All real estate is subject to taxation, except that specifically exempted by state code. Property is assessed on July 1 for each fiscal year which begins annually on July 1 and ends on June 30 of the following year. Tax bills are due in two equal installments, December 5 and June 5.  As required by Virginia Code, every two years Isle of Wight County conducts a General Reassessment on all real estate. A professional and independent reappraisal company hired by the Board of Supervisors carries out this task.

The Real Estate Division of the Commissioner's Office is responsible for maintaining all real property records for the purpose of assessment and taxation. Property records are accessible to the public. Transfers of property ownership are performed by obtaining deed transfers, wills, and other records from the Clerk of the Circuit Court. Plats of survey are used to adjust acreages and create new parcels under County subdivision ordinances. It is important that deeds of transfer, wills and plats of survey be recorded in the Circuit Court Clerk’s Office in a timely manner in order to ensure that actual owners of property are accurately assessed.

Railroads, pipelines and utility properties are assessed by the State Corporation Commission or Department of Taxation and are reported to the Commissioner of the Revenue for inclusion in the local tax roll. The Commissioner of the Revenue verifies this information and maintains these records in the office.

Land Use Assessment Program

QUALIFICATIONS FOR SPECIAL CLASSIFICATION

Agricultural Use:Must be devoted to the bona fide production for sale of plants and animals useful to man under uniform standards prescribed by the Commissioner of Agriculture and Consumer Services, or when devoted to and meeting the requirements and qualifications for payments or other compensation pursuant to a soil conservation program under an agreement with an agency of the federal government. Requires five acres minimum in agricultural use and a five-year history of agricultural use.

Horticultural Use:Must be devoted to the bona fide production for sale of fruits of all kinds, vegetables, nursery and floral products under uniform standards prescribed by the Commissioner of Agriculture and Consumer Services, or devoted to and meeting requirements and qualifications for payment or other compensation pursuant to a soil conservation program under an agreement with an agency of the federal government. Requires five acres minimum in horticultural use and a five-year history of horticultural use.

Forest Use:When devoted to tree growth in such quantity and so spaced and maintained as to constitute a forest area under standards prescribed by the State Forester. Requires 20 acres minimum in forest use.

Applications
Applications for taxation on the basis of a land use assessment must be received by April 30th in the Real Estate Assessor’s Office. This application, if approved, will be effective for the next fiscal tax year which will begin on July 1. There is no application fee. The application includes an Affidavit. All owners of the property must sign the application. The certification form must be signed and notarized. An amended application shall be submitted whenever the use, acreage or zoning of the parcel previously approved changes.

Incorrect information on the application will be considered material misstatements and subject the owner to removal from the program with the possibility of rollback tax assessment.

Revalidation
In the County of Isle of Wight property owners who have made no change to the land, its use, its zoning or its ownership are not required to revalidate the application

Change in Use or Zoning
If the use of the property is changed to a non-qualifying use or if the property is rezoned by the owner to a more intensive use, the owner is required to report any change to the Real Estate Assessor within 60 days after such change occurs. An amended application must also be filed.

Rollback Taxes
This is the recovery of the original tax due on a tract of land. When real estate has been taxed according to the special assessment criteria and the land use changes to a non-qualifying use, a rollback tax will be applied. Rollback taxes are also applied when property, at the request of the owner or agent, is rezoned to a more intensive use (a change in zoning). If a parcel is subdivided or a split-off parcel occurs (subdivision) rollback taxes will be applied when the parcels affected do not meet the land use qualifications.

How are rollback taxes calculated?
The rollback tax is equal to the difference between the use value assessment tax and tax on the fair market value, for the present and each of the five preceding tax years in which the real estate was valued, assessed, and taxed under the land use ordinance. Interest and penalties only apply if the rollback tax is not paid within thirty days. Rollback taxes shall be assessed and paid only if the amount of tax exceeds $2.00. Currently there is no minimum tax prescribed.

Real Estate Taxes
Property shall be removed from the land use assessment program if delinquent taxes are not paid by June 1 of the year following the year in which due.

