City of Fredericksburg, VA ARTICLE IV Real Estate Taxes

§ 70-91 General reassessment of real estate to be conducted every four years.

[Code 1991, § 17-31.1; Ord. No. 06-35, 10-10-2006; Ord. No. 10-11, 5-25-2010]

Beginning July 1, 2010, all real estate in the City not exempted from taxation by the Virginia Constitution or general law and not assessable for taxation by the state corporation commission shall be assessed by the City at four years intervals. Such reassessment shall commence as soon as practicable after July 1, 2012, and every four years thereafter. The City Council shall, by ordinance, provide the manner of such assessment and, to that end, may appoint a professional real estate assessor certified by the state department of taxation or a board of assessors, and shall prescribe the duties and terms of office of such assessor or board of assessors.

§ 70-92 Effective date of real estate reassessment.

[Code 1991, § 17-32; Ord. No. 00-04, 2-22-2000]

All taxable real estate shall be assessed as of July 1 of each year, any other provision of law, general or special, to the contrary notwithstanding.

§ 70-92.1 Exemptions for designated real property owned by certain nonprofit organizations.

[Ord. No. 04-12, 4-27-2004; Ord. No. 09-45, 10-13-2009; Ord. No. 10-14, 6-22-2010]

A. The City Council may by designation exempt from taxation any real property owned by a nonprofit organization that uses such property solely for religious, charitable, patriotic, historical, benevolent, cultural, or public park or playground purposes. No exemption shall be granted to any organization except under the following conditions:

(1) The organization shall have no rule, regulation, policy or practice that unlawfully discriminates on the basis of religious conviction, race, color, sex, or national origin;

(2) No personal property of the organization shall be exempt from local taxation;

(3) The organization must currently own real property in the City;

(4) The property for which the exemption is requested shall not be occupied or used by any person as a dwelling or for other personal use, except for property operated by a public university exclusively for student housing; and

(5) The exemption shall only apply to the specific parcel(of land for which the exemption is sought and not to any property that may be acquired in the future by such organization.

B. Any organization seeking a real property tax exemption under this section shall submit an application to the City Manager for the specific parcel(s) of property for which it seeks an exemption in accordance with an application form and written procedure developed by the City Manager. Such application shall, at a minimum, include certifications, responses, and documentation, under oath, to the following questions:

(1) Does the organization have any rule, regulation, policy, or practice that unlawfully discriminates on the basis of religious conviction, race, color, sex, or national origin?

(2) Is the organization exempt from taxation pursuant to § 501C(3) of the Internal Revenue Code of 1954?

(3) Does the organization hold a current annual alcoholic beverage license from the Virginia Alcoholic Beverage Control Board for serving alcoholic beverages on such property?

(4) What compensation is paid to each Director, officer, and employee of the organization and is such compensation in excess of a reasonable allowance for salary or other compensation for personal services which such Director, officer, or employee actually renders?

(5) Does any part of the net earnings of such organization inure to the benefit of any individual?

(6) What percentage of the services provided by such organization is generated by funds received from donations, contributions, or local, state or federal grants or funds? For purposes of this subsection, donations shall include the providing of personal services or the contribution of in-kind or other material services.

(7) What specific services does the organization provide for the common good of the public?

(8) What percentage of the activities of the organization involve carrying on propaganda or otherwise attempting to influence legislation? Does the organization participate or intervene in any political campaign on behalf of any candidate for public office?

(9) What is the amount of real property tax actually paid by the organization to the City for the preceding three years on each parcel of property for which the group seeks a tax exemption?

C. Upon receipt of a complete application and an application fee of $300, the City Manager shall consult with the Commissioner of the Revenue and other City departments to determine whether the applicant meets the minimum requirements of this section, is in compliance with all City ordinances and regulations, and is delinquent in the payment of any City taxes, fees, or other charges. Upon the completion of such review, the City Manager shall cause a notice of a public hearing to be published at least once in a newspaper of general circulation in the City. The notice shall include the assessed value of the real property for which the exemption is requested as well as the property taxes assessed against such property. The public hearing shall not be held until at least five days after the notice is published. The City Manager shall apply the proceeds of the application fee to pay the cost of publication.

D. The City Council shall consider such application following the public hearing at which the public shall have an opportunity to be heard. The City Council shall consider each of the questions set forth in Subsection B of this section, as well as any other criteria, facts, or circumstances that the City Council deems pertinent, before adopting an ordinance granting the exemption. The ordinance shall state the specific use on which the exemption is based. Continuation of the exemption shall be contingent on the continued use of the property in accordance with the purpose for which the organization is designated.

E. Every organization whose real property has been designated tax exempt pursuant to this section shall be required to file triennially an application with the commissioner of revenue in order to retain the tax exempt status of the property.

