HB 854: Real property tax; local classification or designation for property, nonprofit organizations.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Real property tax; local classification or designation for portion of property. Clarifies that, in accordance with the Constitution of Virginia and by adoption of a local ordinance, any locality may by designation or classification exempt from real or personal property taxes, or both, the real or personal property, or both, owned by an ownership entity of which a controlling interest of the managing member or general partner of such ownership entity is held, directly or indirectly, by one or more nonprofit organizations, notwithstanding any for-profit ownership interests, that is used for charitable or benevolent purposes. The bill requires such local ordinance to stipulate any suspension or termination of such exemption in such ordinance.The bill also provides that any rental income or other sources of income received from any portion of real property that is used for charitable or benevolent purposes in accordance with such constitutional designation or classification shall not be considered a source of revenue or profit for which tax shall be assessed. Finally, the bill provides that the purpose of the bill is to stimulate public purpose projects by clarifying that localities have such authority and provides that the provisions of the bill providing that any county, city, or town may exempt from real or personal property taxes, or both, any real or personal property owned by an ownership entity of which a controlling interest of the managing member or general partner of such ownership entity is held directly or indirectly by one or more nonprofit organizations, notwithstanding any for-profit ownership interests, that is used for charitable or benevolent purposes are declaratory of existing law.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. April 13, 2026Acts of Assembly Chapter text (CHAP0683)
2. April 13, 2026Approved by Governor-Chapter 683 (effective 7/1/2026)
3. March 24, 2026Fiscal Impact statement From TAX (3/24/2026 9:50 am)
4. March 14, 2026Governor's Action Deadline 11:59 p.m., April 13, 2026
5. March 14, 2026Enrolled Bill communicated to Governor on March 14, 2026
6. March 13, 2026Signed by President
7. March 13, 2026Signed by Speaker
8. March 13, 2026Bill text as passed House and Senate (HB854ER)
9. March 13, 2026Enrolled
10. March 6, 2026Senate substitute agreed to by House (90-Y 5-N 0-A)
11. March 4, 2026Passed Senate with substitute Block Vote (40-Y 0-N 0-A)
12. March 4, 2026Engrossed by Senate - committee substitute

Showing 12 most recent of 36 actions. Full history