Virginia Code 58.1-3245.2: Tax increment financing.
A. The governing body of any county, city or town may adopt tax increment financing by passing an ordinance designating a development project area and providing that real estate taxes in the development project area shall be assessed, collected and allocated in the following manner for so long as any obligations or development project cost commitments secured by the Tax Increment Financing Fund, hereinafter authorized, are outstanding and unpaid.
Terms Used In Virginia Code 58.1-3245.2
- Base assessed value: means the assessed value of real estate within a development project area as shown upon the land book records of the local assessing officer on January 1 of the year preceding the effective date of the ordinance creating the development project area. See Virginia Code 58.1-3245
- City: means an independent incorporated community which became a city as provided by law before noon on July 1, 1971, or which has within defined boundaries a population of 5,000 or more and which has become a city as provided by law. See Virginia Code 1-208
- Current assessed value: means the annual assessed value of real estate in a development project area as recorded on the land book records of the local assessing officer. See Virginia Code 58.1-3245
- Development project area: means any area designated for development or redevelopment, including any area designated for a dredging project other than a dredging project for or by the Virginia Port Authority, unless the Virginia Port Authority has an agreement with a local governing body for local financial participation in such a project, in an ordinance passed by the local governing body. See Virginia Code 58.1-3245
- Governing body: means the board of supervisors, council or other legislative body of any county, city or town. See Virginia Code 58.1-3245
- Obligations: means bonds, general obligation bonds and revenue bonds as defined in § Virginia Code 58.1-3245
- real estate: includes lands, tenements and hereditaments, and all rights and appurtenances thereto and interests therein, other than a chattel interest. See Virginia Code 1-219
- Tax increment: means the amount by which the current assessed value of real estate exceeds the base assessed value. See Virginia Code 58.1-3245
- Town: means any existing town or an incorporated community within one or more counties which became a town before noon, July 1, 1971, as provided by law or which has within defined boundaries a population of 1,000 or more and which has become a town as provided by law. See Virginia Code 1-254
1. The local assessing officer shall record in the land book both the base assessed value and the current assessed value of the real estate in the development project area.
2. Real estate taxes attributable to the lower of the current assessed value or base assessed value of real estate located in a development project area shall be allocated by the treasurer or director of finance pursuant to the provisions of this chapter.
3. Real estate taxes attributable to the increased value between the current assessed value of any parcel of real estate and the base assessed value of such real estate shall be allocated by the treasurer or director of finance and paid into a special fund entitled the “Tax Increment Financing Fund” to pay the principal and interest on obligations issued or development project cost commitments entered into to finance the development project costs.
B. The governing body shall hold a public hearing on the need for tax increment financing in the county, city or town prior to adopting a tax increment financing ordinance. Notice of the public hearing shall be published three times in each newspaper of general circulation in such county, city or town, with the first publication appearing no more than 35 days before and the third publication appearing no less than seven days before the hearing. The notice shall include the time, place and purpose of the public hearing, define tax increment financing, indicate the proposed boundaries of the development project area, and propose obligations to be issued to finance the development project area costs.
1988, c. 776; 1990, c. 296; 1994, c. 667; 2023, cc. 506, 507; 2024, cc. 225, 242.