HB 2449 Virginia House of Delegates · 2025 Regular Session

Real property tax; special assessment for land preservation.

Summary

Real property tax; special assessment for land preservation. Allows a locality to provide for the use value assessment and taxation of qualifying leased real estate. Qualifying leased real estate is defined in the bill as real estate devoted to open-space use that is subject to an active lease with a lessor who is using the property for agricultural purposes. The taxpayer seeking to qualify for the different assessment of any such qualifying leased real estate must apply to the commissioner of the revenue and provide any documentation necessary to determine eligibility.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 8, 2025 Last action Feb 4, 2025

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What changed between versions

Introduced → Subcommittee #1 Substitute Offered · 4 edits

MODERATE

The bill was amended from its original introduced version to a substitute version offered by the House Committee on Finance. The amendment significantly simplified the assessment rules for open-space land leased for agricultural purposes, replacing specific lease-term-based valuation percentages with a more flexible framework that allows localities to set their own processes for reduced valuations based on lease length. It also added new protections limiting the commissioner's ability to require detailed leases while still permitting affidavits to verify lease terms.

Scope change

The bill's scope remains focused on real property tax assessment for open-space land leased for agricultural purposes, but the specific valuation calculations were substantially modified to give localities more flexibility.

REQUIREMENT

Replaced fixed percentage-based valuation calculations tied to specific lease lengths with a flexible framework allowing localities to establish their own processes for determining reduced valuations based on lease terms.

Added a new subsection E clarifying that the commissioner cannot require detailed leases but may require sworn affidavits from owners and lessees.

ENFORCEMENT

Added a provision limiting the commissioner of revenue from requiring detailed leases, while allowing affidavits to verify lease length and agricultural use.

DEFINITION

Removed the specific definition of 'Valuation difference' from the operative text, as the new framework does not rely on fixed percentage calculations of this difference.

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Full legislative history

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Key actions

Committee

Jan 24, 2025

Committee

Assigned Finance sub: Subcommittee #1

lower

Jan 8, 2025

Committee

Referred to Committee on Finance

lower

1 primary · 0 co-sponsors