2006 Code of Virginia § 58.1-3221 - Partial exemption for certain rehabilitated, renovated or replacement commercial or industrial stru...

58.1-3221. Partial exemption for certain rehabilitated, renovated orreplacement commercial or industrial structures.

A. The governing body of any county, city or town may, by ordinance, providefor the partial exemption from taxation of real estate on which any structureor other improvement no less than twenty years of age, or fifteen years ofage if the structure is located in an area designated as an enterprise zoneby the Commonwealth, has undergone substantial rehabilitation, renovation orreplacement for commercial or industrial use, subject to such conditions asthe ordinance may prescribe. The ordinance may, in addition to any otherrestrictions hereinafter provided, restrict such exemptions to real propertylocated within described zones or districts whose boundaries shall bedetermined by the governing body. The governing body of a county, city ortown may establish criteria for determining whether real estate qualifies forthe partial exemption authorized by this provision and may require thestructure to be older than twenty years of age, or fifteen years of age ifthe structure is located in an area designated as an enterprise zone by theCommonwealth, or place such other restrictions and conditions on suchproperty as may be prescribed by ordinance. Such ordinance may also providefor the partial exemption from taxation of real estate which has beensubstantially rehabilitated by complete replacement for commercial andindustrial use.

B. The partial exemption provided by the local governing body may not exceedan amount equal to the increase in assessed value resulting from therehabilitation, renovation or replacement of the commercial or industrialstructure as determined by the commissioner of revenue or other localassessing officer or an amount up to fifty percent of the cost ofrehabilitation, renovation or replacement as determined by ordinance. Theexemption may commence upon completion of the rehabilitation, renovation orreplacement, or on January 1 of the year following completion of therehabilitation, renovation or replacement and shall run with the real estatefor a period of no longer than fifteen years. The governing body of a county,city or town may place a shorter time limitation on the length of suchexemption, or reduce the amount of the exemption in annual steps over theentire period or a portion thereof, in such manner as the ordinance mayprescribe.

C. Nothing in this section shall be construed as to permit the commissionerof the revenue to list upon the land book any reduced value due to theexemption provided in subsection B.

D. The governing body of any county, city or town may assess a fee not toexceed one hundred twenty-five dollars for residential properties, or twohundred fifty dollars for commercial, industrial, and/or apartment propertiesof six units or more for processing an application requesting the exemptionprovided by this section. No property shall be eligible for such exemptionunless the appropriate building permits have been acquired and thecommissioner of the revenue or assessing officer has verified that therehabilitation, renovation or replacement indicated on the application hasbeen completed.

E. Where rehabilitation is achieved through demolition and replacement of anexisting structure, the exemption provided in subsection A shall not applywhen any structure demolished is a registered Virginia landmark or isdetermined by the Department of Historic Resources to contribute to thesignificance of a registered historic landmark.

(Code 1950, 58-760.3; 1979, c. 195; 1980, c. 417; 1984, c. 675; 1986, c.271; 1989, c. 89; 1994, cc. 424, 435, 608; 1995, c. 673; 2001, c. 489; 2002,cc. 8, 137.)