58.1-3245.8 - Adoption of local enterprise zone development taxation program.
§ 58.1-3245.8. Adoption of local enterprise zone development taxation program.
A. The governing body of any county, city, or town may adopt a localenterprise zone development taxation program by passing an ordinancedesignating an enterprise zone located within its boundaries as a localenterprise zone; however, an ordinance may designate an area as a localenterprise zone contingent upon the designation of the area as an enterprisezone pursuant to Chapter 49 (§ 59.1-538 et seq.) of Title 59.1. If thecounty, city, or town contains more than one enterprise zone, such ordinancemay designate one or more as a local enterprise zone. If an enterprise zoneis located in more than one county, city, or town, the governing body maydesignate the portion of the enterprise zone located within its boundaries asa local enterprise zone. An ordinance designating a local enterprise zoneshall provide that all or a specified percentage of the real estate taxes,machinery and tools taxes, or both, in the local enterprise zone shall beassessed, collected and allocated in the following manner:
1. The local assessing officer shall record in the appropriate books both thebase assessed value and the current assessed value of the real estate ormachinery and tools, or both, in the local enterprise zone.
2. Real estate taxes or machinery and tools taxes attributable to the lowerof the current assessed value or base assessed value of real estate ormachinery and tools located in a local enterprise zone shall be allocated bythe treasurer or director of finance as they would be in the absence of suchordinance.
3. All or the specified percentage of the increase in real estate taxes ormachinery and tools taxes, or both, attributable to the difference between(i) the current assessed value of such property and (ii) the base assessedvalue of such property shall be allocated by the treasurer or director offinance and paid into a special fund entitled the "Local Enterprise ZoneDevelopment Fund" to be used as provided in § 58.1-3245.10. Such amountspaid into the fund shall not include any additional revenues resulting froman increase in the tax rate on real estate or machinery and tools after theadoption of a local enterprise zone development taxation ordinance, nor shallit include any additional revenues merely resulting from an increase in theassessed value of real estate or machinery and tools which were located inthe zone prior to the adoption of a local enterprise zone developmenttaxation ordinance unless such property is improved or enhanced.
B. The governing body shall hold a public hearing on the need for a localenterprise zone development taxation program in the county, city, or townprior to adopting a local enterprise zone development taxation ordinance.Notice of the public hearing shall be published once each week for threeconsecutive weeks immediately preceding the public hearing in each newspaperof general circulation in such county, city, or town. The notice shallinclude the time, place and purpose of the public hearing; define localenterprise zone development taxation; indicate the proposed boundaries of thelocal enterprise zone; state whether all or a specified percentage of realproperty or machinery or tools, or both, will be subject to local enterprisezone development taxation; and describe the purposes for which funds in theLocal Enterprise Zone Development Fund are authorized to be used.
(1997, c. 314; 2005, cc. 863, 884.)