F. The commissioner of revenue shall give each organization 60 days' notice of the due date of the application. If the organization certifies that the ownership and the use of the property are the same as when the exemption was initially granted, and the financial status of the organization is substantially the same, the commissioner of revenue may accept the certification; however, the commissioner of revenue may require a more complete application including one identical to the initial application for tax exempt designation. The application shall be filed within the next 60 days preceding the tax year for which the exemption is sought to be retained.

G. Failure to timely file the required triennial application shall result in termination of the exemption.

H. The commissioner of revenue shall review the triennial application and provided the ownership and use of the property remains the same as when the exemption was initially approved, the exempt status shall continue.

I. The Commissioner of the Revenue shall have the authority to request any relevant information, records, or other data from any charitable organization seeking a real estate tax exemption under this section or benefitting from any such exemption previously granted hereunder, to conduct audits of such organizations, and to take whatever measures he deems necessary and that are authorized by general law to ensure compliance with the purpose and intent of this section.

§ 70-92.2 Appeals to the board of equalization.

[Ord. No. 03-05, 3-25-2003]

A. The City board of equalization, appointed by the Circuit Court in accordance with state law, shall sit at and for such time or times as may be necessary to discharge its duties. Any property owner or lessee seeking to appeal the real estate assessment of his property that has been established by the City assessor shall file such appeal no later than October 15 of the year in which the assessment is made or 30 days after the termination of the date(s) set by the assessor to hear objections to the assessments, whichever is later. Any appeal filed subsequent to such date shall not be heard. If no appeals are received by such date, the board of equalization shall be deemed to have discharged its duties.

B. All appeals filed with the board of equalization shall be finally disposed of by the board not later than December 31 of the year in which the assessment is made.

C. The two deadlines set forth in this section shall be clearly stated in the notice of assessment mailed to each property owner in the City.

§ 70-93 Date when due and payable.

[Ord. No. 00-04, 2-22-2000; 3-28-2023 by Ord. No. 23-04]

City taxes levied on real property for each year shall be due and payable in two equal semiannual installments, with the first half of the total tax due on December 5 and the second half on June 5 of the following calendar year.

§ 70-94 Exemption for certain elderly and disabled persons.

[Code 1991, § 17-34.1; Ord. No. 03-03, 2-11-2003; Ord. No. 06-05, 2-29-2006; Ord. No. 07-11, 4-24-2007; 5-14-2019 by Ord. No. 19-21; 9-28-2021 by Ord. No. 21-25; 5-9-2023 by Ord. No. 23-11[1]]

A. Authorized. An exemption from taxation by the City of real estate owned by and occupied as the sole dwelling of anyone at least 65 years of age or anyone permanently and totally disabled, as defined in Subsection E of this section, is provided upon the conditions and in the amounts prescribed by this section. Persons qualifying for such exemption are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial worth.

B. Conditions. The exemption provided by this section shall be subject to the following restrictions, conditions and qualifications:

(1) The title to the real estate for which such exemption is claimed must, on June 30 immediately preceding the tax year for which the exemption is claimed, be owned or partially owned by the person claiming the exemption.

(2) The real estate for which the exemption is claimed must be occupied as the sole dwelling of the person claiming the exemption.

(3) The person claiming the exemption must, on June 30 immediately preceding the tax year for which the exemption is claimed, be either 65 years of age or older or permanently and totally disabled, as defined by Code of Virginia, § 58.1-3217.

(4) The total combined income received from all sources during the preceding calendar year by owners of the real estate who use it as their sole dwelling and owners' relatives who live in the dwelling shall not exceed $60,000, provided that any amount up to $10,000 of income of each relative who is not the spouse of an owner living in the dwelling shall be excluded. If a person otherwise meeting the qualifications of this section can prove by clear and convincing evidence that the person's physical or mental health has deteriorated to the point that the only alternative to residing permanently in a hospital, nursing home, convalescent home, or other facility for physical or mental care is to have a relative move in and provide care for the person, and if a relative does then move in for that purpose, then none of the income of the relative or of the relative's spouse shall be counted towards the income limits set forth in this subsection, provided the owner of the residence has not transferred assets in excess of $5,000 without adequate consideration within a three-year period prior to or after the relative moves into such residence.

(5) For eligible persons with a total combined income, as defined in Subsection B(4) of this section, of not more than $40,000, the amount of exemption from real estate tax for any taxable year shall be equal to their real estate tax liability.

(6) For eligible persons with a total combined income, as defined in Subsection B(4) of this section, of more than $40,000 but equal to or less than $50,000, the amount of exemption from real estate tax for any taxable year shall be 80% of their real estate tax liability.

(7) For eligible persons with a total combined income, as defined in Subsection B(4) of this section, of more than $50,000 but equal to or less than $60,000, the amount of exemption from real estate tax for any taxable year shall be 60% of their real estate tax liability.

(8) The maximum annual exemption of any property shall be $3,000.

(9) The net combined financial worth, including equitable interests, as of December 31 of the immediately preceding calendar year, of the owners and of the spouse of any owner, excluding the value of the dwelling and the land, not exceeding one acre, upon which it is situated shall not exceed $300,000. The value of household furnishings in the dwelling, including furniture, household appliances and other items typically used in a home, shall be excluded.

