Public school funding; composite index of local ability-to-pay.

Plain English Breakdown

The bill requires that the localities have adopted ordinances allowing for use valuation and taxation before including real estate in agricultural and forestal production within specific districts.

Public School Funding; Composite Index for Local Ability-to-Pay

This bill changes how Virginia calculates the state and local shares of funding for public schools by using a new method to determine local ability-to-pay, which includes real estate used in agriculture, forestry, horticulture, and open space.

What This Bill Does

• Creates a new section in Virginia's laws about calculating school funding based on how much each area can pay.
• Uses the value of land for specific uses like farming, forestry, gardening, and keeping spaces open when figuring out local ability-to-pay.
• Includes real estate used for agriculture and forest production within certain districts if those areas have adopted ordinances allowing use valuation and taxation.

Who It Names or Affects

• Public schools across Virginia
• Localities with specific land-use ordinances for agriculture, forestry, horticulture, and open space

Terms To Know

Use Value

The value of real estate based on its current use rather than what it could sell for.

Agricultural District

An area designated by local government to protect and promote agricultural activities.

Limits and Unknowns

• Does not specify the effective date of these changes.
• The bill does not provide details on how the use value will be calculated for different types of real estate.
• It is unclear if all localities have adopted ordinances allowing for use valuation and taxation.

Official Summary Text

Public school funding; composite index of local ability-to-pay; use value of real estate devoted to certain uses.
Requires, for the purpose of determining the state and local shares of basic aid funding, that the composite index of local ability-to-pay utilize the use value of all applicable real estate (i) devoted to agricultural use, horticultural use, forest use, and open-space use in each locality that has adopted an ordinance by which it provides for the use valuation and taxation of such real estate and (ii) used in agricultural and forestal production within an agricultural district, forestal district, agricultural and forestal district, or agricultural and forestal district of local significance in each locality that provides for the use valuation and taxation of such real estate, regardless of whether it has adopted a local land-use plan or local ordinance for such valuation and taxation.

Current Bill Text

A BILL to amend the Code of Virginia by adding a section numbered
22.1-98.3
, relating to public school funding; composite index of local ability-to-pay; use value of real estate devoted to certain uses.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered
22.1-98.3
as follows:

§
22.1-98.3
. Composite index of local ability-to-pay; use value of real estate in certain localities.

For the purpose of determining the state and local shares of basic aid funding, the composite index of local ability-to-pay shall utilize the use value of all applicable real estate:

1. Devoted to agricultural use, horticultural use, forest use, and open-space use, as those terms are defined in §
58.1-3230
, in each locality that has adopted an ordinance pursuant to §
58.1-3231
by which it assesses the value of such real estate for the purpose of local taxation pursuant to §
58.1-3236
;
and

2. Used in agricultural and forestal production within (i) an agricultural district, a forestal district, or an agricultural and forestal district established pursuant to Chapter 43 (§

15.2-4300

et seq.) of Title 15.2 or (ii) an agricultural and forestal district of local significance established pursuant to Chapter 44 (§
15.2-4400
et seq.) of Title 15.2 in each locality that assesses the value of such real estate for the purpose of local taxation pursuant to §
58.1-3236
,
regardless of whether it has adopted a local land-use plan or local ordinance pursuant to §
58.1-3231
.