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Virginia bills · 2026 Regular Session

Virginia SB 181

Real property tax; partial exemption for repurposing underutilized structures for residential use.

  1. Introduced
  2. In committee
  3. Passed Senate
  4. Passed House
  5. To Governor
  6. Became law

Sponsors

Summary

Official abstract published by the Virginia legislature· SUMMARY AS PASSED

Real property tax; partial exemption for repurposing underutilized structures for residential use; local incentives. Permits localities to provide partial real estate taxation exemptions for converted real property where such conversion establishes a residential structure that has set aside at least 30 percent of the structure for households with a per capita income at or below 80 percent of the locality's median income or where the building owner is subject to an agreement with the Commonwealth or the locality regarding the provision of affordable housing. Localities have discretion to determine (i) whether a converted building qualifies for the partial exemption, (ii) any additional restrictions and conditions, (iii) whether the exemption is the amount equal to the increase in assessed value or a percentage of such increase resulting from the repurposing of the structure, and (iv) the length of time the exemption will run with the land, not to exceed 15 years. The bill provides that, at any time a building for which its owner claims a partial exemption no longer meets the requirements to receive such exemption, the locality may recapture all or a portion of the exemption granted in the immediately preceding year. Further, if a building owner that claims an exemption as described by the bill sells the building for which he is claiming the exemption and, after the sale, the property no longer meets the requirements described by the bill, the purchaser shall be subject to a penalty. The building owner shall provide written notification of the partial exemption to the purchaser. The bill also permits localities to grant tax incentives or provide regulatory flexibility to qualifying converted real property.

Text versions

Roll-call votes

State vote data last updated Oct 15, 2026, 4:19 PM.

DateVoteResultYour legislators
Mar 4, 2026
Senate		Concur House Substitute RpassSet your home in Virginia to see
Mar 2, 2026
House		H VOTE:passSet your home in Virginia to see
Feb 25, 2026
House		Reported from Finance with substitutepassSet your home in Virginia to see
Feb 24, 2026
House		Subcommittee recommends reporting with substitutepassSet your home in Virginia to see
Feb 2, 2026
Senate		Passage RpassSet your home in Virginia to see
Jan 29, 2026
Senate		Constitutional reading dispensed RpassSet your home in Virginia to see
Jan 28, 2026
Senate		Reported from Finance and AppropriationspassSet your home in Virginia to see

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