112 West Main Street
P.O. Box 111
Orange, Virginia 22960
1-540-672-3313

CHAPTER 58 – TAXATION

Sec. 58-416. – Definitions.

The following words and phrases, when used in this article, shall have, for the purposes of this article, the following respective meanings except where the context clearly indicates a different meaning:

Beverage means any alcoholic beverages as defined in Code of Virginia, § 4.1-100, and nonalcoholic beverages, any of which are served as part of a meal, excluding alcoholic beverages sold in factory sealed containers and purchased for off-premises consumption.

Caterer means a person who furnishes food on the premises of another for compensation.

Commissioner of the revenue means the commissioner of the revenue of the county and any of his duly authorized deputies, assistants, employees or agents.

Food means any and all edible refreshments or nourishment, liquid or otherwise, including beverages as herein defined, purchased in or from a restaurant or from a caterer, except snack foods.

Meal means any food as herein defined, other than a beverage, sold for consumption on the premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper or by some other name, and without regard to the manner, time or place of service.

Person means any individual, corporation, company, association, firm, partnership or any group of individuals acting as a unit.

Purchaser means any person who purchases food in or from a restaurant or from a caterer.

Restaurant means:

(1) Any place where food is prepared for service to the public whether on or off the premises, including a delicatessen counter at a grocery store or convenience store selling prepared foods ready for human consumption; or

(2) Any place where food is served to the public.

Examples of a restaurant include, but are not limited to, a dining room, grill, coffee shop, cafeteria, cafe, snack bar, lunch counter, lunchroom, short-order place, tavern, delicatessen, confectionery, bakery, eating house, eatery, drugstore, catering service, lunch wagon or truck, pushcart or other mobile facility that sells food, and a dining facility in a public or private school or college.

Seller means any person who sells food in or from a restaurant or as a caterer.

Snack food means chewing gum, candy, popcorn, peanuts and other nuts, and unopened prepackaged cookies, donuts, crackers, potato chips and other items of essentially the same nature and consumed for essentially the same purpose.

(Ord. of 12-11-2001)

Sec. 58-417. – Levy of tax; amount.

In addition to all other taxes and fees of any kind now or hereafter imposed by law, a tax is hereby levied and imposed on the purchaser of all food served, sold or delivered for human consumption in the unincorporated portions of the county in or from a restaurant, whether prepared in such restaurant or not, or prepared by a caterer. The rate of this tax shall be four percent of the amount paid for such food. In the computation of this tax, any fraction of $0.005 or more shall be treated as $0.01.

(Ord. of 12-11-2001)

Sec. 58-418. – Exemptions.

The following purchases of food shall not be subject to the tax under this article:

(1) Any food or food product purchased for home consumption as defined in the federal Food Stamp Act of 1977, 7 U.S.C. §2012, or amended, except for sandwiches, salad bar items sold from a salad bar, prepackaged single-serving salads consisting primarily of an assortment of vegetables, and non-factory sealed beverages. This exemption does not include hot food or hot food products ready for immediate consumption.

(2) Food and beverages sold through vending machines.

(3) Food for use or consumption by and paid for by the commonwealth, any political subdivision of the commonwealth or the United States.

(4) Food sold by public or private elementary or secondary schools, colleges, and universities to their students or employees.

(5) Food furnished by churches which serve meals for their members as a regular part of their religious observance.

(6) Food furnished by day care centers.

(7) Food furnished by boardinghouses that do not accommodate transients.

(8) Food sold by cafeterias operated by industrial plants for employees only.

(9) Food furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, infirm or handicapped or other extended care facility to patients or residents thereof.

(10) Food furnished by homes for battered women, narcotic addicts, or alcoholics.

(11) Food furnished by a nonprofit charitable organization to elderly, infirm, handicapped or needy persons in their homes or at central locations.

(12) Food provided by private establishments that contract with the appropriate agency of the commonwealth to offer food, food products, or beverages for immediate consumption at concession prices to elderly, infirm, blind, handicapped, or needy persons in their homes or at central locations.

(13) Food furnished by age-restricted apartment complexes or residences with restaurants, not open to the public, where meals are served and fees are charged for such food and beverages and are included in rental fees.

(14) Food sold by volunteer fire departments and rescue squads; nonprofit churches or other religious bodies; educational, charitable, fraternal, or benevolent organizations, on an occasional basis, not exceeding three times per calendar year as a fundraising activity, the gross proceeds of which are to be used by such church, religious body or organization exclusively for nonprofit educational, charitable, benevolent, or religious purposes.

(15) Food furnished by restaurants to employees as part of their compensation when no charge is made to the employee.

(16) Any other sale of food which is exempt from taxation under the Virginia Retail Sales and Use Tax Act, or administrative rules and regulation issued pursuant thereto.

(Ord. of 12-11-2001; Ord. of 10-13-2009(1))

Sec. 58-419. – Tips and service charges.

(a) Where a purchaser provides a tip for an employee or employees of a seller, and the amount of the tip is wholly in the discretion of the purchaser, the tip is not subject to the tax imposed by this article, whether paid in cash to the employee or added to the bill and charged to the purchaser’s account, provided, in the latter case, the full amount of the tip is turned over to the employee by the seller.

(b) An amount or percent, whether designated as a tip or a service charge, that is added to the price of the meal by the seller, and required to be paid by the purchaser, is a part of the selling price of the meal and is subject to the tax imposed by this article.

(Ord. of 12-11-2001)

Sec. 58-420. – Payment and collection of tax.

Every seller of food with respect to which a tax is levied under this article shall collect the amount of tax imposed under this article from the purchaser on whom the same is levied at the time payment for such food becomes due and payable, whether payment is to be made in cash or on credit by means of a credit card or otherwise. The amount of tax owed by the purchaser shall be added to the cost of the food by the seller who shall pay the taxes collected to the county as provided in this article. Taxes collected by the seller shall be held in trust by the seller until remitted to the county.

(Ord. of 12-11-2001)

Sec. 58-421. – Deduction for seller.

For the purpose of compensating sellers for the collection of the tax imposed by this article, every seller shall be allowed three percent of the amount of the tax due and accounted for in the form of a deduction on his monthly return; provided, the full amount shall be due if any part of the payment is delinquent at the time of payment.

(Ord. of 12-11-2001)

Sec. 58-422. – Reports and remittances generally.

Every seller of food with respect to which a tax is levied under this article shall make out a report, upon such forms and setting forth such information as the commissioner of the revenue may prescribe and require, showing the amount of food charges collected and the tax required to be collected, and shall sign and deliver such report to the commissioner of the revenue with a remittance of such tax made payable to the treasurer of the county. It shall be presumed that all food served, sold or delivered in the county in or from a restaurant is taxable under this article and the burden shall be upon the seller of food to establish by records what food is not taxable. Such reports and remittance shall be made on or before the twentieth day of each month, covering the amount of tax collected during the preceding month.

(Ord. of 12-11-2001)

Sec. 58-423. – Preservation of records.

It shall be the duty of any seller of food liable for collection and remittance of the taxes imposed by this article to keep and preserve for a period of three years records showing gross sales of all food and beverages, the amount charged the purchaser for each such purchase, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. The commissioner of the revenue shall have the power to examine such records at reasonable times and without unreasonable interference with the business of the seller for the purpose of administering and enforcing the provisions of this article and to make copies of all or any parts thereof.

(Ord. of 12-11-2001)

Sec. 58-424. – Duty of seller when going out of business.

Whenever any seller required to collect or pay to the county a tax under this article shall cease to operate or otherwise dispose of his business, any tax payable under this article shall become immediately due and payable and such person shall immediately make a report and pay the tax due.

(Ord. of 12-11-2001)

Sec. 58-425. – Advertising payment or absorption of tax prohibited.

No seller shall advertise or hold out to the public in any manner, directly or indirectly, that all or any part of the tax imposed under this article will be paid or absorbed by the seller or anyone else, or that the seller or anyone else will relieve the purchaser of the payment of all or any part of the tax.

(Ord. of 12-11-2001)

Sec. 58-426. – Enforcement; duty of commissioner of the revenue.

It shall be the duty of the commissioner of the revenue to ascertain the name of every seller liable for the collection of the tax imposed by this article who fails, refuses or neglects to collect such tax or to make the reports and remittances required by this article. The commissioner of the revenue shall have all of the enforcement powers as authorized by Code of Virginia, Article 1, Chapter 31 of Title 58.1, for purposes of this article.

(Ord. of 12-11-2001)

Sec. 58-427. – Procedure upon failure to collect, report, etc.