QUESTIONS AND ANSWERS

What is the Land Use Assessment Program?
It is a tax deferral program developed under a state law that allows communities to adopt a program of special assessments for agricultural, horticultural, forest and open-space lands

What is the purpose of this Program?
The purpose is to encourage the preservation and beneficial use of real estate in order to assure a readily available source of agricultural, horticultural, and forest products and to provide for open-space preservation.

How will this program save me money?
Qualifying properties are taxed based on the “use” value assessment, which generally is less than fair market value assessments.

In order to qualify for a land use assessment is it mandatory to receive income from the use of my property?
Yes, the application process requires property owners to certify the income earned from agricultural and horticultural use of the property.

How will my property qualify for a special use value assessment?
When a parcel meets the criteria set by the Uniform Standards of the Virginia land use laws. Qualifying uses under the agricultural and horticultural classification include:

If I own at least five acres of land and one horse, will this parcel qualify for a land use assessment?
Yes, boarding, training and breeding of horses can qualify, however, horses for the personal use of the owner doesn’t qualify for a land use assessment. And all five acres must be devoted to the qualifying use.

What happens when I sell my property (the entire tract)?
As long as the property remains in a “qualifying use” the parcel can remain in the land use assessment program. New owners must reapply in order to remain in the program.

Will I have to pay rollback taxes if I sell a portion of my property?
Yes, for an example, subdividing twelve acres into four three-acre lots would result in rollback taxes on the subdivided portions.

Examples of “Use” changes that will result in the assessment of rollback taxes include, but are not limited to:

Examples of “Zoning” changes that will result in the assessment of rollback taxes include, but are not limited to:

How do I apply for real estate tax relief?

Call the Commissioner of the Revenue's Office at 365-6219 to set up an appointment. Applications are taken by appointment only. The application process usually takes less than thirty minutes to complete and involves the applicant supplying documentation about his/her income and resources. The applicant must sign an affidavit confirming the accuracy of all information.

Is the information contained in my application kept confidential?

Yes. All information is strictly confidential and not open to public inspection.

Do I have to reapply each year?

Yes. Tax relief is granted on an annual basis and a new application must be filed each year.

What is the deadline for applying?

To be eligible for the real estate tax relief program, you must apply each year between January 1st and October 15th. If you are eligible, relief will be applied to your real estate tax bills due on December 5th and June 5th of the following fiscal year.

Do I have to live on the property to be exempted?

Yes. The applicant seeking relief must own and occupy the property. An exception is allowed for persons living in nursing homes, hospitals, or convalescent homes for physical or mental care so long as their property is not being used by or rented to others for monetary consideration.

What is the age requirement for senior citizens?

The owner whose name appears on the tax bill must be at least 65 years of age on or before December 31st of the immediately preceding taxable year in which the application is made. The spouse can be under the age of 65.

Is there an age requirement for disabled citizens?

No. If a person who is permanently and totally disabled owns real estate, there is no minimum age requirement.

What proof is needed to establish the fact that a person is permanently and totally disabled?

Certification is required from the Department of Veterans Affairs, the Railroad Retirement Board, or the Social Security Administration. If an applicant is not eligible for certification by any of these agencies, there must be sworn affidavits by two medical doctors licensed to practice medicine in Virginia. One of these affidavits must be based upon a physical examination.

What is the maximum amount of income that I can have to be eligible?

The gross combined income of the owner(s) during the calendar year preceding the taxable year cannot exceed $39,300 per year. Income from relatives living in the dwelling (excluding up to $6,500 per person) is included in computing gross income.

What is the percentage of tax relieved based on income?

What are some examples of income?

Wages, Social Security, annuities, pensions, disability income, interest, dividends, business income, farm income, income from rental property, and income from roomers or boarders.

What is maximum amount of resources that I can have?

The applicant's net worth, not counting the value of the applicant's home, cannot exceed $168,500.

What are some examples of resources?

Real estate other than one (1) acre and the residence thereon, bank accounts, trusts, certificates of deposit, stocks, bonds, cash value of life insurance policies, and value of personal property such as automobiles.

Heirs do not have to repay the amount of taxes relieved.

Isle of Wight operates an EXEMPTION program.

In order to apply, does the real estate have to be "free and clear"?

No. If there is a mortgage on the property, you are still eligible to apply for real estate tax relief.

Are mobile homes eligible to be considered for tax relief?