(10) A dwelling jointly owned by a husband and wife may qualify if either spouse is over 65 years of age or is permanently and totally disabled.

C. Dwelling. The fact that persons who are otherwise qualified for tax exemption pursuant to this section are residing in hospitals, nursing homes, convalescent homes or other facilities for physical or mental care for extended periods of time shall not be construed to mean that the real estate for which tax exemption is sought does not continue to be the sole dwelling of such persons during such extended periods or other residence so long as such real estate is not used by or leased to others for consideration.

D. Affidavit.

(1) A person claiming such exemption shall file annually with the Commissioner of the Revenue, on forms to be supplied by the City Manager, an affidavit setting forth:

(a) The names of the related persons occupying such real estate;

(b) Certification that the total combined net worth, including equitable interests and the combined income from all sources, of the persons specified in Subsection B of this section does not exceed the limits set forth in that subsection; and

(c) Such other relevant information as the City Manager may prescribe.

(2) In lieu of the annual affidavit filing requirement, the Commissioner of the Revenue may allow the filing of the affidavit on a three-year cycle with an annual certification by the taxpayer that no information contained on the last preceding affidavit filed has changed to violate the limitations and conditions provided therein. Such affidavit or certification shall be filed not later than May 1 of each year.

E. Certification of disability. If a person claiming such exemption is under 65 years of age, such affidavit shall have attached thereto a certification by the Veterans Administration or the Railroad Retirement Board, or, if such person is not eligible for certification by one of these agencies, a sworn affidavit by two medical doctors licensed to practice medicine in the commonwealth, to the effect that the person is permanently and totally disabled, as defined in Code of Virginia, § 58.1-3217. The affidavit of at least one of the doctors shall be based upon a physical examination of the person by such doctor. The affidavit of one of the doctors may be based upon medical information contained in the records of the civil service commission which is relevant to the standards for determining permanent and total disability as defined in Code of Virginia, § 58.1-3217.

F. Duties of Commissioner of the Revenue. The Commissioner of the Revenue shall:

(1) Have the authority to waive the filing deadline set forth in this section for a first-time applicant or in hardship cases.

(2) Make any other reasonably necessary inquiry of persons seeking such exemption, requiring answers under oath, to determine qualification as specified in this section, including qualification as permanently and totally disabled, as defined in this section.

(3) Have the authority to require any such person to produce certified tax returns to establish the income or financial worth of any applicant for tax relief.

G. Duties of treasurer. The treasurer shall enclose written notices in each real estate tax bill of the terms and conditions of this section. The treasurer shall also employ any other reasonable means necessary to notify City residents about the terms and conditions of this section.

H. Change in eligibility. Changes in income, financial worth, ownership of property or other factors occurring during the taxable year for which an affidavit or certification is filed and having the effect of exceeding or violating the limitations and conditions provided in this section shall nullify any deferral or exemption for the remainder of the current taxable year and the taxable year immediately following. However, a change in ownership to a spouse, when such change results solely from the death of the qualifying individual, shall result in a prorated deferral or exemption for the then-current taxable year. Such prorated portion shall be determined by multiplying the amount of the deferral or exemption by a fraction wherein the number of complete months of the year such property was eligible for such deferral or exemption is the numerator and the number "12" is the denominator.

I. Deferral of certain non-exempt taxes. Any person qualifying for and receiving the exemption set forth in this section may defer the remaining real estate tax due on such property in excess of the amount entitled to exemption. The accumulated amount of taxes deferred pursuant to this subsection shall be paid, plus interest of 8% per annum on any amount so deferred, to the City by the vendor upon the sale of the dwelling or from the estate of the decedent within one year after the death of the last owner thereof who qualified for such tax deferral. Such deferred taxes shall constitute a lien upon the real estate as if they had been assessed without regard to the deferral permitted by this subsection. Any such lien shall, to the extent that it exceeds in the aggregate 10% of the price for which such real estate may be sold, be inferior to all other liens of record.

J. Definition. For purposes of this section, the term "income" shall mean total gross income from all sources, without regard to whether a tax return is actually filed. Income shall not include life insurance benefits or receipts from borrowing or other debt.

[1] Editor's Note: This ordinance provided an effective date of 7-1-2023.

§ 70-95 Service charge on certain tax-exempt real property — Generally.

[Code 1991, § 17-35]

A. Notwithstanding the provisions of Code of Virginia, § 58.1-3600 et seq., relating to exemption of property from taxation, a service charge is hereby imposed upon the owners of real estate situated within the City which is exempted from property taxation under Code of Virginia, § 58.1-3606A(1), except property owned by the commonwealth, and Code of Virginia, § 58.1-3606A(3), A(4) and A(7), and Code of Virginia, § 58.1-3607A(2) - A(7), and all sections of Code of Virginia, §§ 58.1-3609 et seq. and 58.1-3650 et seq.