If any seller whose duty it is to do so shall fail or refuse to collect the tax imposed under this article and to make, within the time provided in this article, the reports and remittances mentioned in this article, the commissioner of the Revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the commissioner of the revenue shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any seller who has failed or refused to collect such tax and to make such report and remittance, he shall proceed to determine and assess against such seller the tax and penalties provided for by this article and shall notify such seller, by registered mail sent to his last known place of address, of the total amount of such tax and penalties and the total amount thereof shall be payable within ten days from the date such notice is sent.

(Ord. of 12-11-2001)

Sec. 58-428. – Collection.

The treasurer shall have the power and the duty of collecting the taxes imposed and levied hereunder and shall cause the same to be paid into the general treasury for the county.

(Ord. of 12-11-2001)

Sec. 58-429. – Penalty for late remittance or false return.

If any seller whose duty it is to do so shall fail or refuse to file any report required by this article or to remit the tax required to be collected and paid under this article within the time and in the amount specified in this article, there shall be added to such tax by the commissioner of the revenue a penalty of:

1. For failure to remit the tax when due: ten percent of the total amount of the tax owed if the failure is not for more than 30 days, with an additional penalty of five percent of the total amount of the tax owed for each additional 30 days or fraction thereof during which the failure continues, such penalty not to exceed 25 percent of the tax owed, provided, however, the minimum penalty shall be $10.00.

2. For failure to file a report when due: ten percent of the tax assessable on such return or $10, whichever is greater; provided, however, that the penalty shall in no case exceed the amount of the tax assessable.

(Ord. of 12-11-2001; Ord. of 04/26/16) See Va. Code §58.1-3916

Sec. 58-430. – Violations of article.

Any person required to collect, account for and pay over tax under this article, who willfully fails to collect or truthfully account for and pay over such tax, and any person who willfully evades or attempts to evade any such tax or payment thereof, shall be guilty of a class 1 misdemeanor if the amount of the tax lawfully assessed in connection with the return is more than $1,000; and a Class 3 misdemeanor if the amount of the tax lawfully assessed in connection with the return is $1,000 or less. Conviction of such violation shall not relieve any person from the payment, collection or remittance of the taxes or penalties provided for in this article. Any agreement by any person to pay the taxes or penalties provided for in this article by a series of installment payments shall not relieve any person of criminal liability for violation of this article until the full amount of taxes and penalties agreed to be paid by such person is received by the treasurer. Each failure, refusal, neglect or violation, and each day’s continuance thereof, shall constitute a separate offense.

(Ord. of 12-11-2001; Ord. of 04/26/16) See Va. Code §58.1-3916.1

CHAPTER 58 – TAXATION

Sec. 58-381. – Findings.

The county finds that, because of the proliferation of development activities, a valid public interest exists in the preservation of real estate devoted to agricultural, forest and horticultural uses within its boundaries and ordains that such real estate shall be taxed in accordance with the provisions of Code of Virginia, § 58.1-3230 et seq.

(Ord. of 6-27-2006)

Sec. 58-382. – Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

“Real estate devoted to agricultural use” shall mean real estate 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 in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), or 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. Prior, discontinued use of property shall not be considered in determining its current use. Real estate upon which recreational activities are conducted for a profit or otherwise shall be considered real estate devoted to agricultural use as long as the recreational activities conducted on such real estate do not change the character of the real estate so that it does not meet the uniform standards prescribed by the Commissioner. Real property that has been designated as devoted to agricultural use shall not lose such designation solely because a portion of the property is being used for a different purpose pursuant to a special use permit or otherwise allowed by zoning, provided that the property, excluding such portion, otherwise meets all the requirements for such designation. The portion of the property being used for a different purpose pursuant to a special use permit or otherwise allowed by zoning shall be deemed a separate piece of property from the remaining property for purposes of assessment. The presence of utility lines on real property shall not be considered in determining whether the property, including the portion where the utility lines are located, is devoted to agricultural use. In determining whether real property is devoted to agricultural use, zoning designations and special use permits for the property shall not be the sole considerations.

“Real estate devoted to horticultural use” shall mean real estate devoted to the bona fide production for sale of fruits of all kinds, including grapes, nuts, and berries; vegetables; and nursery and floral products under uniform standards prescribed by the Commissioner of Agriculture and Consumer Services in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), or real estate 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. Prior, discontinued use of property shall not be considered in determining its current use. Real estate upon which recreational activities are conducted for profit or otherwise shall be considered real estate devoted to horticultural use as long as the recreational activities conducted on such real estate do not change the character of the real estate so that it does not meet the uniform standards prescribed by the Commissioner. Real property that has been designated as devoted to horticultural use shall not lose such designation solely because a portion of the property is being used for a different purpose pursuant to a special use permit or otherwise allowed by zoning, provided that the property, excluding such portion, otherwise meets all the requirements for such designation. The portion of the property being used for a different purpose pursuant to a special use permit or otherwise allowed by zoning shall be deemed a separate piece of property from the remaining property for purposes of assessment. The presence of utility lines on real property shall not be considered in determining whether the property, including the portion where the utility lines are located, is devoted to horticultural use. In determining whether real property is devoted to horticultural use, zoning designations and special use permits for the property shall not be the sole considerations.

“Real estate devoted to forest use” shall mean land, including the standing timber and trees thereon, 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 pursuant to the authority set out in § 58.1-3240 and in accordance with the Administrative Process Act (§ 2.2-4000 et seq.). Prior, discontinued use of property shall not be considered in determining its current use. Real estate upon which recreational activities are conducted for profit, or otherwise, shall still be considered real estate devoted to forest use as long as the recreational activities conducted on such real estate do not change the character of the real estate so that it no longer constitutes a forest area under standards prescribed by the State Forester pursuant to the authority set out in § 58.1-3240. Real property that has been designated as devoted to forest use shall not lose such designation solely because a portion of the property is being used for a different purpose pursuant to a special use permit or is otherwise allowed by zoning, provided that the property, excluding such portion, otherwise meets all the requirements for such designation. The portion of the property being used for a different purpose pursuant to a special use permit or otherwise allowed by zoning shall be deemed a separate piece of property from the remaining property for purposes of assessment. The presence of utility lines on real property shall not be considered in determining whether the property, including the portion where the utility lines are located, is devoted to forest use. In determining whether real property is devoted to forest use, zoning designations and special use permits for the property shall not be the sole considerations.

(Ord. of 6-27-2006; Ord. of 10-13-2009(1); Ord. 07-10-12)

Sec. 58-383. – Application for classification; deadline.

(a) The owner of any real estate meeting the criteria set forth in Code of Virginia, §§ 58.1-3230 and 58.1-3233(2), may apply to the local assessing officer for the classification, assessment and taxation of such property for the next succeeding tax year on the basis of its use under the procedure set forth in Code of Virginia, § 58.1-3236.

(b) Such application shall be filed not later than 60 days prior to the tax year in which such assessment is sought. If such application is sought in the year in which there is a general reassessment, this deadline shall be extended to 30 days after the assessment notice is mailed. Such application may be filed any time within such 60-day period immediately preceding the beginning of the next tax year in which such assessment is sought upon the payment of a late filing fee as provided in subsection 58-386(b).

(c) Such application shall be on forms provided by the state department of taxation and supplied by the local assessing officer and shall include such additional information, including but not limited to schedules, photographs, soil maps, geological surveys, soil conservation plans and the like as may be required by the local assessing officer and available to the applicant.

(Ord. of 6-27-2006)

Sec. 58-384. – Method of evaluating.

(a) In valuing real estate for purposes of taxation by the county pursuant to this article, the commissioner of the revenue or a duly appointed assessor shall consider only those indicia of value which such real estate has for agricultural, forest and horticultural use and real estate taxes for such jurisdiction shall be extended upon the value so determined. In addition to use of his personal knowledge, judgment and experience as to the value of real estate in agricultural, forest and horticultural use, he shall, in arriving at the value of such land, consider available evidence of agricultural, forest and horticultural capability, and the recommendations of value of such real estate as made by the state land evaluation advisory council.

(b) In determining the total area of real estate actively devoted to agricultural, forest and horticultural use, there shall be included the area of all real estate under barns, sheds, silos, cribs, greenhouses, public recreation facilities and like structures, lakes, dams, ponds, streams, irrigation ditches and like facilities; but real estate under and such additional real estate as may be actually used in connection with the farmhouse or home or any other structure not related to such special use shall be excluded in determining such total area.

