2006 Code of Virginia § 55-428 - Property classification of cooperative interests; taxation

55-428. Property classification of cooperative interests; taxation.

A. A cooperative interest is real estate for all purposes. Unless waived by aproprietary lessee, a cooperative interest is subject to the provisions of 34-1 through 34-34, regarding the homestead exemption.

B. Any portion of the common elements for which the declarant has reservedany development right must be separately taxed and assessed against thedeclarant, and the declarant alone is liable for the payment of those taxes.

C. When the highest and best use of any parcel improved by a multi-unitcooperative apartment complex is achieved by sale of the cooperativeapartment units as individual units, the fair market value of the parcelshall be determined by aggregating the fair market value of all taxable realestate which is part of the parcel including, without limitation, eachcooperative apartment unit and common elements. The fair market value of eachsuch cooperative apartment unit shall be established by determining its fairmarket value for sale as an individual unit, determined in the same manner,mutatis mutandis, as the fair market value of condominium units. Tax billsshall be issued for each individual cooperative apartment unit.

No assessment of any parcel improved by a multi-unit cooperative apartmentcomplex, whether the assessment was made before or after the adoption of thissubsection, shall be held to be invalid because of the use of the methoddescribed in this subsection to determine the assessment.

D. Any duly authorized real estate assessor, board of assessors, ordepartment of real estate assessments may require that all declarants,associations, master associations and proprietary lessees' associations inthe county or city subject to local taxation furnish to such assessor, boardor department on or before a time specified a statement listing all transfersof the cooperative apartment units over a specified period of time and astatement listing all owners and proprietary lessees of the cooperativeapartment units as of a specified date. Each such statement shall becertified as to its accuracy by the declarant, association, masterassociation or proprietary lessees' association for which the statement isfurnished, or a duly authorized agent thereof. Any statement required by thissubsection shall be kept confidential in accordance with the provisions of 58.1-3.

E. Notwithstanding any other provision of law, the provisions of subsectionsC and D of this section shall apply to all cooperatives created in thisCommonwealth, whether created before, on, or after July 1, 1982. However,subsections C and D shall not apply to any multi-unit cooperative apartmentcomplex, the cooperative apartment units of which have been continually inuse as such since December 31, 1967.

F. Any residential cooperative association, the members of which are ownersof cooperative interests in a cooperative under this chapter, shall not bedeemed to be a business for any state and local purposes, including, but notlimited to, liability for payment of sales, meals, hotel, motel or grossreceipts taxes and business licenses, to the extent that it collects paymentsfrom residents of the cooperative. The provisions of this subsection aredeclaratory of existing law.

G. Any tangible personal property owned by a residential cooperativeassociation that would be considered household goods and personal effects ifowned and used by an individual or by a family or household incident tomaintaining an abode shall be considered household goods and personal effectsowned and used by an individual or by a family or household incident tomaintaining an abode for purposes of 58.1-3504 and any local ordinanceauthorized thereby. The provisions of this subsection are declaratory ofexisting law.

(1982, c. 277; 1988, c. 412; 2002, c. 34; 2003, c. 351.)