# Virginia SB181: Real property tax; partial exemption for repurposing underutilized structures for residential use.

Virginia SB181, Real property tax; partial exemption for repurposing underutilized structures for residential use., is a 2026 Regular Session Senate bill sponsored by Angelia Williams Graves (Democratic); status signed, last action 2026-04-22 (House concurred in Governor's recommendation (65-Y 31-N 0-A)); PRIA reads it as touching household money (as of 2026-10-12).

- Canonical: https://policyrisk.com/state-bill/VA-SB181-2026
- As of: 2026-10-12
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia SB181
- State: Virginia
- Session: 2026 Regular Session
- Title: Real property tax; partial exemption for repurposing underutilized structures for residential use.
- Status: signed
- Chamber: Senate
- Introduced: 2026-01-09
- Last action: 2026-04-22, House concurred in Governor's recommendation (65-Y 31-N 0-A)
- Sponsor: Angelia Williams Graves (Democratic)
- Cosponsors: 0
- Touches household money: yes
- Roll calls: 11 (299 yes, 101 no in all)
- Economic provisions PRIA read: 2

## Summary

Real property tax; partial exemption for repurposing underutilized structures for residential use; local incentives. Permits localities to provide partial real estate taxation exemptions for converted real property where such conversion establishes a residential structure that has set aside at least 30 percent of the structure for households with a per capita income at or below 80 percent of the locality's median income or where the building owner is subject to an agreement with the Commonwealth or the locality regarding the provision of affordable housing. Localities have discretion to determine (i) whether a converted building qualifies for the partial exemption, (ii) any additional restrictions and conditions, (iii) whether the exemption is the amount equal to the increase in assessed value or a percentage of such increase resulting from the repurposing of the structure, and (iv) the length of time the exemption will run with the land, not to exceed 15 years. The bill provides that, at any time a building for which its owner claims a partial exemption no longer meets the requirements to receive such exemption, the locality may recapture all or a portion of the exemption granted in the immediately preceding year. Further, if a building owner that claims an exemption as described by the bill sells the building for which he is claiming the exemption and, after the sale, the property no longer meets the requirements described by the bill, the purchaser shall be subject to a penalty. The building owner shall provide written notification of the partial exemption to the purchaser. The bill also permits localities to grant tax incentives or provide regulatory flexibility to qualifying converted real property.

## Bill overview: provisions PRIA read

- Tax relief for rebuilt rental housing: mixed, high. Virginia localities can extend partial property tax exemptions to multifamily buildings replaced with multifamily housing. The old structure must generally be at least 15 years old; local rules can require a greater age. Owners need required permits and local verification of completion. Local rules…
- Lower fees for qualifying housing conversions: mixed, low. Virginia localities can adopt programs offering lower permit fees, faster approvals, and lower taxes on business gross receipts for housing conversions. Tax relief can cover a qualifying conversion or businesses maintaining the converted building. Projects must meet the same building-age, conversio…

## Sponsors and cosponsors

- Sponsor: Angelia Williams Graves (Democratic), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-04-22 | Senate | Senate concurred in Governor's recommendation | pass | 21 | 18 |   |
| 2026-04-22 | House | House concurred in Governor's recommendation | pass | 65 | 31 |   |
| 2026-03-04 | Senate | House substitute agreed to by Senate | pass | 21 | 19 |   |
| 2026-03-02 | House | Passed House with substitute | pass | 70 | 29 |   |
| 2026-02-25 | House | Reported from Finance with substitute | pass | 17 | 4 |   |
| 2026-02-24 | House | Subcommittee recommends reporting with substitute | pass | 11 | 0 |   |
| 2026-02-02 | Senate | Read third time and passed Senate Block Vote | pass | 40 | 0 |   |
| 2026-01-30 | Senate | Engrossed by Senate Block Vote (Voice Vote) | pass | 0 | 0 |   |
| 2026-01-29 | Senate | Constitutional reading dispensed Block Vote (on 1st reading) | pass | 40 | 0 |   |
| 2026-01-29 | Senate | Passed by for the day Block Vote (Voice Vote) | pass | 0 | 0 |   |
| 2026-01-28 | Senate | Reported from Finance and Appropriations | pass | 14 | 0 |   |

