Land Use Taxation in Virginia

The state of Virginia allows for counties to provide real estate tax relief for landowners of four types of real estate: land devoted to agricultural use, horticultural use, forest use and open space use. Land set aside in an agricultural or forest district is taxed at the land use rate regardless of whether the county has a land-use ordinance.

As an example Albemarle County has the following rules for qualifying for land-use. Most of the area counties follow similar guidelines, but before purchasing a property, be sure to check with the specific county’s real estate office to learn their exact specifications. Here is a guide to the Virginia Counties that participate in land use taxation.

Land use status may be transferred upon the sale of a property, but there are strict guidelines that must be met.

Qualifying for Virginia land use tax

1. Agriculture Use: Must have a minimum of five acres and be participating in an soil conservation program usually provided by USDA’s Farm Services Agency or Natural Resource Conservation Service. We can put you in contact with the proper office. The minimum livestock requirements are: one cow, one horse, five sheep, five swine, one hundred chickens, and/or sixty-six turkeys per every five acres for twelve months. Horses can only be included if they are involved in a breeding or boarding facility. Recreational use of horses does not qualify the land for land use.
2. Horticulture Use: Must have a minimum of five acres and be cultivated for commercial sale. This includes fruits, vegetables, ornamental plants and/or ornamental products. The land must have a five year previous history of production and gross sales for the previous three years must be $1,000 /year minimum.
3. Forest Use: Must have a minimum of twenty acres and must include standing timber and trees devoted to tree growth. Livestock cannot have access to the land in forest use. A professional forest management plan must be in place.
4. Open Space: Must have a minimum of 20 acres and set by local ordinance, and be used to provide or preserve the land for park or recreational purposes, conservation of land or other natural resources, floodways, historic or scenic purposes. The deed must have a recorded perpetual conservation, historic or open-space easement held by any public body, or part of an agricultural and/or forestal district.

NOTE: If land is left vacant, idle, or neglected for one year or more, the farm history must begin again for five continuous years. Be sure to find out if the land you are purchasing is currently in land use and make sure that you have the land use rolled over to you, provided that you are going to continue the current land use. This can save you thousands of dollars!

Land Use Taxation in Virginia

Qualifying for Virginia land use tax

All information in this newsletter is deemed accurate but not guaranteed.

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