B. Notwithstanding the provisions of the Subsection A of this section, a service charge is hereby imposed upon all faculty and staff housing of state educational institutions located within the City.

C. The Commissioner of the Revenue shall, prior to imposing the service charge provided in this section, publish and list all exempt real estate in the land books of the City, in the same manner as taxable real estate is listed.

§ 70-96 Same — Valuation of property; calculation of service charge.

[Code 1991, § 17-36]

A. The service charge authorized in § 70-95 shall be based on the assessed value of the tax-exempt real estate and the amount which the City expended, in the year preceding the year in which such charge is assessed, for the purpose of furnishing police and fire protection and for collection and disposal of refuse. The cost of public school education shall be included in such amount in determining the service charge imposed on faculty and staff housing of an educational institution. Any amount received from federal or state grants specifically designated for such purposes and assistance provided to localities pursuant to Code of Virginia, § 14.1-84.1 et seq., shall not be considered in determining the cost of providing such services for the real estate. The expenditures for services not provided for certain real estate shall not be considered in the calculation of the service charge for such real estate, nor shall such expenditures be considered when a service is currently funded by another service charge.

B. The service charge rate shall be determined by dividing the expenditures determined pursuant to Subsection A of this section by the assessed fair market value, expressed in hundreds of dollars, of all real estate located within the City, including nontaxable property. The resulting rate shall then be applied to the assessed value of the tax-exempt property.

C. Real estate owned by the United States government or any of its instrumentalities shall not be included in the assessed value of all property within the City.

D. For the purposes of this section, artistic and historical significance shall not be taken into account in the valuation of exempt real estate.

E. In no event shall the service charge exceed 20% of the real estate tax rate of the City or 50% in the case of faculty and staff housing of an educational institution.

§ 70-97 Same — Exemptions from service charge.

[Code 1991, § 17-37]

A. Buildings and the land they actually occupy, together with additional adjacent land reasonably necessary for the convenient use of any such building, located within the City shall be exempt from the service charge imposed under § 70-95A if the buildings are:

(1) Lawfully owned and held by churches or religious bodies and wholly and exclusively used for religious worship or for the residence of the minister of any church or religious body or for use as a religious convent, nunnery, monastery, cloister or abbey; or

(2) Used or operated exclusively for nonprofit private educational or charitable purposes, other than faculty or staff housing of any such educational institution.

B. The service charge shall not be applicable to public roadways or property held for future construction of such roadways.

C. Except as otherwise provided in this article, the following classes of organizations are hereby exempted from the service charge imposed pursuant to § 70-95:

(1) Nonprofit private or public burial grounds or cemeteries.

(2) Buildings and the land they actually occupy, and the furniture and furnishings therein, owned by churches or religious bodies and exclusively occupied or used for religious worship or for the residence of the minister of any church or religious body, and such additional adjacent land reasonably necessary for the convenient use of any such building.

(3) Property belonging to and actually and exclusively occupied and used by the Young Men's Christian Association and similar religious associations, including religious mission boards and associations, orphanages or other asylums, reformatories, hospitals and nunneries, conducted not for profit but exclusively as charities, including hospitals operated by nonstock corporations not organized or conducted for profit but which may charge persons able to pay in whole or in part for their care and treatment.

(4) Property owned by public libraries, law libraries of local bar associations when they are used or available for use by a state court or the judge thereof, medical libraries of local medical associations when they are used or available for use by state health officials, incorporated colleges or other institutions of learning not conducted for profit. This subsection shall apply only to property primarily used for literary, scientific or educational purposes or purposes incidental thereto and shall not apply to industrial schools which sell their products to other than their own employees or students.

(5) Any other property that is exempted by Code of Virginia, § 58.1-3606 or 58.1-3607, or other law.

§ 70-98 Exemption for certain rehabilitated residential real estate effective for tax year beginning July 1, 1989.

[Code 1991, § 17-39]

A. Real estate that is located wholly within the Old and Historic Fredericksburg District, as defined in Chapter 78,[1] or eligible for listing or listed on the National Register of Historic Places, and which has been substantially rehabilitated for residential use shall be exempt from taxation, subject to the conditions and restrictions set forth in this section. For purposes of this section, real estate shall be deemed to have been substantially rehabilitated when a structure which is no less than 40 years of age has been so improved as to increase the assessed value of the structure by no less than 40%, without increasing the total square footage of such structure by more than 15%. Multifamily residential units which have been substantially rehabilitated by replacement for multifamily use shall be eligible for the tax exemption provided by this section so long as such replacement structures do not exceed the total square footage of the replaced structures by more than 30%.

[1] Editor's Note: See now Ch. 72, Unified Development Ordinance.

