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September 26, 2023
<br />
<br />FINDINGS
<br />
<br />The current and previous Open Space agreements provided to me meet the
<br />requirements promulgated in Article 4 of the Code of Virginia to qualify the subject
<br />property for Use Value Assessment.
<br />
<br />Additionally, the City properly enacted a local use value ordinance as required by§ 58.1-
<br />3231. An undated Memorandum from the City Attorney to the City Council regarding
<br />the Legality of the Open Space Agreement that was provided to me fully outlines the
<br />Constitutional and statutory authority the City followed in this process.
<br />
<br />Upon application, and subsequent revalidation as may be required locally, the subject
<br />property would qualify for Use Value assessment unless the Real Estate Assessor
<br />determined otherwise.§ 58.1-3236 of the Code of Virginia requires the Assessor to
<br />determine the taxable value by considering oniy those indicia of value applicable to the
<br />qualifying use of the subject property. The Assessor must also value the subject
<br />property at fair market value using the same methods and rates as applied to other
<br />similar real estate in the taxing jurisdiction. The land book shall show both the use value
<br />and fair market value.
<br />
<br />The process for valuation and taxation of a property that qualifies for the Use Value
<br />program follows:
<br />
<br />l. The Assessor confirms the subject property meets the qualifying standards
<br />promulgated within the Code of Virginia and the requirements adopted by the locality.
<br />2. The Assessor values the subject property at its fair market value.
<br />3. The Assessor values the portion(s) of the subject property that meet the
<br />qualifying use standards with the appropriate locally adopted use value unit rate(s).
<br />4. The Assessor calculates the taxable value and deferred value.
<br />5. The Commissioner of the Revenue or·Director of Finarice applies the real estate
<br />tax rate adopted by the governing body to the taxable use value to determine the
<br />appropriate tax levy.
<br />
<br />Pursuant to the authority found in§ 58.1-3237, a locality may recapture deferred taxes
<br />for the current tax year plus the five previous tax years through a rollback if the subject
<br />property changes from a qualifying to a non-qualifying use.§ 58.1-3236 (D) requires that
<br />both the fair market and use values be included on the land book.
<br />
<br />Chapter 32 of Title 58.1, Article 4 of the Code of Virginia provides for tax deferment of
<br />certain properties based upon the subject property meeting specific qualifying
<br />standards. However, this program does not provide for a tax exemption. As summarized
<br />earlier, the deferment of taxes remains as long as the qualifying use continues. Relief
<br />of previously deferred taxes only occurs after the current tax year plus the previous five
<br />tax years.
<br />
<br />The following chart was included in the documents provided to me:
<br />
<br />OPEN SPACE MAP-PARCEL 0612-0010
<br />YEAR TAXES RATE ABATED TAXES EST. MARKET VALUE
<br />2003 $58,454.56 $1.42 $58,454.56 $5,025,430
<br />2004 84,470.04 1.42 84,470.04 5,446,330
<br />2005 91,747.28 1.45 91,747.28 5,839,170
<br />2006 112,718.00 1.44 112,718.00 7,265,170
<br />2007 119,093.56 1.36 119,093.56 8,127,320
<br />2008 130,553.40 1.26 130,553.40 9,118,670
<br />2009 133,790.28 1.21 133,790.28 9,118,670
<br />2010 133,790.28 1.24 133,790.28 9,118,670
<br />2011 137,027.12 1.24 137,027.12 9,118,670
<br />2012 136,620.24 1.24 136,620.24 9,118,670
<br />2013 136,620.24 1.27 136,620.24 9,118,670
<br />2014 136,620.24 1.27 136,620.24 9,118,670
<br />2015 139,847.48 1.27 139,847.48 9,118,670
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