RESOLUTION TO ESTABLISH

POLICY FOR CONSIDERATION OF REQUESTS FOR

TAX-EXEMPT STATUS BY DESIGNATION

 

WHEREAS, effective January 1, 2003, the Virginia Constitution provides that only local governments can grant property tax-exempt status by designation; and

 

WHEREAS, Albemarle County Code § 15-1602 was adopted to establish the procedure for considering requests for tax-exempt status by designation pursuant to Virginia Code § 58.1-3651; and

 

WHEREAS, Albemarle County Code § 15-1602 and applicable state law establish that the Board of Supervisors has the discretion whether or not to consider and approve a request for it to grant property tax-exempt status by special designation; and

 

WHEREAS,  the number of requests to the Board of Supervisors for tax-exempt status is likely to increase now that the authority to grant such status to qualifying entities is purely a local decision; and

 

WHEREAS, many of the property owners that might qualify for tax-exempt status are already subsidized by the County through donations granted by the County in its annually adopted budget; and

 

WHEREAS, to be fair and orderly in its treatment of all property owners that might qualify for tax-exempt status and to fairly allocate limited tax dollars to those entities requesting tax relief or seeking County funding, the Board of Supervisors prefers that such funding decisions be made as part of the budget process rather than by grants of perpetual tax-exempt status.

 

NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of Albemarle County that the Board shall not consider or adopt ordinances granting tax-exempt status by designation unless there is found to be compelling circumstances to do so.

 

BE IT FURTHER RESOLVED that the Board encourages all qualifying entities seeking relief from property taxation by requesting tax-exempt status to instead request County funding during the County’s annual budget process in which the County will consider all factors relating to the request so that a fair and appropriate allocation of County funding, if available, can be determined on an annual basis.

 

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