Bill
Bill > HB1561
summary
Introduced
12/14/2024
12/14/2024
In Committee
12/14/2024
12/14/2024
Crossed Over
Passed
Dead
02/22/2025
02/22/2025
Introduced Session
2025 Regular Session
Bill Summary
Classification of land and improvements for tax purposes; localities. Reclassifies improvements to real property as a separate class of real property and authorizes any locality to impose a real property tax on improvements to real property at a tax rate that is different than the rate applied to the land on which such improvements are located. Such rate may exceed, equal, or be less than the tax imposed upon the land on which the improvements are located.Under current law, such classification is allowed only for the Cities of Fairfax, Poquoson, Richmond, and Roanoke. For the Cities of Fairfax, Richmond, and Roanoke, the rate applied is required to be less than the rate applied to land under current law. The City of Poquoson is currently the only locality authorized to impose a rate in excess of the rate applied to land. The bill applies only to taxable years beginning on and after July 1, 2025.
AI Summary
This bill expands the current law on property tax classification by allowing all localities in Virginia (not just the previously specified cities of Fairfax, Poquoson, Richmond, and Roanoke) to classify improvements to real property as a separate class of property for taxation purposes. Under the proposed legislation, local governing bodies can now levy taxes on property improvements at a different rate than the land itself, with the only restriction being that the tax rate cannot be zero. Previously, the tax rate on improvements was limited to being less than or equal to the land tax rate. The bill maintains that localities cannot change how they value real property, ensuring that only the tax rate can be adjusted. This change will take effect for taxable years beginning on or after July 1, 2025, giving localities more flexibility in how they structure their property tax rates while preserving the fundamental assessment of property value.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Left in Finance (on 02/04/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20251/HB1561 |
| Fiscal Note/Analysis - Impact statement from TAX (HB1561) | https://lis.blob.core.windows.net/files/1018800.PDF |
| BillText | https://lis.virginia.gov/bill-details/20251/HB1561/text/HB1561 |
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