summary
Introduced
12/19/2025
12/19/2025
In Committee
12/19/2025
12/19/2025
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Real property tax; classification of land and improvements. 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 shall not exceed 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, 2026.
AI Summary
This bill expands existing real property tax regulations by allowing all localities in Virginia (not just the previously specified cities of Fairfax, Poquoson, Richmond, and Roanoke) to classify land improvements as a separate property tax category. Under this legislation, local governing bodies can now levy taxes on property improvements at a rate different from the land's tax rate, with the only restriction being that the improvement tax rate cannot be zero. This means a locality could choose to tax improvements at a higher, lower, or equal rate compared to the underlying land. Importantly, the bill does not change how properties are valued, only how they can be taxed. The new tax classification rules will only take effect for taxable years beginning on or after July 1, 2026, giving localities time to prepare for and implement the new tax approach. This change provides local governments with more flexibility in structuring their real property tax strategies to meet local economic and budgetary needs.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Left in Finance (on 02/18/2026)
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/20261/HB10 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/19/2026 7:56 pm) | https://lis.blob.core.windows.net/files/1091286.PDF |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/17/2026 11:50 am) | https://lis.blob.core.windows.net/files/1089577.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB10/text/HB10 |
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