(c) All structures which are located on real estate in agricultural, forest and horticultural use and the farmhouse or home or any other structure not related to such special use and the real estate on which the farmhouse or home or such other structure is located, together with the additional real estate used in connection therewith, shall be valued, assessed and taxed by the same standards, methods and procedures as other taxable structures and other real estate in the locality.

(d) In addition, such real estate in agricultural, forest and horticultural use shall be evaluated on the basis of fair market value as applied to other real estate in the taxing jurisdiction; and land book records shall be maintained to show both the use value and the fair market value of such real estate.

(Ord. of 6-27-2006)

Sec. 58-385. – Judgment of local officer.

In the absence of the data referred to in section 58-383, the local assessing officer shall use his personal knowledge, judgment and experience as to the value of real estate and agricultural, forest and horticultural use and may request an opinion from either the commissioner of agriculture and consumer services, the director of the state department of conservation and recreation, or the state forester, as may be directed in the Code of Virginia, § 58.1-3233. Upon the refusal of such officers to issue an opinion or in the event of an unfavorable opinion which does not comport with standards set forth by the respective director, the party aggrieved may seek relief from any court of record wherein the real estate in question is located. If the court finds in his favor, it may issue an order which shall serve in lieu of an opinion for the purpose of this article.

(Ord. of 6-27-2006)

Sec. 58-386. – Filing of application.

(a) A separate application shall be filed for each parcel on the land book. No application shall be accepted or approved if, at the time of the filing of such application, there are delinquent real estate taxes owed to the county on such land.

(b) Each such application filed more than 60 days prior to the beginning of the tax year in which the assessment is sought shall be accompanied by a fee of $15.00 or $0.15 an acre, whichever is more; and each such application filed 60 or less days before the beginning of the tax year in which such assessment is sought shall be accompanied by a fee of $15.00 or $0.15 an acre, whichever is more, plus a late filing fee of $15.00 or $0.15, whichever is more.

(c) Each year the applicant shall file, if he wishes his land to be assessed under this article, a revalidation application on forms provided, which application shall be filed not later than 60 days prior to the beginning of the year for which assessment is sought or with the 60-day period upon the payment of a late filing fee. If such application is sought in a year in which there is a general reassessment, this deadline shall be extended to 30 days after the assessment notice is mailed. The revalidation application shall require no revalidation fee if filed not later than 60 days prior to the year in which the assessment I sought; however, if such revalidation application is filed less than 60 days prior to the year for which assessment is sought, the application shall be accompanied by a late revalidation fee of $15.00 or $0.15 per acre, whichever is more. A revalidation fee equal to the fee required with the filing of an initial application as provided by subsection (b) of this section shall accompany the revalidation application filed every sixth year.

(Ord. of 6-27-2006)

Sec. 58-387. – Determination of eligibility.

Promptly upon receipt of any application under this article, the local assessing officer shall determine whether the subject property meets the criteria for taxation under this article. If the local assessing officer determines that the subject property does not meet such criteria, he shall determine the value of such property for its qualifying use, as well as its fair market value.

(Ord. of 6-27-2006)

Sec. 58-388. – Determination of applicability.

In determining whether the subject property meets the criteria for agricultural use, forest use or horticultural use, the local assessing officer may request an opinion from the commissioner of agriculture and consumer services, the director of the department of conservation and recreation, and the state forester. Upon the refusal of any of these individuals to issue an opinion, or in the event of an unfavorable opinion which does not comport with standards set forth by the commissioner, the party aggrieved may seek relief from any court of record wherein the real estate in question is located. If the court finds in his favor, it may issue an order which shall serve in lieu of an opinion for the purposes of this article.

(Ord. of 6-27-2006)

Sec. 58-389. – Placement of value on land book.

The use value and fair market value of any qualifying property under this article shall be placed on the land book before delivery to the treasurer, and the tax for the next succeeding tax year shall be extended for the use value. Such use value shall be reassessed from time to time in accordance with the policies and recommendations of the state land evaluation advisory council, and to comport with more accurate information as it becomes available regarding each piece of land.

(Ord. of 6-27-2006)

Sec. 58-390. – Roll-back tax imposed.

There is imposed a roll-back tax, with interest, in such amounts as may be determined under Code of Virginia, § 58.1-3237, upon any property as to which the use changes to a nonqualifying use.

(Ord. of 6-27-2006)

Sec. 58-391. – Change in use or zoning of real estate assessed under article; roll-back taxes.

(a) When real estate qualifies for assessment and taxation on the basis of use under this article, and the use by which it qualified changes to a nonqualifying use, or the zoning of the real estate is changed to a more intensive use at the request of the owner or his agent, it shall be subject to additional taxes, referred to in this section as roll-back taxes. Such additional taxes shall only be assessed against that portion such real estate which no longer qualifies for assessment and taxation on the basis of use of zoning. Liability for roll-back taxes shall attach and be paid to the treasurer only if the amount of due exceeds $10.00.

(b) The roll-back tax shall be equal to the sum of the deferred tax for each of the five most recent complete tax years, including simple interest on such roll-back taxes at a rate set by the board of supervisors, no greater than the rate applicable to delinquent taxes in the county pursuant to Code of Virginia, § 58.1-3916, for each of the tax years. The deferred tax for each year shall be equal to the difference between the tax levied and the tax that would have been levied based on the fair market value assessment of the real estate for that year. In addition, the taxes for the current year shall be extended on the basis of fair market value which may be accomplished by means of a supplemental assessment based upon the difference between the use value and the fair market value.

(c) Liability to the roll-back taxes shall attach when a change in use occurs, or a change in zoning of the real estate to a more intensive use at the request of the owner or his agent occurs. Liability to the roll-back taxes shall not attach when a change in ownership of the title takes place if the new owner does not rezone the real estate to a more intensive use and continues the real estate in the use for which it is classified under the conditions prescribed in this article. The owner of any real estate which has been zoned to more intensive use at the request of the owner or his agent as provided in subsection (d) of this section, or otherwise subject to or liable for roll-back taxes, shall, within 60 days following such change in use or zoning, report such change to the commissioner of the revenue or other assessing officer on such forms as may be prescribed. The commissioner shall forthwith determine and assess the roll-back tax, which shall be assessed against and paid by the owner of the property at the time the change in use which no longer qualifies occurs, or at the time of the zoning of the real estate to a more intensive use at the request of the owner or his agent occurs, and shall be paid to the treasurer within 30 days of the assessment. If the amount due is not paid by the due date, the treasurer shall impose a penalty and interest on the amount of the roll-back tax, including interest for prior years. Such penalty and interest shall be imposed in accordance with Code of Virginia, §§ 58.1-3915 and 58.1-3916.

(d) Real property zoned to a more intensive use, at the request of the owner or his agent, shall be subject to and liable for the roll-back tax at the time such zoning is changed. The roll-back tax shall be levied and collected from the owner of the real estate in accordance with subsection (c). Real property zoned to a more intensive use before July 1, 1988, at the request of the owner or his agent shall be subject to and liable for the roll-back tax at the time the qualifying use is changed to a nonqualifying use. Real property zoned to a more intensive use at the request of the owner or his agent after July 1, 1988, shall be subject to and liable for the roll-back tax at the time of such zoning. The roll-back tax, plus interest calculated in accordance with subsection (b), shall be levied and collected at the time such property was rezoned. For property rezoned after July 1, 1988, but before July 1, 1992, no penalties or interest, except as provided in subsection (b), shall be assessed, provided the roll-back tax is paid on or before October 1, 1992. No real property rezoned to a more intensive use at the request of the owner or his agent shall be eligible for taxation and assessment under this article; but these provisions shall not be applicable to any rezoning which is required for the establishment, continuation or expansion of a qualifying use. If the property is subsequently rezoned to agricultural, horticultural or open space, it shall be eligible for consideration for assessment and taxation under this article only after three years have passed since the rezoning was effective. However, the owner of any real property that qualified for assessment and taxation on the basis of use, and whose real property was rezoned to a more intensive use at the owner’s request prior to 1980, may be eligible for taxation and assessment under this article provided the owner applies for rezoning to agricultural, horticultural, open space or forest use. The real property shall be eligible for assessment and taxation on the basis of the qualifying use for the tax year following the effective date of the rezoning. If any such real property is subsequently rezoned to a more intensive use at the owner’s request, within five years from the date the property was initially rezoned to a qualifying use under this section, the owner shall be liable for roll-back taxes when the property is rezoned to a more intensive use. Additionally, the owner shall be subject to a penalty equal to 50 percent of the roll-back taxes due as determined under subsection (b).