B. The tax exemption provided by this section shall be effective for the tax year beginning on July 1, 1989.

C. The tax exemption provided by this section shall be in an amount equal to a declining percentage of the increase in assessed value resulting from the rehabilitation of the residential structure, as determined by the Commissioner of the Revenue. This amount shall only be applicable to any subsequent assessment or reassessment. The exemption shall commence on July 1 of the year following completion of the rehabilitation and shall run with the real estate for a period of six years as follows:

	Year	Percentage of Increase in Assessed Value
	1	100%
	2	83%
	3	66%
	4	49%
	5	32%
	6	16%

D. Nothing in this section shall be construed as to permit the Commissioner of the Revenue to list upon the land book any reduced value due to the exemption provided in this section.

E. Any person seeking the tax exemption provided by this section shall file an application with the Commissioner of the Revenue prior to the commencement of rehabilitation. A fee of $50 for processing an application requesting such exemption shall be collected by the Commissioner of the Revenue. No property shall be eligible for such exemption unless the appropriate building permits have been acquired and the Commissioner of the Revenue has verified that the rehabilitation indicated on the application has been completed.

F. The Commissioner of the Revenue or his designee shall physically inspect and appraise the property at the time the application for this exemption is submitted, prior to the commencement of rehabilitation, for the purpose of determining its fair market value at that time.

§ 70-98.1 Exemption for certain rehabilitated residential real estate effective for tax year beginning July 1, 2007.

[Ord. No. 07-36, 8-14-2007]

A. Real estate that is located wholly within the Old and Historic Fredericksburg District, as defined in Chapter 78,[1] or eligible for listing or listed on the National Register of Historic Places, and which has been substantially rehabilitated for residential use shall be exempt from taxation, subject to the conditions and restrictions set forth in this section. For purposes of this section, real estate shall be deemed to have been substantially rehabilitated when a structure which is no less than 40 years of age has been so improved as to increase the assessed value of the structure by no less than 20%, without increasing the total square footage of such structure by more than 15%. Multifamily residential units which have been substantially rehabilitated by replacement for multifamily use shall be eligible for the tax exemption provided by this section so long as such replacement structures do not exceed the total square footage of the replaced structures by more than 30%.

[1] Editor's Note: See now Ch. 72, Unified Development Ordinance.

B. The tax exemption provided by this section shall be effective for any application received on or after July 1, 2007.

C. The tax exemption provided by this section shall be in an amount equal to a declining percentage of the increase in assessed value resulting from the rehabilitation of the residential structure, as determined by the Commissioner of the Revenue. This amount shall only be applicable to any subsequent assessment or reassessment. The exemption shall commence on July 1 of the year following completion of the rehabilitation and shall run with the real estate for a period of seven years as follows:

	Year	Percentage of Increase in Assessed Value
	1	100%
	2	100%
	3	83%
	4	66%
	5	49%
	6	32%
	7	16%

D. Nothing in this section shall be construed as to permit the Commissioner of the Revenue to list upon the land book any reduced value due to the exemption provided in this section.

E. Any person seeking the tax exemption provided by this section shall file an application with the Commissioner of the Revenue prior to the commencement of rehabilitation. A fee of $50 for processing an application requesting such exemption shall be collected by the Commissioner of the Revenue. No property shall be eligible for such exemption unless the appropriate building permits have been acquired and the Commissioner of the Revenue has verified that the rehabilitation indicated on the application has been completed.

F. The Commissioner of the Revenue or her designee shall physically inspect and appraise the property at the time of the application for this exemption is submitted, prior to the commencement of rehabilitation, for the purpose of determining its fair market value at that time.

§ 70-99 Exemption for certain rehabilitated commercial and industrial real estate effective for tax year beginning July 1, 1989.

[Code 1991, § 17-41; Ord. No. 05-08, 4-26-2005]

A. Real estate in the City which has been substantially rehabilitated for commercial or industrial use shall be exempt from taxation, subject to the conditions and restrictions set forth in this section. For purposes of this section, real estate shall be deemed to have been substantially rehabilitated when a structure which is no less than 40 years of age has been so improved as to increase the assessed value of the structure by no less than 60%, without increasing the total square footage of such structure by more than 15%.

B. In calculating the pre-rehabilitation square footage of a structure, the commissioner of revenue shall include basements, attics, and attached garages. The conversion of attached, roofed shipping docks, loading docks, and structural canopies to habitable space shall not be included in the calculation of post-rehabilitation structure area, so long as the converted structure is at least 40 years old, and so long as the area of the converted structure is less than 50% of the area of the principal structure.

C. In order to qualify for the partial tax exemption, rehabilitation shall be completed within two years of the date of tax exemption application.

D. Nothing in this section shall be construed as to permit the Commissioner of the Revenue to list upon the land book any reduced value due to the exemption provided in this section.

E. Any person seeking the tax exemption provided by this section shall file an application with the Commissioner of the Revenue prior to the commencement of rehabilitation. A fee of $150 for processing an application requesting the exemption provided by this section shall be collected by the Commissioner of the Revenue. No property shall be eligible for such exemption unless the appropriate building permits have been acquired and the Commissioner of the Revenue has verified that the rehabilitation indicated on the application has been completed.

