HB 1204 (Hugo) would require that certain property be assessed based on use value rather than fair market value in certain localities meeting specified population growth criteria (Arlington County and Loudoun County) – whether or not the locality had adopted land use value taxation.
This legislation was introduced because of a dispute between the owners of two country clubs and Arlington County over the valuation of their properties. VACo opposed the bill during the session due to the troubling precedent the bill would set. VACo is appreciative of the Governor’s action to veto this legislation.
ACTION REQUIRED – Please encourage your legislators to sustain the Governor’s veto.
KEY POINTS
- This bill sets a bad precedent by interjecting the state into decisions about local land use and tax policy. Adopting land use value taxation has always been, and should remain, a local decision, not a mandate by the General Assembly.
- Although the bill’s applicability is limited now, it will invite property owners in other localities to demand similar favorable tax treatment in the future.
- By having the General Assembly intercede in a dispute over local property valuation, the bill would override the existing process created in statute for property owners to appeal assessments, which allows for taxpayers to appeal to the local assessor or Commissioner of the Revenue, the local Board of Equalization, and Circuit Court.
KEY CONTACTS
VACo Contact: Katie Boyle