(e) If real estate annexed by a city and granted use value assessment and taxation becomes subject to roll-back taxes, and such real estate likewise has been granted use value assessment and taxation by the county prior to annexation, the city shall collect roll-back taxes and interest for the maximum period allowed under this section and shall return to the county a share of such taxes and interest proportionate to the amount of such period, if any, for which the real estate was situated in the county.

(Ord. of 6-27-2006)

Sec. 58-392. – Change in use; penalty for failure to report.

(a) The owner of any real estate liable for roll-back taxes shall report to the commissioner of the revenue on forms to be prescribed by the commissioner any change in the use of such property to non-qualifying use and shall pay the roll-back tax then due. On failure so to report and pay within 60 days following such change in use, such owner shall be liable for an additional penalty equal to ten percent of the amount of the roll-back tax and interest, which penalty shall be collected as a part of the tax. In addition to such penalty, there is imposed interest on such roll-back taxes at the same interest rate applicable to delinquent taxes in the county at the time such failure occurs for each month or fraction during which the failure continues.

(b) Any person making material misstatement of fact in any application filed pursuant to this article shall be liable for all taxes, in such amounts and at such time as if such property had been assessed on the basis of fair market value as applied to other real estate in the taxing jurisdiction, together with interest and penalties. If such material misstatement was made with the intent to defraud the county, he shall be further assessed with an additional penalty of 100 percent of such unpaid taxes.

(Ord. of 6-27-2006)

Sec. 58-393. – Applicability of state law.

The provisions of Code of Virginia, title 58.1 applicable to local levies and real estate assessment and taxation shall be applicable to assessments and taxation under this article, including, without limitation, provisions relating to tax liens and the correction of erroneous assessments; and for such purposes the roll-back taxes shall be considered to be deferred real estate taxes.

(Ord. of 6-27-2006)

Secs. 58-394—58-415. – Reserved.

CHAPTER 58 – TAXATION

DIVISION 1. – GENERALLY

Secs. 58-326—58-345. – Reserved.

 

DIVISION 2. – UTILITY COMPANIES

Sec. 58-346. – Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Gross receipts means the gross receipts derived from business within the county included in the total gross receipts utilized by the state corporation commission in making assessments under Code of Virginia, § 58.1-2633. Gross receipts shall be ascertained as of December 31 of each year, and the tax for the current calendar year shall be based on receipts for the preceding calendar year.

(Ord. of 5-12-1981)

Sec. 58-347. – Levied.

For each and every year, beginning on January 1 and ending on the following December 31, until otherwise changed, there is levied upon any telephone or telegraph company, as defined by Code of Virginia, § 58.1-2600 et seq., and upon every corporation providing heat, light and power within the county, as defined by Code of Virginia, § 58.1-2600 et seq., for the privilege of doing business within the county, a license tax equal to one-half of one percent of the gross receipts derived from such business in the county.

(Ord. of 5-12-1981)

Sec. 58-348. – Assessment; due date; penalty for failure to pay.

(a) The tax due under this division shall be assessed on January 1 of each calendar year.

(b) The tax assessed under this division shall be due and payable to the county treasurer on or before June 1 following the date on which the taxes are assessed.

(c) Any person failing to pay such taxes into the county treasury within the time prescribed in this division shall incur a penalty as provided by Code of Virginia, § 58.1-3915, and interest, as provided by Code of Virginia, § 58.1-3918.

(Ord. of 5-12-1981)

Secs. 58-349—58-380. – Reserved.

CHAPTER 58 – TAXATION

Sec. 58-286. – Imposed.

There is imposed a county franchise tax upon any bank located within the county, but outside the corporate limits of any town within the county, upon the net capital of such bank as defined by Code of Virginia, § 58.1-205 at the rate of 80 percent of the state rate of taxation for each $100.00 of the net capital of such bank established by Code of Virginia, § 58.1-1204.

(Ord. of 5-13-1980)

Sec. 58-287. – Tax on branches.

If any bank located within the boundaries of this county but outside any incorporated town located in the county is not the principal office but is a branch, extension or affiliate of the principal office, the tax upon such branch shall be upon only such proportion of the taxable value of the net capital as the total deposits of such bank or offices located inside the county bears to the total deposits of the bank as of the end of the preceding year.

(Ord. of 5-13-1980)

Sec. 58-288. – Filing of return.

On or after January 1 of each year, but not later than March 1 of any such year; all bank’s principal offices located within this county but outside any incorporated town in the county shall prepare and file with the commissioner of the revenue the return as provided by Code of Virginia, § 58.1-1207, in duplicate, which shall set forth the tax on net capital computed pursuant to Code of Virginia, § 58.1-1200 et seq. The commissioner of the revenue shall certify a copy of such filing of the bank’s return and schedule and forthwith transmit such certified copy to the state department of taxation.

(Ord. of 5-13-1980)

Sec. 58-289. – Filing of real estate deduction schedule.

If the principal office of a bank is located outside of the boundaries of this county or within any town located in the county and such bank has branch offices located within this county, in addition to the filing requirements set forth in section 58-288, any bank conducting such branch business shall file with the commissioner of the revenue of this county a copy of the real estate deduction schedule, apportionment and other items which are required by Code of Virginia, §§ 58.1-1207, 58.1-1211 and 58.1-1212.

(Ord. of 5-13-1980)

Sec. 58-290. – Time of payment.

Each bank on or before June 1 of each year shall pay into the county treasurer’s office all taxes imposed pursuant to this article.

(Ord. of 5-13-1980)

Sec. 58-291. – Penalty upon bank for failure to comply.

Any bank which fails to file a return or pay the tax required by this article or fails to comply with any other provision of this article shall be subject to a penalty of five percent of the tax due. If the commissioner of the revenue is satisfied that such failure is due to providential or other good cause, such return and payment of tax shall be accepted exclusive of such penalty, but with interest determined in accordance with Code of Virginia, § 58.1-15.

Secs. 58-292—58-325. – Reserved.

CHAPTER 58 – TAXATION

 

Sec. 58-251. – Imposed.

Pursuant to Code of Virginia, § 58.1-3819, there is imposed a transient occupancy tax on hotels, motels, boardinghouses, travel campgrounds and other facilities offering guest rooms in the county. The amount of the tax shall be two percent of the amount of charge for the occupancy of any room or space occupied. The tax imposed under this section shall not apply to rooms or spaces rented for continuous occupancy by the same individual or group for 30 or more days in hotels, motels, boardinghouses and travel campgrounds.

(Ord. of 5-13-1986)

Sec. 58-252. – Collection.

(a) The tax imposed by this article shall be collected by each hotel, motel, boardinghouse, travel campground and other facilities offering guest rooms operating in the county and remitted to the county treasurer on a quarterly basis not later than the end of the month following the end of each calendar quarter on forms provided by the treasurer. Such tax shall be deemed to be held in trust by the person required to collect the tax until such tax is remitted to the treasurer.

(b) The treasurer shall allow a commission of three percent for the collection of such tax, but no commission shall be allowed if the amount due is delinquent.

(Ord. of 5-13-1986, § 1)

Sec. 58-253. – Proceedings for failure to pay tax.

If any person shall fail or refuse to collect the tax imposed by this article and to make, within the time provided in this article, the reports and remittances required in this article, the commissioner of the revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the commissioner shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax, and to make such report and remittance, he shall proceed to determine and assess against such person such tax, penalty and interest as provided for in this article, and shall notify such person, by registered mail sent to his last known place of address, the amount of such tax, interest and penalty; and the total amount shall be payable within ten days from the date of the mailing of such notice.

(Ord. of 5-13-1986, § 2)

Sec. 58-254. – Remission upon going out of business.

Whenever any person required to collect and remit the tax imposed and levied by this article shall go out of business, dispose of his business or otherwise cease to operate, all of such taxes collected shall be reported and remitted to the county treasurer within 30 days.

(Ord. of 5-13-1986, § 3)

Sec. 58-255. – Penalty for violation of article.

Any person violating or failing to comply with any of the provisions of this article shall be punished, upon conviction, as for a class 1 misdemeanor. Such conviction shall not relieve any such person from the payment, collection or remittance of the tax as provided in this article.

(Ord. of 5-13-1986, § 4)

Sec. 58-256 – Short Term Rental Registry

A. Definitions.

For the purposes of this section, the following definitions shall apply:

Operator means the proprietor of any dwelling, lodging, or sleeping accommodation offered as a short-term rental, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other possessory capacity.

Short-term rental means the provision of a room or space that is suitable for, or is intended for, occupancy for dwelling, lodging, or sleeping purposes, for a period of fewer than thirty (30) consecutive days, in exchange for the charge for the occupancy.

