Sec. 40-34. - Finding of fact.

The council in 1976 found that the preservation of real estate devoted to agricultural use within the boundaries of the city was in the public interest, and, having heretofore adopted a land-use plan, ordained that such real estate shall be taxed in accordance with the provisions of Article 4 of Chapter 32 of Title 58.1 of the Code of Virginia and of this division.

Despite this plan to promote agricultural use, after a study of this matter the council hereby finds that the number of parcels of land in the city devoted to agricultural use has so diminished that it is no longer in the public interest to continue the taxation of real estate in accordance with the provisions of Article 4 of chapter 32 of Title 58.1 of the Code of Virginia and this division, and as a result of same, such assessment and taxation will cease as of June 30, 2001.

(Ord. No. 2282, § 16-136; Ord. No. 5591-01, § 1)

Sec. 40-35. - Application for classification, assessment, etc., generally.

(a)

For the purpose of assessment and taxation prior to July 1, 2001, the owner of any real estate meeting the criteria set forth in Sections 58.1-3230 and 58.1-3233 of the Code of Virginia may, at least sixty (60) days preceding the tax year for which such taxation is sought, apply to the assessor 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 Section 58.1-3236 of the Code of Virginia. In any year in which a general reassessment is being made, such application may be submitted until thirty (30) days have elapsed after the notice of increase in assessment is mailed.

(b)

The application provided for in this section shall be on forms provided by the state department of taxation and supplied by the assessor and shall include such additional schedules, photographs and drawings as may be required by the assessor. An individual who is the owner of an undivided interest in a parcel may apply on behalf of himself and the other owners of such parcel upon submitting an affidavit that such other owners are minors or cannot be located. An application shall be submitted whenever the use or acreage of such land previously approved changes; provided, however, that such property owner must re-validate annually with the assessor any applications previously approved.

(c)

An application fee of ten dollars ($10.00) shall accompany each application submitted under this section. A separate application shall be filed for each parcel on the land book.

(Ord. No. 2282, § 16-137; Ord. No. 5591-01, § 1)

Sec. 40-36. - Determination of assessor.

(a)

Promptly upon receipt of any application under this division, the assessor shall determine whether the subject property meets the criteria for taxation hereunder. If the assessor determines that the subject property does meet such criteria, the assessor shall determine the value of such property for its qualifying use, as well as its fair market value.

(b)

In determining whether the subject property meets the criteria for "agricultural use," the assessor may request an opinion from the state commissioner of agriculture and commerce. Upon the refusal of such commissioner to issue an opinion, or in the event of an unfavorable opinion which does not comport with standards set forth by the commissioner, the party aggrieved may seek relief from any court of record wherein the real estate in question is located. If the court finds in such party's favor, it may issue an order which shall serve in lieu of an opinion for the purposes of this division.

(Ord. No. 2282, § 16-138; Ord. No. 5591-01, § 1)

Sec. 40-37. - Land book entries; tax to be extended from use value.

The use value and fair market value of any property qualifying under this division 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.

(Ord. No. 2282, § 16-139; Ord. No. 5591-01, § 1)

Sec. 40-38. - Change in use or zoning of real estate assessed; roll-back taxes.

(a)

When real estate qualifies for assessment and taxation prior to July 1, 2001, on the basis of use under this division, and the use by which it qualified changes to a non-qualifying use, or the zoning of the real estate is changed to a more intensive use at the request of the owner or his agent, it shall be subject to additional taxes, hereinafter referred to as roll-back taxes. Such additional taxes shall only be assessed against that portion of such real estate which no longer qualifies for assessment and taxation on the basis of use or zoning. Liability for roll-back taxes shall attach and be paid to the treasurer only if the amount of tax due exceeds ten dollars ($10.00).

(b)

The roll-back tax shall be equal to the sum of the deferred tax for each of the five (5) most recent complete tax years including simple interest on such roll-back taxes at the rate prescribed in section 40-28(c) for each of the tax years. The deferred tax for each year shall be equal to the difference between the tax levied and the tax that would have been levied based on the fair market value assessment of the real estate for that year. In addition the taxes for the current year shall be extended on the basis of fair market value which may be accomplished by means of a supplemental assessment based upon the difference between the use value and the fair market value.