F. Where rehabilitation is achieved through demolition and replacement of an existing structure, the exemption provided in this section shall not apply when any structure demolished is a registered state landmark or is determined by the state department of conservation and historic resources to contribute to the significance of a registered historic district.

G. The Commissioner of the Revenue or his designee shall physically inspect and appraise the property at the time the application for this exemption is submitted, prior to commencement of rehabilitation, for the purpose of determining its fair market value at that time.

§ 70-99.1 Exemption for certain rehabilitated commercial and industrial real estate effective for tax year beginning July 1, 2007.

[Ord. No. 07-36, 8-14-2007]

A. Real estate in the City which has been substantially rehabilitated for commercial or industrial use shall be exempt from taxation subject to the conditions and restrictions set forth in this section. For purposes of this section, real estate shall be deemed to have been substantially rehabilitated when a structure which is no less than 40 years of age has been so improved as to increase the assessed value of the structure by no less than 30%, without increasing the total square footage of such structure by more than 15%.

B. In calculating the pre-rehabilitation square footage of a structure, the Commissioner of the Revenue shall include basements, attics, and attached garages. The conversion of attached, roofed shipping docks, loading docks, and structural canopies to habitable space shall not be included in the calculation of post-rehabilitation structure area, so long as the converted structure is at least 40 years old, and so long as the area of the converted structure is less than 50% of the area of the principal structure.

C. In order to qualify for the partial tax exemption, rehabilitation shall be completed within two years of the date of tax exemption application.

D. Nothing in this section shall be construed as to permit the Commissioner of the Revenue to list upon the land book any reduced value due to the exemption provided in this section.

E. Any person seeking the tax exemption provided by this section shall file an application with the Commissioner of the Revenue prior to the commencement of rehabilitation. A fee of $150 for processing an application requesting the exemption provided by this section shall be collected by the Commissioner of the Revenue. No property shall be eligible for such exemption unless the appropriate building permits have been acquired and the Commissioner of the Revenue has verified that the rehabilitation indicated on the application has been completed.

F. Where rehabilitation is achieved through demolition and replacement of an existing structure, the exemption provided in this section shall not apply when any structure demolished is a registered state landmark or is determined by the state department of conservation and historic resources to contribute to the significance of a registered historic district.

G. The Commissioner of the Revenue or her designee shall physically inspect and appraise the property at the time of the application for this exemption is submitted, prior to the commencement of rehabilitation, for the purpose of determining its fair market value at that time.

H. The tax exemption provided by this section shall be in an amount equal to a declining percentage of the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure, as determined by the Commissioner of the Revenue. This amount shall only be applicable to any subsequent assessment or reassessment. The exemption shall commence on July 1 of the year following completion of the rehabilitation and shall run with the real estate for a period of seven years as follows:

	Year	Percentage of Increase in Assessed Value
	1	100%
	2	100%
	3	83%
	4	66%
	5	49%
	6	32%
	7	16%

§ 70-100 Special assessment for land preservation — Generally.

[Code 1991, § 17-42]

A. The City finds that the preservation of real estate devoted to agricultural, horticultural, forest, and open space uses within its boundaries is in the public interest and, having heretofore adopted a land use plan, hereby ordains that such real estate shall be taxed in accordance with the provisions of Code of Virginia, § 58.1-3230 et seq., and this section.

B. The owner of any real estate meeting the criteria set forth in Code of Virginia, §§ 58.1-3230 and 58.1-3233(2), may, at least 60 days before the tax year for which such taxation is sought, apply to the Commissioner of the Revenue for the classification, assessment, and taxation of such property for the next succeeding tax year on the basis of its use, under the procedures set forth in Code of Virginia, § 58.1-3236. Such application shall be on forms provided by the state tax commissioner and supplied by the Commissioner of the Revenue and shall include such additional schedules, photographs and drawings as may be required by the Commissioner of the Revenue. An application shall be submitted prior to any deadline which is reasonably established by the Commissioner of the Revenue whenever the use or acreage of such land previously approved changes; provided, however, that a property owner may revalidate annually with the City any application previously approved, on forms prepared by the City. An application fee of $25 shall accompany each application. A separate application shall be filed for each parcel on the land book.

C. Promptly upon receipt of any application, the Commissioner of the Revenue shall determine whether the subject property meets the criteria for taxation pursuant to this section. If the Commissioner of the Revenue determines that the subject property does meet such criteria, he shall determine the value of such property for its qualifying use, as well as its fair market value.

D. In determining whether the subject property meets the criteria for agricultural, horticultural, forest or open space use, the commissioner may request an opinion from the Director of the State Department of Conservation and Recreation, the State Forester, or the State Commissioner of Agriculture and Consumer Services.