Property(ies) means real estate offered by an owner or operator as a short-term rental.

B. Registry of property offered as short-term rental; Duty to register.

There is hereby established a short-term rental registry for owners or operators with property offered or used as short-term rental within the County and outside any incorporated towns within the County. The registration must include the name, residence, business address of the owner and/or operator, phone number, other contact information, and the addresses of all property(ies) within Orange County and outside any incorporated towns, offered for short-term rental. There shall be no fee for such registration. Payment of transient occupancy taxes shall be deemed registration, as required by this paragraph.

C. Registration exemptions.

The following persons are exempted from the registration requirement:

1) Any person who is licensed by the Commonwealth of Virginia Real Estate Board;

2) A property owner who is represented by a real estate professional licensed by the Commonwealth of Virginia Real Estate Board;

3) A person registered pursuant to the Virginia Real Estate Time Share Act of the Code of Virginia, 1950, as amended (Va. Code §55-360 et seq.);

4) A person licensed or registered with the Virginia Department of Health related to the provision of room or space for lodging, provided evidence of such other licensing or registering be presented to the Commissioner of the Revenue; or

5) Persons owning/operating a property previously licensed or approved as a hotel, motel, campground, or a bed and breakfast establishment.

Should any such registration or licensing cease or change, the person shall forthwith register on the short-term rental registry, as required in Subsection B.

D. Penalties.

1) If an owner/operator who is required to register under this ordinance fails to do so, and offers such property for rent, or rents such property, he/she shall be subject to a fine of $500. A separate offense shall be deemed committed each day during or on which a property is offered or used as a short-term rental without registration and after written notice of such violation. Unless and until the owner/operator pays the fine and registers the property, such person shall not continue to offer any property for short-term rental.

2) Upon written notice of two or more violations of the registration requirement as it relates to a specific property, the owner/operator of such property may be prohibited from registering said property and from offering or using such property as a short-term rental for one calendar year from the date of the last notification of violation.

E. Administration and enforcement.

It shall be the responsibility of the Orange County Commissioner of the Revenue, or his/her designee, to administer, interpret, and enforce the provisions of this section. The Commissioner of the Revenue shall send a written notice of violation to the operator, and property owner, if different, by mail to the mailing address listed in the real estate records. The Commissioner of the Revenue may seek the assistance of the County Attorney with respect to enforcement of this section, as needed.

(Ord. of 10/09/2018 – Effective 11/01/2018)

Secs. 58-257—58-285. – Reserved.

CHAPTER 58 – TAXATION

Secs. 58-166—58-185. – Reserved.

Sec. 58-186. – Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Commercial or industrial user means the owner or tenant of property used for commercial or industrial purposes, including the owner of master-metered apartment buildings, who pays for utility service for such property.

Purchaser means every person who purchases a utility service.

Residential user means the owner or tenant of private residential property or tenant of an apartment who pays for utility service in or for such property.

Seller means every person, whether a public service corporation or not, who sells or furnishes utility service of electricity and telephone.

Utility service means local telephone service, excluding long distance messages and electric services furnished within the boundaries of the county.

(Ord. of 6-12-1990, § 1)

Sec. 58-187. – Electric service.

Effective with the first bill for electric energy rendered for meter readings on or after January 1, 2001 the rate of tax on the electric energy delivered to an ultimate consumer shall be as follows:

(1) Residential consumers. Such tax shall be 20 percent times the minimum monthly charge imposed by the service provider plus the rate of $.016335 on each kilowatt hour [kwh] delivered monthly to residential customers by the service provider not to exceed $3.00 monthly.

(2) Nonresidential consumers: Such tax on nonresidential consumers shall be at the rates per month for the classes of nonresidential consumers as set forth below:

Commercial/industrial consumers. Such tax shall be 20 percent times the minimum monthly charge imposed by the service provider plus the rate of $.017324 on each kilowatt hour [kwh] delivered monthly, not to exceed $15.00 per month.

(Ord. of 6-12-1990, § 2(a); Ord. of 1-1-2001)

Sec. 58-188. – Reserved.

Sec. 58-189. – Telephone service—Residential purposes.

(a) On purchasers of telephone service for residential purposes, the tax shall be in the amount of 20 percent of the charge (exclusive of any federal or state tax or mileage charges) made by the seller against the purchaser with respect to such residential telephone service. In case any monthly bill submitted by the seller for telephone service shall exceed $15.00, there shall be no tax computed on so much of such bill as shall exceed $15.00.

(b) On mobile service consumers with a service address within the county, including the limits of the Town of Gordonsville, but excluding the limits of the Town of Orange, the tax shall be ten percent of the monthly gross charge; provided, however, that in the event a monthly bill submitted by the mobile service provider exceeds $30.00 in gross charges, there shall be no tax computed on the amount of the bill in excess of $30.00.

(Ord. of 6-12-1990, § 2(c); Ord. of 4-25-2000(2); Ord. of 7-9-2002)

Sec. 58-190. – Same—Commercial or industrial purposes.

On purchasers of telephone service for commercial or industrial purposes, the tax shall be in the amount of 20 percent of the charge (exclusive of any federal or state tax or mileage charges) made by the seller against the purchaser with respect to such local telephone service and equipment; however, in case any monthly bill submitted by the seller for telephone service shall exceed $75.00, there shall be no tax computed on so much of such bill as shall exceed $75.00.

(Ord. of 6-12-1990, § 2)

Sec. 58-191. – Submittal of bills.

Bills shall be considered monthly bills if rendered 12 times annually with each bill covering a period of approximately one month or a portion of a month. If bills for utility services are submitted less frequently than monthly, covering periods longer than one month, the maximum amount of such bills which shall be subject to the tax imposed and levied by this division shall be increased by multiplying the appropriate maximum fixed by section 58-187 for the utility service involved by the number of months of service covered by such bills.

(Ord. of 6-12-1990, § 3)

Sec. 58-192. – Application to telephone service.

The tax imposed and levied by this division on purchasers with respect to telephone service shall apply to all charges made for local telephone exchange service except as follows:

(1) Coin box telephone. The total amount of the guaranteed charge on each bill rendered for semipublic coin box telephone service shall be included in the basis for the tax with respect to the purchaser of such service, but no other tax shall be imposed on telephone service paid for by inserting coins in coin-operated telephones.

(2) Flat rate service. With respect to flat rate service, the tax shall apply to only the amount payable for local area service and shall not apply to any specific charge for calls to points outside the county or to any general charge or rate differential payable for the privilege of calling points outside the county or for mileage service charges.

(3) Message rate service. Where purchasers of telephone service are charged on a message rate basis, the tax shall apply only to the basic charge for such service and shall not apply to any charge for additional message units.

(Ord. of 6-12-1990, § 4)

Sec. 58-193. – Duties of seller generally.

(a) It shall be the duty of every seller acting as the tax collection medium or agency for the county to collect from the purchaser for use of the county the tax imposed and levied by this division at the time of collecting the purchase price charged for the service; and the taxes collected during each calendar month or billing period shall be reported and paid by each seller to the treasurer of the county by the last day of the second calendar month thereafter, together with the name and address of any purchaser who has refused to pay the tax.

(b) In all cases where the seller collects the price for utility service in stated periods, the tax imposed and levied for and by this division shall be computed on the amount of purchase during the month or period according to each bill rendered, provided the amount of tax to be collected shall be the nearest whole cent to the amount computed.

(Ord. of 6-12-1990, § 5)

Sec. 58-194. – Records to be kept by seller.

Each seller shall keep complete records showing all purchasers of utility service in the county, which records shall show the price charged against each purchaser with respect to each purchase, the date of purchase and the date of payment, and the amount of tax imposed pursuant to this division. Such records shall be kept open for inspection by the duly authorized agents of the county during regular business hours on business days; and the duly authorized agents of the county shall have the right, power and authority to make such transcript of the records during such time as they may desire.

(Ord. of 6-12-1990, § 6)

Sec. 58-195. – Exemptions.

(a) The United States of America; diplomatic personnel exempted by the laws of the United States; the state and its political subdivisions, boards, commissions, authorities and agencies; volunteer fire companies and volunteer rescue squads are exempt from the payment of the tax imposed and levied by this division with respect to the purchase of utility services used by such governmental agencies.

(b) Purchasers of utility services sold within the boundaries of the Town of Gordonsville and the Town of Orange as now established or as may be hereafter established are exempt from the payment of the tax imposed and levied by this division.

(Ord. of 6-12-1990, § 7)

Sec. 58-196. – Collection of tax.

The county treasurer shall be charged with the power and duty of collecting the taxes imposed and levied under this division.

