October 15, 2018

Kevin Schmidt, Director

Office of Policy, Planning and Research

Department of Agriculture and Consumer Service

P. O. Box 1163

Richmond, VA 23218

RE: 2VAC5-20 Standards for Classification of Real Estate as Devoted to Agricultural Use and to Horticultural Use Under the Virginia Land Use Assessment Law

Dear Mr. Schmidt:

Please accept these comments submitted on behalf the membership of the Virginia Farm Bureau Federation. As you may know, the Virginia Farm Bureau represents over 35,000 farm families across the Commonwealth.

The Virginia Land Use Assessment Law is vital to the continued operation of farms in Virginia. The tax equity created by the law allows for producers to utilize their assets on the successful operation of their farm and helps maintain the inventory of land needed for production agriculture and forest in our state.

In preparation of our comments I have focused on the intent of the changes sought and passed by the 2018 General Assembly and signed by the Governor, supported by our organization and industry in HB871 Orrock. These comments speak only to the substantive changes.

§ 58.1-3230. Special classifications of real estate established and defined

Definition of "Real estate devoted to agricultural use"- This change was made to clarify land in various conservation programs, not just federal soil conservation programs, are also eligible for land use taxation. It is also to clarify the conservation program agreement can be with a State or Federal Agency.

Definition of "Real estate devoted to horticultural use" - This change was made clarify land in various conservation programs, not just federal soil conservation programs are also eligible for land use taxation. It is also to clarify the conservation program agreement can be with a State or Federal Agency.

§ 58.1-3231. Authority of counties, cities and towns to adopt ordinances; general reassessment following adoption of ordinance.

First paragraph, insertion of “However, real estate that is being provided use value assessment and taxation shall not be denied such use value assessment and taxation solely because of its location in a newly created zoning district that was not requested by the real estate owner.” - This change in the code was made to clarify that when a locality changes the zoning of property, without the desire of the owner, it does not take the property out of land use taxation without the property owners consent.  This codifies a long-held interpretation from guidance documents from the Commissioner.

Third paragraph, insertion of “If the uniform standards prescribed by the Commissioner of Agriculture and Consumer Services pursuant to § 58.1-3230 require real estate to have been used for a particular purpose for a minimum length of time before qualifying as real estate devoted to agricultural use or horticultural use, then (i) use of other similar property by a lessee of the owner shall be included in calculating such time and (ii) the Commissioner of Agriculture and Consumer Services shall include in the uniform standards a shorter minimum length of time for real estate with no prior qualifying use, provided that the owner submits a written document of the owner's intent regarding use of the real estate containing elements set out in the uniform standards. Localities are not required to maintain such written document.” - The intent of this code change was to allow those parcels of land where the owner or farm operator does not have the required farm production history for the property, the owner may submit a written document showing the intent to conform to the requirements of the land use taxation program. For example, the landowner may submit, voluntarily, a copy of a land lease with the farm owner/operator showing intent to conduct production agriculture on the acreage, or the landowner could submit a signed affidavit stating a similar intent. After the application process is complete, the locality is under no obligation to maintain/keep a copy of the document.

§ 58.1-3234. Application by property owners for assessment, etc., under ordinance; continuation of assessment, etc.

Number 3. Second paragraph, striking “annual” and inserting “at least every six years” - This change was made to clarify a locality does not have to revalidate every year but may offer validation of the land qualifying in the program for multiple years. For example, the locality may choose to revalidate every three years, four years, etc.

Please do not hesitate to contact me with any questions. We appreciate the opportunity to make comments.

Respectfully,

Andrew W. Smith

Associate Director

Governmental Relations

Virginia Farm Bureau Federation