Land Use Taxation

Most counties in Virginia have adopted a land use tax.  This tax rate reduces the annual real estate tax on land that is used for agricultural or forestry purposes.  The reduction in annual tax can be quite significant.

There is a provision whereby the county can recapture some of the deferred real estate tax.  Typically, it is limited to the tax reduction the previous five years plus some sort of interest on those deferred taxes.

The trigger for recapture is if the use of the property is changed from agricultural or forestry into residential or some other development.  Often just the act of rezoning will trigger the recapture.  However, land use taxation can greatly benefit the bottom line of holding a piece of timber land.

We hope that the information we are sharing will assist you in making a timberland investment.  We believe doing so will make you look brilliant over the next 10 years.  Call us, at Grant Massie Land Company we love to help our clients look brilliant.