(Ord. of 6-12-1990, § 8)

Sec. 58-197. – Forms for reports.

The county treasurer may prescribe forms for filing of any report or the payment of any funds set forth in this division.

(Ord. of 6-12-1990, § 9)

Sec. 58-198. – Extension of time for filing return.

The county treasurer may extend, for good cause shown, the time of filing any return required to be filed by the provisions of this division; however, no such extensions shall exceed a period of 90 days.

(Ord. of 6-12-1990, § 10)

Sec. 58-199. – Penalty; continuing violations; conviction not to excuse payment of tax.

Any purchaser failing, refusing or neglecting to pay the tax imposed or levied by this division; any seller violating the provisions of this division; and any officer, agent or employee of any seller violating the provisions of this division shall be guilty of a misdemeanor and shall upon conviction be subject to a fine of not more than $100.00. Each failure, refusal, neglect or violation and each day’s continuance shall constitute a separate offense. Such conviction shall not relieve any person from the payment, collection and remittance of such tax as provided by this division.

(Ord. of 6-12-1990, § 11)

Secs. 58-200—58-250. – Reserved.

DIVISION 1. – GENERALLY

Sec. 58-86. – Requirement for Triennial Renewal of Tax Exemption Status

Pursuant to §58.1-3605 of the Code of Virginia, all tax-exempt organizations, except for governments, shall file a triennial application with the Commissioner of the Revenue’s Office in order to continue said tax-exempt status.

(Ordinance of 09-24-2019)

Secs. 58-87—58-105. – Reserved.

 

DIVISION 2. – CERTIFIED POLLUTION CONTROL EQUIPMENT AND FACILITIES

Sec. 58-106. – Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Certified pollution control equipment and facilities means any real or personal property, equipment, facilities or devices used primarily for the purpose of abating or preventing pollution of the atmosphere or waters of the county, and which the state certifying authority having jurisdiction with respect to such property has certified to the state department of taxation as having been constructed, reconstructed, erected or acquired in conformity with the state program or requirements for abatement or control of water or atmosphere pollution or contamination. For all tax years beginning on or after January 1, 2011, such property shall not include the land on which such equipment or facilities are located.

State certifying authority means the state water control board, for water pollution; the state air pollution control board, for air pollution; the state department of mines, minerals and energy, for coal, oil and gas production, including gas, natural gas and coalbed methane gas; and the state waste management board, for waste disposal facilities, and shall include any interstate agency authorized to act in place of a certifying authority of the state.

(Ord. of 12-9-1975, §§ 1, 2; Ord. of 10-13-2009(1))

Sec. 58-107. – Separate classification.

Certified pollution control equipment and facilities are declared to be a separate class of property and shall constitute a classification for local taxation separate from other such classification of real or personal property and such property.

(Ord. of 12-9-1975, § 2)

Sec. 58-108. – Exemption.

Certified pollution control equipment and facilities shall be exempt from all county taxes, including taxes upon the sale, purchase or use of such equipment and facilities.

(Ord. of 12-9-1975, § 2)

Secs. 58-109—58-130. – Reserved.

 

DIVISION 3. – EXEMPTIONS FOR CERTAIN ELDERLY AND DISABLED PERSONS

Sec. 58-131. – Authorized exemptions.

A real estate tax exemption is provided for qualified property owners who are 65 years of age or older or who are permanently and totally disabled in accordance with the provisions of Code of Virginia, §§ 58.1-3210 through 58.1-3217.

The treasurer shall enclose written notice, in each real estate tax bill, of the terms and conditions of this local real estate tax exemption program. The treasurer shall also employ any other reasonable means necessary to notify residents of the county, city or town about the terms and conditions of the real estate tax exemption or deferral program for elderly and handicapped residents of the county, city or town.

(Ord. of 8-10-1993, § 1; Ord. 01-13-2015)

Sec. 58-132. – Administration.

The exemption shall be administered by the commissioner of the revenue in accordance with the general provisions of Code of Virginia, §§ 58.1-3210 through 58.1-3217. The commissioner of the revenue is authorized and empowered to prescribe, adopt, promulgate and enforce rules and regulations in conformity with the general provisions of such code sections, including the requirements of answers under oath, as may be reasonably necessary to determine qualifications for exemption as specified by this division. The commissioner of the revenue may require the production of certified tax returns and appraisal reports to establish combined income and net combined financial worth.

(Ord. of 8-10-1993, § 2)

Sec. 58-133. – Qualifications for grant of exemption.

The exemption provided in this division shall be granted to persons who meet the following provisions:

(1) The title to the property for which the exemption is claimed is held, or partially held, on January 1 of the taxable year by the eligible person claiming the exemption, and who is at least 65 or is permanently and totally disabled on December 31 of the year immediately preceding the taxable year; and,

(2) Such real estate shall be owned by, and occupied as, the sole dwelling of all owners; however, an applicant who is residing in a nursing home, convalescent home or other facility for physical or mental care shall be deemed to meet this condition so long as the real estate is not being used by or leased to another for consideration; and,

(3) For purposes of this section, “eligible person” means a person who is at least age 65 or permanently and totally disabled. Real estate owned and occupied as the sole dwelling of an eligible person includes real estate (i) held by the eligible person alone or in conjunction with his spouse as tenant or tenants for life or joint lives, (ii) held in a revocable inter vivos trust over which the eligible person or the eligible person and his spouse hold the power of revocation, or (iii) held in an irrevocable trust under which an eligible person alone or in conjunction with his spouse possesses a life estate or an estate for joint lives or enjoys a continuing right of use or support. The term “eligible person” does not include any interest held under a leasehold or term of years.

(4) The total combined income received from all sources during the immediately preceding calendar year by (i) the owners of the dwelling living in the dwelling, and of the (ii) owners’ relatives living in the dwelling, and (iii) nonrelatives of the owners who live in the dwelling except for bona fide tenants or bona fide paid caregivers of the owners, shall not exceed $50,000.00; and the first $7,500.00 of income of each relative living in the dwelling, other than a spouse of the owners, and each nonrelative who lives in the dwelling, other than bona fide tenants or bona fide paid caregivers of the owners, shall not be included in such total; and,

(5) a. If the title to the property for which the exemption is claimed is held solely by the applicant, or together with the spouse of the applicant, with no other joint owners, then the net combined financial worth, including the present value of equitable interests, as of December 31 of the immediately preceding calendar year, of the applicant and of the spouse of the applicant , excluding the value of the dwelling and the land, not exceeding two (2) acres upon which the dwelling is situated, shall not exceed $120,000.00; or,

b. If the title to the property for which the exemption is claimed is held by the applicant and one or more other individuals, and the net combined financial worth of all such joint owners, including the present value of all equitable interests and computed without any exclusion for the dwelling or for any other asset as of December 31 of the immediately preceding calendar year, does not exceed $170,000.00, the exemption for the dwelling that otherwise would have been provided shall be prorated by multiplying the amount of the exemption by a fraction that has as a numerator the percentage of ownership interest in the dwelling held by all qualifying applicants, and as a denominator, 100 percent.

(Ord. of 8-10-1993, § 3; Ord. of 12-12-2000; Ord. of 7-26-2005; Ord. of 10-9-2007(2); Ord. of 10-13-2009(1); Ord. of 12-14-2010; Ord.#111213-PH1-B; Ord. 01-13-2015; Ord of 02-11-2020)

Sec. 58-134. – Claim procedure.

(a) Not later than March 1 of each year, the person claiming an exemption under this division must file a real estate tax exemption affidavit with the commissioner of the revenue.

(b) The affidavit shall set forth, in a manner prescribed by the commissioner of the revenue, the location, assessed value, and the tax on the property and the names of the related persons occupying the dwelling for which exemption is claimed, their gross combined income, and the combined net worth of the owners and the spouse of any owner.

If such person is under 65 years of age, such affidavit shall have attached thereto a certification by the Social Security Administration, the Department of Veterans Affairs or the Railroad Retirement Board, or if such person is not eligible for certification by any of these agencies, a sworn affidavit by two medical doctors who are either licensed to practice medicine in the Commonwealth or are military officers on active duty who practice medicine with the United States Armed Forces, to the effect that the person is permanently and totally disabled, as defined in Virginia Code § 58.1-3217; however, a certification pursuant to 42 U.S.C. § 423 (d) by the Social Security Administration so long as the person remains eligible for such social security benefits shall be deemed to satisfy such definition in Virginia Code § 58.1-3217. The affidavit of at least one of the doctors shall be based upon a physical examination of the person by such doctor. The affidavit of one of the doctors may be based upon medical information contained in the records of the Civil Service Commission which is relevant to the standards for determining permanent and total disability as defined in Virginia Code § 58.1-3217.