(c)

Liability to the roll-back taxes shall attach when a change in use occurs, or a change in zoning of the real estate to a more intensive use at the request of the owner or his agent occurs. Liability to the roll-back taxes shall not attach when a change in ownership of the title takes place if the new owner does not re-zone the real estate to a more intensive use and continues the real estate in the use for which it is classified under the conditions prescribed in this division. The owner of any real estate which has been zoned to a more intensive use at the request of the owner or his agent as provided in subsection (d), or otherwise subject to or liable for roll-back taxes, shall, within sixty (60) days following such change in use or zoning, report such change to the real estate assessor on such forms as may be prescribed. The real estate assessor shall forthwith determine and assess the roll-back tax, which shall be assessed against and paid by the owner of the property at the time the change in use which no long qualifies occurs, or at the time of the zoning of the real estate to a more intensive use at the request of the owner or his agent occurs, and shall be paid to the treasurer within thirty (30) days of the assessment. If the amount due is not paid by the due date, the treasurer shall impose a penalty and interest on the amount of the roll-back tax, including interest for prior years. Such penalty and interest shall be imposed in accordance with sections 40-28 (b) and (c).

(d)

Real property zoned to a more intensive use, at the request of the owner or his agent, shall be subject to and liable for the roll-back tax at the time such zoning is changed. The roll-back tax shall be levied and collected from the owner of the real estate in accordance with subsection (c). Real property zoned to a more intensive use before July 1, 1988, at the request of the owner or his agent, shall be subject to and liable for the roll-back tax at the time of such zoning. Said roll-back tax, plus interest calculated in accordance with subsection (b), shall be levied and collected at the time such property was rezoned. For property rezoned after July 1, 1988, but before July 1, 1992, no penalties or interest, except as provided in subsection (b), shall be assessed, provided the said roll-back tax is paid on or before October 1, 1992. No real property rezoned to a more intensive use at the request of the owner or his agent shall be eligible for taxation and assessment under this article, provided that these provisions shall not be applicable to any rezoning which is required for the establishment, continuation, or expansion of a qualifying use. If the property is subsequently rezoned to agricultural, horticultural, or open space, it shall be eligible for consideration for assessment and taxation under this article only after three (3) years have passed since the rezoning was effective.

However, the owner of any real property that qualified for assessment and taxation on the basis of use, and whose real property was rezoned to a more intensive use at the owner's request prior to 1980, may be eligible for taxation and assessment under this article provided the owner applies for rezoning to agricultural, horticultural, open-space or forest use. The real property shall be eligible for assessment and taxation on the basis of the qualifying use for the tax year following the effective date of the rezoning. If any such real property is subsequently rezoned to a more intensive use at the owner's request, within five (5) years from the date the property was initially rezoned to a qualifying use under this section, the owner shall be liable for roll-back taxes when the property is rezoned to a more intensive use. Additionally, the owner shall be subject to a penalty equal to fifty (50) percent of the roll-back taxes due as determined under subsection (b) of this section.

(Ord. No. 2282, §§ 16-140, 16-141; Ord. No. 4560-94; Ord. No. 5150-98, § 1; Ord. No. 5591-01, § 1)

Sec. 40-39. - Misstatements in application filed under division.

Any person making a material misstatement of fact in any application filed pursuant to this division 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 such person shall be further assessed with an additional penalty of one hundred (100) percentum of such unpaid taxes.

(Ord. No. 2282, § 141; Ord. No. 5591-01, § 1)

Sec. 40-40. - Application of general tax law.

The provisions of Title 58.1 of the Code of Virginia applicable to local levies and real estate assessment and taxation shall be applicable to assessments and taxation under this article mutatis mutandis including, without limitation, provisions relating to tax liens and the correction of erroneous assessments, and for such purposes the roll-back taxes shall be considered to be deferred real estate taxes.

(Ord. No. 2282, § 16-142; Ord. No. 5591-01, § 1)

Sec. 40-41. - Transition after discontinuance of agricultural land use assessment program.

(a)

That on and after July 1, 2001, the benefits derived from the program for the assessment of land devoted to agricultural uses will no longer be available to the owner(s) of that real estate previously afforded such designation through the process found in sections 40-34 through 40-40 of this division. The council adopts the provisions of this section to specify the transition provisions made necessary by its decision to discontinue the agricultural land use assessment program as of June 30, 2001.

(b)

The "roll-back" tax calculation provisions set forth in Division 2 of this chapter, as adopted and made effective through June 30, 2001, shall remain in force from July 1, 2001, through June 30, 2006.

(Ord. No. 5591-01, § 1)

Secs. 40-42—40-45. - Reserved.