VirginiaReal property tax; partial exemption for repurposing underutilized structures for residential use.
What it does
Real property tax; partial exemption for repurposing underutilized structures for residential use; local incentives. Permits localities to provide partial real estate taxation exemptions for converted real property where such conversion establishes a residential structure that has set aside at least 30 percent of the structure for households with a per capita income at or below 80 percent of the locality's median income or where the building owner is subject to an agreement with the Commonwealth or the locality regarding the provision of affordable housing. Localities have discretion to determine (i) whether a converted building qualifies for the partial exemption, (ii) any additional restrictions and conditions, (iii) whether the exemption is the amount equal to the increase in assessed value or a percentage of such increase resulting from the repurposing of the structure, and (iv) the length of time the exemption will run with the land, not to exceed 15 years.
More detail
The bill provides that, at any time a building for which its owner claims a partial exemption no longer meets the requirements to receive such exemption, the locality may recapture all or a portion of the exemption granted in the immediately preceding year. Further, if a building owner that claims an exemption as described by the bill sells the building for which he is claiming the exemption and, after the sale, the property no longer meets the requirements described by the bill, the purchaser shall be subject to a penalty. The building owner shall provide written notification of the partial exemption to the purchaser. The bill also permits localities to grant tax incentives or provide regulatory flexibility to qualifying converted real property.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 12Governor's recommendation received by SenateLatest
- Mar 20Fiscal Impact statement From TAX (3/20/2026 11:42 am)
- Mar 14Governor's Action Deadline 11:59 p.m., April 13, 2026To Governor
- Mar 14Enrolled Bill communicated to Governor on March 14, 2026Minor
- Mar 10Signed by PresidentMajor
- Mar 10Signed by SpeakerMajor
- Mar 10Bill text as passed Senate and House (SB181ER)Major
- Mar 10EnrolledMinor
- Mar 4House substitute agreed to by Senate (21-Y 19-N 0-A)Major
- Vote recorded Concur House Substitute R. Result: pass.Upper
- Mar 2Passed House with substitute (70-Y 29-N 0-A)Passed House
- Vote recorded H VOTE:. Result: pass.Lower
- Mar 2Engrossed by House - committee substituteMajor
- Mar 2committee substitute agreed toMajor
- Mar 2Read third timeMinor
- Feb 27Read second timeMinor
- Feb 26Committee substitute printed 26108536D-H1Major
- Feb 25Reported from Finance with substitute (17-Y 4-N)Minor
- Vote recorded Reported from Finance with substitute. Result: pass.Lower
- Feb 24Subcommittee recommends reporting with substitute (11-Y 0-N)Major
- Vote recorded Subcommittee recommends reporting with substitute. Result: pass.Lower
- Feb 24House subcommittee offered
- Feb 20Assigned HFIN sub: Subcommittee #2Minor
- Feb 5Referred to Committee on FinanceMinor
- Feb 5Read first timeMinor
- Feb 5Placed on Calendar
- Feb 2Read third time and passed Senate (40-Y 0-N 0-A)Passed Senate
- Vote recorded Passage R. Result: pass.Upper
- Jan 30Engrossed by Senate (Voice Vote)
- Jan 30Read second timeMinor
- Jan 29Passed by for the day
- Vote recorded Constitutional reading dispensed R. Result: pass.Upper
- Jan 29Passed by for the day (Voice Vote)
- Jan 29Constitutional reading dispensed (on 1st reading) (40-Y 0-N 0-A)
- Jan 29Rules suspended
- Jan 28Reported from Finance and Appropriations (14-Y 0-N)Minor
- Vote recorded Reported from Finance and Appropriations. Result: pass.Upper
- Jan 23Fiscal Impact statement From TAX (1/23/2026 6:15 pm)
- Jan 9Referred to Committee on Finance and AppropriationsMinor
- Jan 9Prefiled and ordered printed; Offered 01-14-2026 26100919DIntroduced