(c) If, after audit and investigation, the commissioner of the revenue determines that such person is qualified for the exemption, he shall issue to such person a certificate which shall show the amount of the exemption from the claimant’s real estate tax liability.

(Ord. of 8-10-1993, § 4; Ord. of 10-14-2003; Ord. of 10-13-2009(1); Ord. 01-13-2015)

Sec. 58-135. – Calculation of amount of exemption.

The persons qualifying for and claiming an exemption under this division shall be relieved of that portion of the real estate tax levied on the qualifying dwelling and land in the amount calculated in accordance with the following schedule:

Exemption percentage schedule if qualifying under section 58-133(5)a.

Range of

Income

Financial Worth Range
$0.00 -$24,000.00 $24,001.00 -$48,000.00 $48,001.00 -$72,000.00 $72,001.00 -$96,000.00 $96,001.00-

$120,000.00

$0.00- $18,750.00 90 80 70 60 50
$18,751.00- $25,625.00 80 70 60 50 40
$25,626.00 –

$32,500.00

70 60 50 40 30
$32,501.00 –

$39,375.00

60 50 40 30 20
$39,376.00 –

$50,000.00

50 40 30 20 10

Exemption percentage schedule if qualifying under section 58-133(5)b.

Range of

Income

Financial Worth Range
$0.00-

$34,000.00

$34,001.00 -$68,000.00 $68,001.00-

$102,000.00

$102,001.00-

$136,000.00

$136,001.00-

$170,000.00

$0.00- $18,750.00 90 80 70 60 50
$18,751.00- $25,625.00 80 70 60 50 40
$25,626.00 –

$32,500.00

70 60 50 40 30
$32,501.00 –

$39,375.00

60 50 40 30 20
$39,376.00 –

$50,000.00

50 40 30 20 10

(Ord. of 7-26-2005; Ord. of 10-9-2007(2); Ord. of 10-13-2009(1); Ord. of 6-28-2011(4); Tables amended 12-13-2011 by Ord.#111213-PH1-B., Ord of 02-11-2020)

Sec. 58-136. – Changes in status.

(a) Changes in respect to income, financial worth, or other factors occurring during the taxable year for which the affidavit is filed and having the effect of exceeding or violating the limitations and conditions provided in this division, shall nullify any exemption for the then current taxable year and the taxable year immediately following.

(b) If there is a change in ownership of the property, the taxpayer shall be entitled to a prorated exemption for the portion of the taxable year during which the taxpayer qualified for such exemption or deferral. If the new owner of the property is a first-time qualified applicant for the exemption, the new owner shall have thirty (30) days to apply for the exemption for the remainder of that current year. Such prorated exemption shall be determined by multiplying the amount of the exemption granted to the taxpayer by a fraction in which the number of complete months of the year such property was properly eligible for such exemption is the numerator and the number 12 is the denominator.

(Ord. of 11-09-16)

Secs. 58-137—58-165. – Reserved.

CHAPTER 58 – Taxation

DIVISION 1. – GENERALLY

Secs. 58-31—58-50. – Reserved.

 

DIVISION 2. – COLLECTION PROCEDURES, INTEREST AND PENALTIES

Sec. 58-51. – Receipt of local taxes, levies.

With the exception of real estate taxes on property within Orange County’s territorial boundaries, pursuant to the Code of Virginia, § 58.1-3913, the treasurer shall commence to receive local taxes and levies as soon as he receives copies of the commissioner’s books and continue to receive them up to and including December 5 of each year.

Real estate taxes on property within Orange County’s territorial boundaries shall be due and payable to Orange County in two equal installments, the first installment to be paid no later than June 5 of each year and the second installment to be paid no later than December 5 of each year. The county treasurer shall give a notice to all taxpayers at least 14 days prior to June 5 of each year, that real estate taxes are due and payable.

Any payment received shall be credited first against the most delinquent local account, the collection of which is not subject to a defense of any applicable statute of limitations. Delinquent local accounts which have been recorded in the office of the clerk of the county circuit court shall not be considered as accounts in the hands of the treasurer for collection, and the treasurer shall not be required to credit payments first against the delinquent accounts recorded in the clerk’s office.

(Ord. of 2-8-1983; Ord. of 5-13-2003)

Sec. 58-52. – Interest on delinquent taxes.

Pursuant to Code of Virginia, § 58.1-3916, interest at the rate of ten percent per annum from the first day following the date such tax is due shall be collected upon the principal and penalties of all such taxes and levies remaining unpaid, which penalty and interest shall be collected and accounted for by the treasurer along with the principal sum.

(Ord. of 8-14-1979)

Sec. 58-53. – Penalty for nonpayment of taxes.

(a) Pursuant to the authority of Code of Virginia, § 58.1-3916, there is imposed a penalty for failure to pay county real estate, tangible personal property, and machinery and tools and merchants’ capital taxes when due. Such penalty shall be in the amount of ten percent of the tax past due on such property; the penalty shall in no case exceed the amount of the tax assessable. Said penalty shall be assessed on the day after the tax, or an installment thereof, is due and when so assessed shall become a part of the tax

(b) The penalty shall not be imposed for any assessment made later than two weeks prior to the day on which taxes are due, if such assessment is made thereafter through the fault of a local official, and if such assessment is paid within two weeks after the notice is mailed.

(c) The penalty shall not be imposed if such failure to pay was not the fault of the taxpayer, or was the fault of the commissioner of the revenue or the treasurer, as the case may be. The failure to pay the tax due to a medically determinable physical or mental impairment on the date the tax is due shall be presumptive proof of lack of fault on the taxpayer’s part provided the tax is paid within 30 days of the due date; however, this provision shall not apply if there is a committee, legal guardian or other fiduciary handling the individual’s affairs. The treasurer shall make determinations of fault relating to failure to pay a tax.

(Ord. of 6-10-1997(2)) (Ord. 130709-PH1 amending §a).

Sec. 58-54. – Filing of returns.

(a) Returns for tangible personal property, business tangible personal property, machinery and tools, or merchant’s capital with a situs in the county as of January 1, shall be filed with the commissioner of the revenue no later than May 1 of the tax year in accordance with the following provisions:

(1) Tangible personal property, machinery and tools, and merchant’s capital with a situs in the County as of January 1 shall be filed with the commissioner of the revenue no later than May 1 of the tax year, with the exception of motor vehicles, trailers, semi- trailers, boats, or watercraft for which a return has previously been filed.

(2) Notwithstanding the provisions of this section, any person who has previously filed a property return on any motor vehicle, trailer, semi-trailers, boat or watercraft, for which there has been no change in situs or status as hereinafter set forth in this section, shall not be required to file another personal property tax return on such property. The assessment and taxation of property shall be based on the most recent tax return previously filed with the County.

(3) Furthermore, a taxpayer who failed to file a personal property tax return on such property in any previous tax year, but who pays a personal property tax for such tax year based on information supplied to the taxpayer by the commissioner of the revenue, shall be deemed for purpose of this paragraph to have filed a return on such property for subsequent tax years.

(b) Notwithstanding the foregoing, the commissioner of the revenue, at his/her option, may waive the requirement for the filing of tax returns for motor vehicles, trailers, semi-trailers, or boats and pursuant to Code of Virginia sections 58.1-3518.1 and 58.1-3519 and assess such property based upon information received from the Virginia Department of Motor Vehicles, the Virginia Department of Game and Inland Fisheries, or other public agency or private entity required by law to report the presence of such property within the county, and the tax shall be assessed and levied on such information.

(Ord. of 06-14-2016)

 

Sec. 58-55. – Fee to cover cost of collection of delinquent taxes.

A fee is imposed on delinquent taxpayers to cover the administrative costs and reasonable attorney’s or collection agency’s fees actually contracted for. The attorney’s or collection agency’s fees shall not exceed 20 percent of the delinquent tax bill associated with the collection of delinquent taxes. Such administrative costs shall be in addition to all penalties and interest, and be the amount permitted in Va. Code §58.1-3958.

      (Ord. of 9-27-2016)

Sec. 58-56. – Payment of taxes by credit card.

Pursuant to the authority of Code of Virginia, §2.2-614.1, the treasurer may accept payment of local taxes, fees, and charges by use of a credit card. The treasurer may levy a service charge not to exceed the actual fee charged to Orange County by the bank or financial institution processing the payment.

 

(Ordinance of 01/08/2013)

Sec. 58-57. – Local motor vehicle license plate tax.

