Bulletin Number
VTB 81-15
Tax Type
Property Tax
Description
Service Charge on Tax Exempt Real Estate
Topic
Exemptions
Date Issued
06-16-1981
The 1981 General Assembly amended § 58-16.2 concerning the service charge on tax exempt real estate.
State owned hospitals, state owned educational institutions (except faculty and staff housing), public roadways and property held for future construction of public highways are exempt from the service charge.
Faculty and staff housing of state educational institutions is subject to the service charge regardless of the amount of state-owned property in the locality. Other state-owned real estate is subject to the service charge only if the value of state-owned real estate (excluding the value of hospitals, educational institutions and public roadways or property held for the future construction of public highways) exceeds three percent of the value of all real estate in the locality.
The service charge on state-owned real estate shall be based on the assessed value of the state-owned real estate and the amount the locality expended applicable to such real estate for the furnishing of police and fire protection, for the collection and disposal of refuse and, in the case of faculty and staff housing of an educational institution, the cost of public school education. In calculating the service charge, amounts expended must be reduced by any sums received from federal and state grants designated for such purposes and the service charge may not exceed the real estate tax which would have been payable had the property been fully taxable.
Localities which adopt an ordinance levying the service charge on state-owned property after January 1, 1981 shall notify the Governor and each affected state agency at least twelve months prior to the effective date of the ordinance. Any locality which levies a service charge on faculty and staff housing of a private educational institution shall notify the chief executive officer of the institution at least twelve months prior to the effective date of the ordinance.
The service charge on tax exempt property other than state-owned property is unchanged except that state law enforcement assistance funds are excluded from expenditures.
The amendment also repeals the limitations on the payment of the service charge contained in the 1980 Appropriations Act.
The amendments are effective July 1, 1981. (Chapter 602, 1981 Acts of Assembly, House Bill 1231).
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