Posted on March 12, 2018
The Commonwealth of Virginia has approved several legislative changes relating to property taxes set for a July 1, 2018, effective date. The highlights are listed below and pertain to:
Located in the Piedmont region of the Commonwealth of Virginia and seated perfectly at the foothills of the Blue Ridge Mountains, Bedford County is home to abundant natural beauty and historical sites.
As a property owner in Bedford County, you should know with legislation effective July 1, 2018, Bedford County is authorized to complete a general reassessment of real property every five or six years instead of every four years thereby keeping values constant for another year or two before revaluation. (L. 2018, H124 (c.24))
Computer equipment and peripheral equipment used in a data center will now have a separate classification of tangible personal property for valuation purposes with the July 1, 2018 (L. 2018, H828 (c.28)) legislation. This type of equipment will be valued by a percentage of first cost or such method as may be reasonably expected to result in a fair market value.
Single Member LLC
As of July 1, 2018, single member limited liability companies whose sole member is a nonprofit is eligible to be considered for a property tax exemption by a county, city, or town just like other nonprofit organizations. It is important to note that the property must be used for charitable, religious, patriotic, benevolent, historical, cultural, or public park or playground purposes. (L. 2018, H894 (c. 29))
Effective July 1, 2018, any wholesaler who has merchants’ capital reported as inventory and located in a building that has at least 100,000 square feet all of which (at least 100,000 square feet) is used solely to store inventory will be eligible to qualify for a separate classification for local property taxation purposes resulting in a lower tax rate. (L. 2018, H119 (c. 23))
With July 1, 2018, legislation, agricultural products will be defined as livestock, aquaculture, poultry, horticultural, floricultural, viticulture, silviculture, and other farm crops for the purpose of classification of tangible personal property taxation. (L. 2018, H1022 (c. 30))
Tips for the Taxpayer
Virginia property owners and taxpayers should review their operations to determine if they qualify for any of the upcoming legislative changes related to property taxation before they become effective July 1, 2018. Tax benefits may exist and result in savings to the property owner. Consider the qualifications and stay updated with the latest legislation and future notices. If questions still exist, consult a tax professional or government official for clarity and expertise.
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