There is hereby imposed a local motor vehicle license plate tax in the amount of $100.00 annually, upon the owners of motor vehicles that do not display current license plates pursuant to Va. Code §15.2-973 and subject to the following:

(a) The tax authorized shall be assessed, billed, and collected under the same schedule and using the same process as the assessment and billing of personal property taxes; except that, the license tax authorized by this section shall be a flat tax, not otherwise subject to proration. The entire $100.00 flat tax shall be charged for any year, or for any part of a year, in which the vehicle has been determined to have taxable situs in Orange County and in which the vehicle does not otherwise display required Virginia license plates in accordance with Title 46.2 of the Code of Virginia. No refund or proration of this tax shall occur in the year in which a vehicle comes into compliance and first registers the vehicle with the Virginia Department of Motor Vehicles and displays a current Virginia license plate.

(b) The local motor vehicle license plate tax authorized under this section shall not be applicable to vehicles exempted from the requirements of displaying such license plates under the provisions of Article 6, Chapter 6, Virginia Code § 46.2-662 et seq., as amended, including any vehicle owned by a member of the armed forces on active duty. The license plate tax exemption for a member of the armed forces shall apply whether the vehicle is owned individually by the member of the armed forces or owned jointly with a non-military spouse. This exemption shall not apply to vehicles leased by members of the armed forces, and this exemption shall in no way impair the imposition of personal property taxes as may be otherwise applicable under the Orange County Code.

(Ordinance of 02-24-2015)

Sec. 58-58. – Penalty

Pursuant to Section 46.2-662 of the Code of Virginia, there shall be imposed a penalty in the amount of $250.00 upon a resident owner for each motor vehicle that, following the end of the first thirty (30) days of residency in the Commonwealth, is required to be registered in Virginia but which has not been so registered.

Each penalty levied pursuant to this section shall be in addition to the $100.00 local motor vehicle license plate tax imposed under Section 58-40. The combined license plate tax plus penalty shall amount to $350.00.

The Commissioner of the Revenue, may waive the penalty authorized by this section if the failure to properly display Virginia license plates was not the fault of the taxpayer.

(Ordinance of 02-24-2015)

Secs. 58-57—58-69. – Reserved.

 

DIVISION 3. – SUPPLEMENTAL ASSESSMENT OF PROPERTY SUBSTANTIALLY COMPLETED

Sec. 58-70. – Supplemental assessments authorized.

All new buildings substantially completed or fit for use and occupancy prior to November 1 of the year of completion shall be assessed when so completed or fit for use and occupancy, and the commissioner of the revenue shall enter in the books the fair market value of such building. No partial assessment as provided herein shall become effective until information as to the date and amount of such assessment is recorded in the treasurer’s office and made available for public inspection. Supplemental assessment bills of less than $20.00 will be added to the next bill for the property.

(Res. of 1-13-2009)

Sec. 58-71. – Method of calculation.

The total tax on any such new building for that year shall be the sum of (i) the tax upon the assessment of the completed building, computed according to the ratio which the portion of the year such building is substantially completed or fit for use and occupancy bears to the entire year, and (ii) the tax upon the assessment of such new building as it existed on January 1 of that assessment year, computed according to the ratio which the portion of the year such building was not substantially complete or fit for use and occupancy bears to the entire year. With respect to any assessment made under this section after September 1 of any year, the penalty for nonpayment by December 5 shall be extended to February 5 of the succeeding year.

(Res. of 1-13-2009)

Sec. 58-72. – How notice given.

Whenever there is a supplemental assessment of real estate, the commissioner of revenue shall give notice of the supplemental assessment directly to each property owner, as shown by the land book. Such notice shall be sent by U.S. mail, first-class postage prepaid, at least 15 days prior to the date of a hearing to protest such change, to the address of the property owner as shown on such land books.

(Res. of 1-13-2009)

Sec. 58-73. – Contents of notice.

Every notice shall show the district, if any, in which the real estate is located, the amount and the new and immediately prior appraised value of land, the new and immediately prior appraised value of improvements, and the new and immediately prior assessed value of each if different from the appraised value. It shall further set out the time and place at which persons may appear before the officers making such reassessment or change and present objections thereto.

(Res. of 1-13-2009)

Sec. 58-74. – Duty to forward notice; civil penalties.

Any person other than the owner who receives such reassessment notice, shall transmit the notice to such owner, at his last known address, immediately on receipt thereof, and shall be liable to such owner in an action at law for liquidated damages in the amount of $25.00, in the event of a failure to so transmit the notice. Mailing such notice to the last known address of the property owner shall be deemed to satisfy the requirements of this section. Notwithstanding the provisions of this section, if the address of the taxpayer as shown on the tax record is in care of a lender, the lender shall upon request furnish the county a list of such property owners, together with their current addresses as they appear on the books of the lender, or the parties may by agreement permit the lender to forward such notices to the property owner, with the cost of postage to be paid by the county.

(Res. of 1-13-2009)

Secs. 58-75—58-85. – Reserved.

CHAPTER 58 – Taxation

Sec. 58-1. – Tax on probate of will or grant of administration.

A tax is hereby imposed on the probate of any will or grant of administration in an amount equal to one-third of the state tax on such probate of a will or grant of administration.

(Ord. of 4-25-2000(1))

Sec. 58-2. – Recordation tax.

There is imposed and levied by the county, pursuant to the provisions of the Code of Virginia, § 58.1-3800 et seq., a tax on the recordation in the county of each instrument subject to the state recordation tax imposed by such state law, except any instrument on which the state recordation tax is $0.50 specifically, in an amount equal to one-third of the amount of the state recordation tax collectable for the state on the first recordation of each taxable instrument in the county, pursuant to the provisions of such state law. Where a deed or other instrument conveys, covers or relates to property located within the county and also to property located in another county, the tax imposed and levied shall be computed only for that portion located within the county.

(Ord. of 8-10-2004)

Sec. 58-3. – Personal property tax relief.

(a) Purpose; definitions; relation to other sections.

(1) The purpose of this section is to provide for the implementation of the changes to PPTRA (Personal Property Tax Relief Act) effected by legislation adopted during the 2004 Special Session I and the 2005 Regular Session of the General Assembly of Virginia.

(2) Terms used in this section that have defined meanings set forth in PPTRA shall have the same meanings as set forth in Code of Virginia, § 58.1-3523.

(3) To the extent that the provisions of this section conflict with any prior ordinance or provision of the County Code, this section shall control.

(b) Method of computing and reflecting tax relief.

(1) For tax years commencing in 2006, the county adopts the provisions of item 503.E of the 2005 Appropriations Act, providing for the computation of tax relief as a specific dollar amount to be offset against the total taxes that would otherwise be due but for PPTRA and the reporting of such specific dollar relief on the tax bill.

(2) The board shall, by resolution set the percentage of tax relief at such a level that it is anticipated fully to exhaust PPTRA relief funds provided to the county by the Commonwealth.

(3) Personal property tax bills shall set forth on their face the specific dollar amount of relief credited with respect to each qualifying vehicle, together with an explanation of the general manner in which relief is allocated.

(c) Allocation of relief among taxpayers.

(1) Allocation of PPTRA relief shall be provided in accordance with the general provisions of this section, as implemented by the specific provisions of the county’s annual budget relating to PPTRA relief.

(2) Relief shall be allocated in such as manner as to eliminate personal property taxation of each qualifying vehicle with an assessed value of $1,000.00 or less.

(3) Relief with respect to qualifying vehicles with assessed values of more than $1,000.00 shall be provided at a percentage, annually fixed and applied to the first $20,000.00 in value of each such qualifying vehicle, that is estimated fully to use all available state PPTRA relief. The percentage shall be established annually as a part of the adopted budget for the county.

(d) Transitional provisions.

(1) Pursuant to authority conferred in Item 503.D of the 2005 Appropriations Act, the county treasurer is authorized to issue a supplemental personal property tax bill, in the amount of 100 percent of tax due without regard to any former entitlement to state PPTRA relief, plus applicable penalties and interest, to any taxpayer whose taxes with respect to a qualifying vehicle for tax year 2005 or any prior tax year remain unpaid on September 1, 2006, or such date as state funds for reimbursement of the state share of such bill have become unavailable, whichever earlier occurs.

(2) Penalty and interest with respect to bills issued pursuant to subsection (a) of this section shall be computed on the entire amount of tax owed. Interest shall be computed at the rate provided in chapter 58 of the Code of Ordinances, from the original due date of the tax.

(Ord. of 12-13-2005)

Secs. 58-4—58-30. – Reserved.