E. Upon the refusal of the State Commissioner of Agriculture and Consumer Services, the state forester, or the Director of the State Department of Conservation and Recreation to issue an opinion, or in the event of an unfavorable opinion which does not comport with standards set forth by the respective Director, the party aggrieved may seek relief from the circuit court of the City. If the court finds in the aggrieved party's favor, it may issue an order which shall serve in lieu of an opinion for the purposes of this section.

F. The use value and fair market value of any qualifying property shall be placed on the land book before delivery to the treasurer and the tax for the next succeeding tax year shall be extended from the use value.

§ 70-101 Same — Roll-back taxes.

[Code 1991, § 17-43]

A. When real estate qualifies for assessment and taxation on the basis of use under § 70-100 and the use by which it qualified changes to a non-qualifying use, it shall be subject to additional taxes, referred to in this section as "roll-back taxes," determined in accordance with Code of Virginia, § 58.1-3237, as amended.

B. The owner of any real estate liable for such roll-back taxes shall, within 60 days following a change in use, report to the Commissioner of the Revenue, on forms to be prescribed, any change in the use of such property. The Commissioner of the Revenue shall forthwith determine and assess the roll-back tax, and the owner shall pay the roll-back tax to the treasurer within 30 days of assessment. On failure so to report and pay within the periods of time provided for in this subsection, such owner shall be liable for an additional penalty equal to 10% of the amount of the roll-back tax and interest, which penalty shall be collected as part of the tax. In addition to such penalty, such owner shall be subject to punishment for a violation of this section for each month or fraction thereof during which the failure continues.

C. Any person making a material misstatement of fact in any application filed pursuant to this section shall be liable for all taxes in such amounts and at such times as if such property had been assessed on the basis of fair market value as applied to other real estate in the taxing jurisdiction, together with interest and penalties thereon, and he shall be further assessed with an additional penalty of 100% of such unpaid taxes.

D. The provisions of Code of Virginia, § 58.1-1 et seq., applicable to local levies and real estate assessment and taxation shall be applicable to assessments and taxation pursuant to this section, mutatis mutandis, including, without limitation, provisions relating to tax liens, boards of equalization, and the correction of erroneous assessments. For such purposes, the roll-back taxes shall be considered to be deferred real estate taxes.

§ 70-102 Partial-year assessments for new buildings.

[Code 1991, § 17-44]

A. All new buildings substantially completed or fit for use and occupancy prior to May 1 of the year of completion shall be assessed when so completed or fit for use and occupancy, and the Commissioner of the Revenue shall enter in the books the fair market value of such building. No partial assessment as provided in this section shall become effective until information as to the date and amount of such assessment is recorded in the office of the treasurer and made available for public inspection. The total tax on any such new building for that year shall be the sum of:

(1) The tax upon the assessment of the completed building, computed according to the ratio which the portion of the tax year such building is substantially completed or fit for use and occupancy bears to the entire tax year; and

(2) The tax upon the assessment of such new building as it existed on July 1 of that assessment year, computed according to the ratio which the portion of the year such building was not substantially complete or fit for use and occupancy bears to the entire tax year.

B. With respect to any assessment made under this section after March 1 of any year, the penalty for nonpayment by May 15 shall be extended to July 15 of the succeeding tax year.

§ 70-103 Abatement of levies on buildings razed, damaged or destroyed.

[Code 1991, § 17-45]

A. All real estate taxes shall be abated on buildings which are either razed, destroyed, or damaged by a fortuitous happening beyond the control of the owner. No such abatement, however, shall be allowed if the destruction or damage to such building decreases the value thereof by less than $500. No such abatement shall be allowed unless the destruction or damage renders the building unfit for use and occupancy for 30 days or more during the calendar year.

B. The tax on such razed, destroyed, or damaged building shall be computed according to the ratio which the portion of the year the building was fit for use, occupancy, and enjoyment bears to the entire tax year. Applications for such abatement shall be made by or on behalf of the owner of such building within six months of the date on which the building was razed, destroyed, or damaged.

§ 70-104 Special assessment on real property in Central Park Special Service District.

[Code 1991, § 17-50]

A. The Central Park Special Service District, established pursuant to Ordinance No. 97-25 adopted by the City Council on December 9, 1997, shall consist of all that real property more particularly described in such ordinance, as may be hereafter amended from time to time by the City Council. The purpose of such district shall be to widen and extend Cowan Boulevard from U.S. Route 1 across Interstate Route 95 to Carl D. Silver Parkway and to provide such other transportation services and facilities as may be ancillary to the widening and extension of such street.

B. There shall be levied and collected on all real estate located within the boundaries of such service district a special assessment for the six-month period beginning January 1, 1998, and for each fiscal year thereafter, beginning on July 1, 1998, for each $100 of assessed valuation on such property, at a rate to be established by ordinance.

C. All assessments levied pursuant to this section shall be added to the general real estate levy for all real property located within the service district and shall be subject to all other provisions of this chapter, mutatis mutandis.

