Possible enactment resources

Service Districts
Any locality may create a service district to "provide additional or more complete services of government than are required in the city (county or town) as a whole." A separate assessment on real estate within the district may be used for a variety of purposes including physical improvements and maintenance, general business promotion, facilities operation and staffing. (Code of Virginia, Sections 15.1-18.2 and 18.3).

Real Estate Tax Abatement
Local governments may "provide for the partial exemption from taxation of real estate on which a structure no less than 20 years of age has been substantially rehabilitated." Taxes are paid on the re-rehab value of the building for up to fifteen years, and can apply to residential, commercial or industrial properties. This has been substantially revised as of July 1, 1995. (Code of Virginia, Sections 58.1-3220 and 3221).

Real estate tax abatement of up to 25 years is also allowed for hotel/motel properties at least 35 years of age which are rehabilitated for residential use. The abatement may be up to 90% of the structure's value after renovation. (Code of VA, Section 58.1-3220.01).

Tax Increment Financing (TIF)
Any locality may create TIF districts to stimulate private investment in development project areas. TIF district boundaries are set and the current or "base assessed value" of tax revenue is determined. In the ensuing years the base value continues to go to the locality's general fund, but any increase in revenue due to redevelopment (the increment) is placed in a separate TIF Fund. TIF funds are usually used to pay off debt incurred to provide redevelopment incentives such as land assembly and site preparation, infrastructure improvements, etc.. (Code of VA, Sections 58.1-3245 through 3245.5).

Community Development Bonds
Certain local governments may issue tax-exempt revenue bonds for private real estate development. Bond proceeds may be used to pay for the construction and ongoing operating expenses of several public facilities and services within the development area. A separate and additional tax on real estate is used to pay the debt service on the bonds. (Code of VA, Sections 15.1-1241, 15.1-1252, 15.1-1259 and 15.1-1250.03).

Local Technology Zones
All cities, counties and towns may designate one or more zones of up to 125 acres to offer up to ten years of incentives and regulatory flexibility, including reductions of gross receipts tax and permit fees, special zoning, etc. (Code of VA, Sec. 58.1-3850)

For Additional Information Contact:
Department of Development
500 East Main Street
Suite 1500
Norfolk, VA  23510

PHONE: (757) 664-4338
FAX: (757) 664-4315