Land Use Assessment

LAND USE ASSESSMENT, for land that is being actively and bonafidely used or operated commercially for agriculture, horticulture, forest and open space use.

Quick Reference Links

• Special Use Assessments
• Qualifications for Special Classification
• Land Owner Obligations For Land Use Assessment
  • Applications
  • Revalidation
  • Change in Use or Zoning
  • Roll-back Taxes
  • Real Estate Taxes
• Questions and Answers
• Virginia's Use Value Assessment Program

Special use Assessments

Article X, Section 2 of the Constitution of Virginia provides for implementation of general law to permit local jurisdictions to grant deferral of or relief from, a portion of the real estate taxes on certain classes of real estate. The General Assembly passed legislation permitting localities, by ordinance and according to specific criteria, the authority of the special assessment and taxation of agricultural, horticultural, forest and open-space lands at its use value rather than its fair market value.

Qualifications for Special Classification

Agricultural Use: Must be devoted to the bona fide production for sale of plants and animals useful to man under uniform standards prescribed by the Commissioner of Agriculture and Consumer Services, or when devoted to and meeting the requirements and qualifications for payments or other compensation pursuant to a soil conservation program under an agreement with an agency of the federal government. Requires five acres minimum in agricultural use and a five year history of agricultural use.

Horticultural Use: Must be devoted to the bona fide production for sale of fruits of all kinds, vegetables, nursery and floral products under uniform standards prescribed by the Commissioner of Agriculture and Consumer Services, or devoted to and meets the requirements and qualifications for payments or other compensation pursuant to a soil conservation program under an agreement with an agency of the federal government. Requires five acres minimum in horticultural use and a five year history of horticultural use.

Forest Use: When devoted to tree growth in such quantity and so spaced and maintained as to constitute a forest area under standards prescribed by the State Forester. Requires 20 acres minimum in forest use.

Open-Space Use: Real estate devoted to open-space use shall mean real estate used to provide or preserved for park or recreational purposes, conservation of land or other natural resources, floodways, historic or scenic purposes, or assisting in the shaping of the character, direction, and timing of community development or for the public interest and consistent with the local land-use plan under uniform standards prescribed by the Director of the Department of Conservation and Historic Resources. Requires five acres minimum in open space use and execution of a open space agreement.

Land Owner Obligations for Land Use Assessment

Applications: Applications for taxation on the basis of a land use assessment are accepted by the Real Estate Assessor’s office from October 1 through November 2 of each year and are mailed out upon request of the property owner. Properties must meet criteria as directed by Virginia Code §58.1-3230, includes minimum acreage requirements of 5 acres for agricultural, horticultural and open space, and 20 acres for timberland.

New applications are accepted from October 1 through November 2, effective for the upcoming fiscal tax year as set forth by the Code of Virginia §58.1-3234. The application fee is $10.00. Applications received from November 3 through December 31 will be charged a late fee of $3.00 per day for each application plus the original application fee. All owners of the property are required to sign the application (3 copies) and a certification of use form. The certification form must be notarized. Faxed and electronic applications are not accepted.

Revalidation: The Code of Virginia §58.1-3234 requires property owners to revalidate annually, any previously approved application with the Real Estate Assessor. Revalidation forms are mailed to the property owner on October 1 of each year. The revalidation forms are accepted from October through December 5, at no cost. Revalidation forms will be accepted December 6 through December 31, by paying a late fee of $3.00 per day for each revalidation form. Revalidation forms are NOT accepted after December 31.

All owners are required to sign the annual revalidation form; faxed or electronic copies are not accepted. Failure to revalidate will result in the removal of the property from the land use assessment program. The property will then be taxed based on the fair market assessed value.

Change in Use or Zoning: If the use of the property is changed to a non-qualifying use or if the property is rezoned to a more intensive use, this change must be reported to the Real Estate Assessor within 60 days after such change occurs. An amended application must be filed if the acreage changes.

Roll-back Taxes: When real estate that has been taxed according to special assessment changes to a non-qualifying use (change in use), a rollback tax will be applied. As of July 1, 1988, rollback taxes are also applied when property, at the request of the owner or agent, is rezoned to a more intensive use (zoning). If a parcel is subdivided or a split-off parcel occurs (subdivision) rollback taxes will be applied when the parcels affected do not meet the land use qualifications.

Rollback tax is equal to the difference between the use value assessment tax and tax on the fair market value, for the present and each of the five most recent complete tax years including simple interest.

Real Estate Taxes: Property shall be removed from the land use assessment program if delinquent taxes are not paid by June 1 of the year following the year in which due.

Questions and Answers

What is the land use assessment program?
A tax deferral program developed under a state law that permits localities to adopt a program of special assessments for agricultural, horticultural, forest and open-space lands..

What is the purpose of this program?
The purpose is to encourage the preservation and beneficial use of real estate in order to assure a readily available source of agricultural, horticultural, and forest products and to provide for open-space preservation.

How will this program save me money?
Qualifying properties are taxed based on the “use” value assessment, rather than the fair market value assessment.

In order to qualify for a land use assessment is it mandatory to receive income from the use of my property?
Yes, the application process requires property owners to certify the income earned from agricultural and horticultural use of the property.

How will my property qualify for a special use value assessment?
When a parcel meets the criteria set by the Uniform Standards of the Virginia land use laws. Qualifying uses under the agricultural and horticultural classification include:

•   The production for sale of:
  • Grain and feed crops
  • Forage crops
  • Bees and apiary products
  • Vegetables
  • Fruits and nuts
  • Commercial sod and seed
  • Tobacco, cotton, and peanuts
  • Dairy animals and dairy products
  • Nursery and floral products
  • Poultry and poultry products
  • Livestock; beef cattle, sheep swine, horses

If I own at least five acres of land and one horse, will this parcel qualify for a land use assessment?
Yes, boarding, training and breeding of horses will qualify, however, horses for the personal use of the owner doesn’t qualify for a land use assessment. All five acres must be devoted to the qualifying use.

What happens when I sell my property? (The entire tract)
As long as the property remains in a ‘qualifying use’ the parcel can remain in the land use assessment program.

Will I have to pay rollback taxes if I sell a portion of my property?
Yes, for an example, subdividing twelve acres into four-three acre lots would result in rollback taxes on the subdivided portion.

If I change the “use” of my property to a non-qualifying use, can the parcel stay in the land use assessment program?
No, the property must be in a continuous qualifying use. The property owner is required to report any change in the use of the property to the Real Estate Assessor within sixty days of when the use changes. At that time, the property will be removed from the program and roll-back taxes may be assessed.