Virginia · VA

Sell your land in Virginia.

Two Virginia rules move price more than zoning does. Land use assessment defers tax until the use changes, then recovers five years of deferred tax plus the current year. A conservation easement donation can earn a transferable state tax credit worth 40 percent of the value given up.

Tax sale type
Tax deed
Redemption period
No statutory redemption
Rate on redemption
N/A
Closings handled by
Title company

Figures describe Virginia generally. Counties administer their own sales and their own calendars — your county treasurer is the only source for a payoff figure or a sale date you can act on.

Local detail

What actually matters about land in Virginia

The tax sale runs through circuit court

Virginia does not auction tax liens on a courthouse step. Under Va. Code § 58.1-3965 real estate may be sold when taxes are delinquent on December 31 following the second anniversary of the due date, shortened to the first anniversary for parcels carrying a condemned structure, a nuisance, a derelict building, or blight, and for certain parcels assessed at $100,000 or less on the court's findings. Section 58.1-3967 requires the proceeding to be brought by complaint filed in the circuit court where the land sits, with a special commissioner appointed under § 58.1-3970.1 and the sale confirmed by the court. Notice to the owner and newspaper publication come first.

Land use assessment ends with a rollback

Virginia localities may adopt land use assessment by ordinance, taxing qualifying agricultural, horticultural, forest, or open space land on its use value rather than market value. The deferral is a loan, not a gift. Va. Code § 58.1-3237 provides that when the use changes to a nonqualifying use, roll-back taxes come due in the sum of the deferred tax for each of the five most recent complete tax years, and the current year is additionally extended on the basis of fair market value. Simple interest is added at a rate the governing body sets, no greater than the locality's delinquent tax rate. Confirm the parcel's status with the commissioner of the revenue.

The land preservation credit is transferable

Virginia runs one of the most generous conservation incentives in the country, and it is worth knowing before you price a parcel. Va. Code § 58.1-512 grants an income tax credit equal to 40 percent of the fair market value of land or an interest in land donated for conservation, for donations made on or after January 1, 2007. The per-taxpayer annual cap is $50,000 for taxable years 2018 and after, with $100,000 for a fee simple donation to the Commonwealth. The credit can be transferred and sold, and unused amounts carry forward. Credits of $1 million or more require verification by the Director of Conservation and Recreation.

Tidewater localities protect a 100-foot buffer

The Chesapeake Bay Preservation Act, Va. Code § 62.1-44.15:67 and following, requires the counties, cities, and towns of Tidewater Virginia to build water quality protection into their comprehensive plans, zoning, and subdivision ordinances, and to designate Chesapeake Bay Preservation Areas. Under the Chesapeake Bay Preservation Area Designation and Management Regulations, 9VAC25-830, those areas divide into Resource Protection Areas and Resource Management Areas, and 9VAC25-830-140 makes a 100-foot wide buffer the landward component of the Resource Protection Area, to be retained where it exists and established where it does not. Each Tidewater locality publishes its own criteria, so the local ordinance is the operative document.

Questions

Selling land in Virginia

Do I need a disclosure statement for vacant Virginia land?

No — the Residential Property Disclosure Act does not reach bare ground. Va. Code § 55.1-701 applies the chapter only to transfers by sale, exchange, installment land sales contract, or lease with option to buy of residential real property consisting of not less than one nor more than four dwelling units. A parcel with no dwelling on it does not meet that description. Section 55.1-702 separately excludes transfers by court order, fiduciary transfers, transfers between lineal relatives, and transfers arising from unpaid taxes. Misrepresentation remains actionable regardless.

What will a land use rollback cost me?

Five years of deferred tax, plus the current year at market value, plus interest. Va. Code § 58.1-3237 sets roll-back taxes at the sum of the deferred tax for each of the five most recent complete tax years when land leaves a qualifying agricultural, horticultural, forest, or open space use; the current year is extended on the basis of fair market value. Simple interest runs at a rate the governing body sets, capped at the locality's delinquent tax rate. A buyer who keeps the qualifying use generally avoids triggering it.

How does the land preservation tax credit affect value?

It puts a transferable dollar value on development rights a landowner agrees to give up. Va. Code § 58.1-512 gives a credit equal to 40 percent of the fair market value of land or an interest in land donated for conservation, for donations made on or after January 1, 2007. Because the credit is transferable, a landowner with little Virginia tax liability can sell it. Annual use is capped at $50,000 per taxpayer for taxable years 2018 forward, and credits of $1 million or more need verification by the Director of Conservation and Recreation.

Sources for the figures above

These are secondary references, accurate enough to orient you and not a substitute for the statute or your county. Tax procedure changes; nothing here is legal advice.

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