Bill > HB2449

This bill creates a new method of property tax assessment for certain leased real estate used for agricultural and open-space purposes. Specifically, the bill allows local governments to assess "qualifying leased real estate" at a different value than standard property assessments. Qualifying leased real estate is defined as land devoted to open-space use that is subject to an active lease where the lessor is using the property for agricultural purposes. The bill establishes definitions for "agricultural use valuation," "open-space use valuation," and "valuation difference" to clarify how these properties can be assessed. Local governments can choose to implement this assessment method, but it will only apply in localities where open-space land is typically assessed at a higher value than agricultural land. Taxpayers must apply to the local commissioner of revenue to qualify for this special assessment, and while detailed lease documents cannot be required, owners and lessees must complete an affidavit confirming the lease terms and agricultural use. The bill also allows localities to potentially offer reduced valuations for properties with longer lease terms, providing an incentive for extended agricultural leases on open-space land.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2449