D. All revenues from the special assessment collected pursuant to this section shall be segregated and expended only for the provision of the transportation facilities and services within the service district, as set forth in this section, as amended.

§ 70-105 Special tax on real property in Fall Hill Special Service District.

[Ord. No. 01-22, 10-23-2001]

A. The Fall Hill Special Service District, established pursuant to Ordinance No. 01-22 adopted by the City Council on October 23, 2001, shall consist of all that real property more particularly described in such ordinance, as may be hereafter amended from time to time by the City Council. The purpose of such district shall be to improve and widen Fall Hill Avenue in the vicinity of its intersection with Carl D. Silver Parkway, to realign such intersection, and to provide more timely transportation facilities and services to the district, as set forth in such ordinance, than would otherwise be available to that portion of the City.

B. There shall be levied and collected on all real estate located within the boundaries of such service district a special tax for the six-month period beginning January 1, 2002, and for each fiscal year thereafter, beginning on July 1, 2002, for each $100 of assessed valuation on such property, at a rate to be established by ordinance.

C. All taxes levied pursuant to this section shall be added to the general real estate levy for all real property located within the service district and shall be subject to all other provisions of this chapter, mutatis mutandis.

D. All revenues from the special tax collected pursuant to this section shall be segregated and expended only to finance the transportation facilities and services within the service district, as set forth in this section.

§ 70-106 Special tax on real property in Celebrate Virginia Special Service District.

[Ord. No. 02-04, 3-26-2002]

A. The Celebrate Virginia Special Service District, established pursuant to Ordinance No. 02-04 and adopted by City Council on March 25, 2002, shall consist of 411.154 acres, more or less, located on the west side of Interstate Route 95 north of Fall Hill Avenue, and more particularly described in said ordinance, which may be hereafter amended from time to time by the City Council. The purpose of such district shall be to facilitate the development of the Celebrate Virginia project by providing additional, more complete, or more timely governmental services for such district than are desired in the City as a whole.

B. There shall be levied and collected on all real estate located within the boundaries of said service district a special tax for each fiscal year, beginning on July 1, 2002, for each $100 of assessed valuation on such property, at a rate to be established by ordinance.

C. All taxes levied pursuant to this section shall be added to the general real estate levy for all real property located within said service district and shall be subject to all other provisions of this chapter, mutatis mutandis.

D. All revenues from the special tax collected pursuant to this section shall be segregated and expended only to finance the governmental services provided within said service district, as set forth in this section.

§ 70-107 Tax exemption for certified solar energy equipment, facilities, and devices.

[Added 5-9-2017 by Ord. No. 17-10]

A. Definitions. The following words, terms and phrases, as used in this section, shall have the following meanings:

CERTIFIED SOLAR ENERGY EQUIPMENT, FACILITIES OR DEVICES

Any property, including real or personal property, equipment, facilities or devices, certified by the Fredericksburg Building Code Official to be designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electric energy.

EQUIPMENT

Certified solar energy equipment, facilities, or devices.

B. Certified solar energy equipment, facilities and devices are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of real or personal property.

C. Owners of real estate to which is attached certified solar energy equipment, facilities or devices are hereby granted an exemption from taxation subject to the limitations and conditions prescribed in this section and by state law. This exemption shall be permitted for a term of five tax years.

D. The criteria for qualification for the tax exemption are as follows:

(1) The title to the property for which exemption is claimed is held, or partially held, by the person claiming the exemption.

(2) The Building Code Official determines that the equipment performs at least one of the functions of collecting, generating, transferring, or storing thermal or electric energy.

(3) The Building Code Official determines that the equipment has been installed in conformity with the Virginia Uniform Statewide Building Code.

(4) The Building Code Official determines that the equipment conforms to the requirements established by the regulations of the Virginia Department of Housing and Community Development.

E. Any person claiming an exemption under this section must file an application with the Building Code Official on forms provided for that purpose. The application must be accompanied by a complete set of plans and specifications of the solar energy equipment, facilities or devices for which exemption is claimed. The application must include a sworn statement or statements of contractors or suppliers attesting to the cost of the purchase and installation of the equipment for which exemption is sought.

F. Upon receipt of an application, the Building Code Official shall determine if the equipment qualifies for the tax exemption. An applicant aggrieved by the decision of the Building Code Official may appeal it to the local Board of Building Code Appeals.

G. If, after examination of the equipment, the Building Code Official determines that the equipment qualifies for the tax exemption, he shall approve and certify the application, and shall forthwith transmit the application to the Commissioner of Revenue.

H. Upon receipt of an approved and certified application, the Commissioner of Revenue shall determine the value of the equipment as provided in Code of Virginia § 58.1-3661D and E. She shall record the total real estate tax, the value of the solar energy tax exemption, and the final amount due in the land book, and report the final amount due to the Treasurer for collection.

I. The exemption shall be effective beginning in the next succeeding tax year.

§ 70-108 through § 70-130. (Reserved)