Minutes 09/26/2023 - Laserfiche WebLink

Home Browse Search

September 26, 2023 • The City deemed that it was in the public interest that the property should be preserved for open-space use and meet the definitions of such as prescribed in Article 4 of the Code of Virginia (§ 58.1-3230) and the uniform standards prescribed by the Director of the Department of Conservation and Recreation pursuant to the authority set out in§ 58.1-3240. • The provisions of the agreements meet the requirements and standards prescribed under§ 58.1-3233 for Open Space classification. • The City is willing to extend the tax for the property based on Use Value Assessment. Article 4, § 58.1-3233 requires that the local assessing official determine that the subject property meets the criteria set forth in§ 58.1-3230 prior to extending Use Value to the subject property. The Portsmouth City Code§ 35-62 defines the assessing official, for the purposes of performing a general reassessment of real property, be the Real Estate Assessor appointed by City Council. Article 4, § 58.1-3231, requires a locality to adopt an ordinance to provide for the use value assessment and taxation. The Portsmouth City Code sections§§ 35-101 through 35-105 meet this requirement. I also reviewed the following additional documents you provided: • An undated informal report that included a summary of the property and background information regarding taxable status; calculated taxes since 2003; and two letters from staff and a previous City Assessor to the property owner. • An undated memo from the City Attorney's office regarding the Legality of the Open Space Agreement. • A Deed of Bargain and Sale and Assumption dated December 20, 2019, transferring ownership of the subject property. • Land Use Applications (Forms LU-1) from tax years 1978-79 through 2007-08. • Four recorded Open Space Agreements (referenced above). The Virginia Constitution, Article X, Section 2 provides that the General Assembly may define and classify real estate devoted to agricultural, horticultural, forest, or open space uses, and may by general law authorize any county, city, town, or regional government to allow deferral of, or relief from, portions of taxes otherwise payable on such real estate. The General Assembly has adopted Chapter 32 of Title 58.1, Article 4 of the Code of Virginia that provides for the deferral of real estate taxes on property that meet certain agricultural, horticultural, forestry, or open space criteria. Article 4, § 58.1-3233 of the Code of Virginia provides the qualifying standards for Open Space use and the requirements should be strictly interpreted. Eligible land is valued and taxed based on its use versus being valued and taxed at fair market value. The deferred tax is the difference between the annual value/tax based on fair market_value and the annual value/tax based on the use value. The deferral of taxes continues as long as the qualified use continues. If the owner changes to a non qualifying use, rezones to a more intensive use, or divides the subject property into a subdivision of lots, the locality may levy rollback taxes to recapture deferred taxes. The calculation of rollback taxes is the difference between land use value and fair market value for the current year, as well as the previous five tax years. Deferred taxes beyond the current tax year plus the previous five tax years are relieved. This response will only address the factual data provided to me. The knowledge and intent of the parties who managed the use value program and calculated the taxable value and the taxes levied to the property owner is outside the scope of Virginia Tax's review.