## Actions (42)

- 2026-04-22: House concurred in Governor's recommendation (65-Y 31-N 0-A) (House)
- 2026-04-22: Senate concurred in Governor's recommendation (21-Y 18-N 0-A) (Senate)
- 2026-04-22: Acts of Assembly Chapter text (CHAP0994) (Governor)
- 2026-04-22: Reenrolled bill text (SB181ER2) (Senate)
- 2026-04-22: Reenrolled (Senate)
- 2026-04-22: Approved by Governor-Chapter 994 (effective 7/1/2026) (Governor)
- 2026-04-22: Signed by President (Senate)
- 2026-04-22: Signed by Speaker (House)
- 2026-04-22: Governor's recommendation adopted (Governor)
- 2026-04-12: Governor's recommendation received by Senate (Governor)
- 2026-03-20: Fiscal Impact statement From TAX (3/20/2026 11:42 am) (Senate)
- 2026-03-14: Governor's Action Deadline 11:59 p.m., April 13, 2026 (Governor)
- 2026-03-14: Enrolled Bill communicated to Governor on March 14, 2026 (Senate)
- 2026-03-10: Bill text as passed Senate and House (SB181ER) (Senate)
- 2026-03-10: Enrolled (Senate)
- 2026-03-10: Signed by President (Senate)
- 2026-03-10: Signed by Speaker (House)
- 2026-03-04: House substitute agreed to by Senate (21-Y 19-N 0-A) (Senate)
- 2026-03-02: Passed House with substitute (70-Y 29-N 0-A) (House)
- 2026-03-02: Engrossed by House - committee substitute (House)
- 2026-03-02: committee substitute agreed to (House)
- 2026-03-02: Read third time (House)
- 2026-02-27: Read second time (House)
- 2026-02-26: Committee substitute printed 26108536D-H1 (House)
- 2026-02-25: Reported from Finance with substitute (17-Y 4-N) (House)
- 2026-02-24: House subcommittee offered (House)
- 2026-02-24: Subcommittee recommends reporting with substitute (11-Y 0-N) (House)
- 2026-02-20: Assigned HFIN sub: Subcommittee #2 (House)
- 2026-02-05: Referred to Committee on Finance (House)
- 2026-02-05: Read first time (House)
- 2026-02-05: Placed on Calendar (House)
- 2026-02-02: Read third time and passed Senate Block Vote (40-Y 0-N 0-A) (Senate)
- 2026-01-30: Engrossed by Senate Block Vote (Voice Vote) (Senate)
- 2026-01-30: Read second time (Senate)
- 2026-01-29: Passed by for the day Block Vote (Voice Vote) (Senate)
- 2026-01-29: Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A) (Senate)
- 2026-01-29: Passed by for the day (Senate)
- 2026-01-29: Rules suspended (Senate)
- 2026-01-28: Reported from Finance and Appropriations (14-Y 0-N) (Senate)
- 2026-01-23: Fiscal Impact statement From TAX (1/23/2026 6:15 pm) (Senate)
- 2026-01-09: Referred to Committee on Finance and Appropriations (Senate)
- 2026-01-09: Prefiled and ordered printed; Offered 01-14-2026 26100919D (Senate)

## Bill text

- Chaptered, 2026-04-22: [HTML](https://lis.blob.core.windows.net/files/1225003.HTML), [PDF](https://lis.blob.core.windows.net/files/1225002.PDF)
- Reenrolled, 2026-04-22: [HTML](https://lis.blob.core.windows.net/files/1220866.HTML), [PDF](https://lis.blob.core.windows.net/files/1220865.PDF)
- Gov Recommendation, 2026-04-12: [HTML](https://lis.blob.core.windows.net/files/1219584.HTML)
- Enrolled, 2026-03-10: [HTML](https://lis.blob.core.windows.net/files/1198809.HTML), [PDF](https://lis.blob.core.windows.net/files/1198808.PDF)
- Substitute, 2026-02-26: [HTML](https://lis.blob.core.windows.net/files/1184808.HTML), [HTML](https://lis.blob.core.windows.net/files/1179261.HTML), [PDF](https://lis.blob.core.windows.net/files/1184807.PDF), [PDF](https://lis.blob.core.windows.net/files/1179260.PDF)
- Substitute, 2026-02-24: [HTML](https://lis.blob.core.windows.net/files/1179056.HTML), [PDF](https://lis.blob.core.windows.net/files/1179055.PDF)
- Introduced, 2026-01-09: [HTML](https://lis.blob.core.windows.net/files/1083679.HTML), [PDF](https://lis.blob.core.windows.net/files/1083678.PDF)

## Related bills

- HB5: Employment; paid sick leave, civil penalties. (signed)
- SB199: Employment; paid sick leave, civil penalties. (signed)
- HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with rental agreement. (signed)
- HB1393: Electric utilities; pilot program for energy assistance and weatherization for certain individuals. (signed)
- HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, termination by landlord. (signed)
- HB675: Protection of employees; coercion or threat based on immigration status, civil penalty. (signed)

## Sources
- [Chaptered (HTML)](https://lis.blob.core.windows.net/files/1225003.HTML)
- [Chaptered (PDF)](https://lis.blob.core.windows.net/files/1225002.PDF)
- [Reenrolled (HTML)](https://lis.blob.core.windows.net/files/1220866.HTML)
- [Reenrolled (PDF)](https://lis.blob.core.windows.net/files/1220865.PDF)
- [Gov Recommendation (HTML)](https://lis.blob.core.windows.net/files/1219584.HTML)
- [Enrolled (HTML)](https://lis.blob.core.windows.net/files/1198809.HTML)
- [Enrolled (PDF)](https://lis.blob.core.windows.net/files/1198808.PDF)
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1184808.HTML)
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1179261.HTML)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1184807.PDF)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1179260.PDF)
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1179056.HTML)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1179055.PDF)
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1083679.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1083678.PDF)

## Related
- [HB5: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-HB5-2026)
- [SB199: Employment; paid sick leave, civil penalties.](https://policyrisk.com/state-bill/VA-SB199-2026)
- [HB95: Va. Residential Landlord and Tenant Act; landlord remedies, noncompliance with…](https://policyrisk.com/state-bill/VA-HB95-2026)
- [HB1393: Electric utilities; pilot program for energy assistance and weatherization for…](https://policyrisk.com/state-bill/VA-HB1393-2026)
- [HB834: Virginia Residential Landlord and Tenant Act; fire or casualty damage, terminat…](https://policyrisk.com/state-bill/VA-HB834-2026)
- [HB675: Protection of employees; coercion or threat based on immigration status, civil…](https://policyrisk.com/state-bill/VA-HB675-2026)
- [Virginia bills](https://policyrisk.com/states/virginia/bills)
- [Virginia state hub](https://policyrisk.com/states/virginia)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/VA-SB181-2026 (as of 2026-10-12).