg

Terms To Know

Improvements to real property

Buildings, structures, or other enhancements on land.

Valuation of real property

The process of determining the worth of a piece of property for tax purposes.

Limits and Unknowns

• Does not specify how much higher the improvement tax can be compared to the land tax.
• Only applies to Fredericksburg and does not affect other cities unless they are specifically mentioned in the bill.

Official Summary Text

Real property tax; classification of land and improvements; City of Fredericksburg.
Authorizes the City of Fredericksburg 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

SENATE BILL NO. __________ HOUSE BILL NO. _________
_

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 Fredericksburg.

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,
Fredericksburg,
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 Fredericksburg,
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,
Fredericksburg,
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.