VirginiaHB8542026 Regular SessionHouseWALLET

Real property tax; local classification or designation for property, nonprofit organizations.

Sponsored By: Rae Cousins (Democratic)

Signed by Governor

Summary

Real property tax; local classification or designation for portion of property. Clarifies that, in accordance with the Constitution of Virginia and by adoption of a local ordinance, any locality may by designation or classification exempt from real or personal property taxes, or both, the real or personal property, or both, owned by an ownership entity of which a controlling interest of the managing member or general partner of such ownership entity is held, directly or indirectly, by one or more nonprofit organizations, notwithstanding any for-profit ownership interests, that is used for charitable or benevolent purposes. The bill requires such local ordinance to stipulate any suspension or termination of such exemption in such ordinance.The bill also provides that any rental income or other sources of income received from any portion of real property that is used for charitable or benevolent purposes in accordance with such constitutional designation or classification shall not be considered a source of revenue or profit for which tax shall be assessed. Finally, the bill provides that the purpose of the bill is to stimulate public purpose projects by clarifying that localities have such authority and provides that the provisions of the bill providing that any county, city, or town may exempt from real or personal property taxes, or both, any real or personal property owned by an ownership entity of which a controlling interest of the managing member or general partner of such ownership entity is held directly or indirectly by one or more nonprofit organizations, notwithstanding any for-profit ownership interests, that is used for charitable or benevolent purposes are declaratory of existing law.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Local property tax relief for nonprofits

Virginia counties, cities, and towns can grant property tax exemptions by local ordinance; relief is not automatic. Qualifying uses include religious, charitable, patriotic, historical, benevolent, cultural, and public park or playground purposes, plus affordable housing. Eligible owners include nonprofits and single-member companies owned by a nonprofit. Mixed nonprofit and for-profit ownership also qualifies when for-profit participation supports the charitable purpose and nonprofits directly or indirectly control the managing member or general partner. Properties must keep their approved use, and organizations that unlawfully discriminate cannot qualify. Rental and other income from qualifying charitable or benevolent real property does not, by itself, defeat the exemption. The law declares this authority already exists and applies to ordinances adopted after January 1, 2003; earlier exemptions remain unaffected.

Sponsors & Cosponsors

Sponsor

  • Rae Cousins

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 321 • No: 6

House vote • 3/6/2026

Senate substitute agreed to by House

Yes: 90 • No: 5

Senate vote • 3/4/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/4/2026

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

Senate vote • 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/3/2026

Reported from Finance and Appropriations with substitute

Yes: 15 • No: 0

Senate vote • 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

House vote • 2/3/2026

Read third time and passed House

Yes: 97 • No: 0

House vote • 1/28/2026

Reported from Finance with substitute

Yes: 22 • No: 0

House vote • 1/27/2026

Subcommittee recommends reporting with substitute

Yes: 9 • No: 0

House vote • 1/27/2026

Subcommittee recommends reporting with substitute

Yes: 8 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0683)

    4/13/2026Governor
  2. Approved by Governor-Chapter 683 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact statement From TAX (3/24/2026 9:50 am)

    3/24/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  5. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  6. Bill text as passed House and Senate (HB854ER)

    3/13/2026House
  7. Enrolled

    3/13/2026House
  8. Signed by President

    3/13/2026Senate
  9. Signed by Speaker

    3/13/2026House
  10. Senate substitute agreed to by House (90-Y 5-N 0-A)

    3/6/2026House
  11. Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

    3/4/2026Senate
  12. Finance and Appropriations Substitute agreed to

    3/4/2026Senate
  13. Committee substitute printed 26108143D-S1

    3/4/2026Senate
  14. Engrossed by Senate - committee substitute

    3/4/2026Senate
  15. Read third time

    3/4/2026Senate
  16. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  17. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  18. Rules suspended

    3/3/2026Senate
  19. Reported from Finance and Appropriations with substitute (15-Y 0-N)

    3/3/2026Senate
  20. Fiscal Impact statement From TAX (2/17/2026 3:55 pm)

    2/17/2026House
  21. Referred to Committee on Finance and Appropriations

    2/4/2026Senate
  22. Constitutional reading dispensed (on 1st reading)

    2/4/2026Senate
  23. Read third time and passed House (97-Y 0-N 0-A)

    2/3/2026House
  24. Engrossed by House - committee substitute

    2/2/2026House
  25. committee substitute agreed to

    2/2/2026House

Bill Text

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