Real Estate Eligible for Tax Exemption
Certain real estate owned by religious, educational, and charitable organizations may be exempt from taxation. Real property exemptions are authorized by the Constitution of Virginia, Code of Virginia § 58.1-3600-3651 and the City of Hampton Municipal Code Sec. 37-4 through Sec. 37-8. Exemptions fall into two categories.
Exemption by "Classification" relates to property used for such uses as schools, houses of worship, or volunteer fire departments: Exemptions by "Classification" are administratively processed by the Office of the Assessor of Real Estate.
Exemptions by "Designation" relate to property used for purposes, and by organizations, not specifically "classified" in the Constitution of Virginia or Code of Virginia. Exemptions by "Designation" must be approved by the City Council: There is currently a moratorium on exemptions by "Designation" in effect.
Exempt by Classification Applications are available at the Office of the Assessor of Real Estate.
Real Estate Damage Tax Abatement
If you are displaced from your home or business for more than thirty (30) days due to a fortuitous act, you may be eligible for a Real Estate Tax Abatement. A Real Estate Tax Abatement Application must be submitted by, or on behalf of the owner with a notarized agent authorization form, within six months of the date that the building was razed, destroyed, or damaged.
If the application is approved after a follow-up inspection, the assessment will be adjusted.
Real Estate Damage Tax Abatement Applications are available on the Applications & Forms section of the website.
Rehabilitation Tax Credit Program
The Office of the Assessor of Real Estate administers a program to encourage both homeowners and businesses to rehabilitate their properties. If approved, a credit on taxes will be applied on those improvements for a period of six (6) years. The program is authorized by the Code of Virginia § 58.1-3220 & § 58.1-3221. The exemption commences July 1st of the tax year immediately following completion of rehabilitation.
The exemption is calculated at 100 percent of the rehabilitation credit for the first three (3) years following the commencement of the exemption period and at 50 percent for the second three (3) years. Full eligibility and qualification requirements are listed on the application. The application must be filed within five (5) working days after building permits have been issued and prior to any renovations being started.
Rehabilitation Tax Credit Applications are available on the Applications & Forms section of the website.
Land Use Program
The Land Use Program is provided for in the Code of Virginia § 58.1-3230. The program permits localities to offer a program of special assessments for agricultural and horticultural lands. Properties that qualify for this program are assessed on the value of the land for agricultural production rather than fair market value. The purpose of the program is to encourage the continuation of farming and the retention of aesthetically pleasing natural vistas.
There is a minimum acreage requirement of five acres.
Other qualifying conditions and restrictions exist for properties taxed under this program. There is an initial fee for new properties in the Land Use Program. Initial applications ($25 application fee) and annual revalidation applications must be filed by May 1 for July 1. Late initial applications and late revalidation applications may be filed from May 2 through June 30 with a $50.00 late application fee.
Land Use Applications are available at the Office of the Assessor of Real Estate.
The placement of a conservation easement on a property often reduces real estate tax liability as a result of the diminution of the assessed value.
Additional Real Estate Tax Relief Programs
The Commissioner of the Revenue offers additional tax relief programs.
(Tax Relief for Elderly & Disabled, Tax Exemption - Disabled Veteran/Surviving Spouse, Tax Exemption - Surviving Spouse of Military KIA)