58.1-3603 - Exemptions not applicable when building is source of revenue.
§ 58.1-3603. Exemptions not applicable when building is source of revenue.
A. Whenever any building or land, or part thereof, exempt from taxationpursuant to this chapter and not belonging to the Commonwealth is a source ofrevenue or profit, whether by lease or otherwise, all of such buildings andland shall be liable to taxation as other land and buildings in the samecounty, city or town. When a part but not all of any such building or land,however, is a source of revenue or profit, and the remainder of such buildingor land is used by any organization exempted from taxation pursuant to thischapter for its purposes, only such portion as is a source of profit orrevenue shall be liable for taxation.
B. In assessing any building and the land it occupies pursuant to subsectionA, the assessing officer shall only assess for taxation that portion of theproperty as is a source of profit or revenue and the tax shall be computed onthe basis of the ratio of the space as is a source of profit or revenue tothe entire property. When any such property is leased for portions of a yearthe tax shall be computed on the basis of the average use of such propertyfor the preceding year.
C. In determining whether any building or land, or part thereof, is a sourceof revenue or profit, rent from the lease of the property applied to reduceindebtedness against the property by payment of the principal of anoutstanding bond or note held by a political subdivision of the Commonwealthshall not constitute revenue or profit, provided that the property is leasedto a lessee who is exempt from taxation pursuant to § 501(c)(3) of theInternal Revenue Code and is used by such lessee exclusively for charitablepurposes.
(Code 1950, §§ 58-14, 58-16; 1950, p. 659; 1984, c. 675; 1996, c. 534.)