Composite index of local ability-to-pay; use value of real estate in certain localities. (HB1514)

Introduced By

Del. Randy Minchew (R-Leesburg) with support from co-patrons Del. Dickie Bell (R-Staunton), and Del. Scott Lingamfelter (R-Woodbridge)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Composite index of local ability-to-pay; use value of real estate in certain localities. Requires, for the purpose of determining the state and local shares of basic aid funding, that the composite index of local ability-to-pay or "local composite index" (LCI) utilize the use value of all applicable real estate (i) devoted to agricultural use, horticultural use, forest use, and open-space use in each locality that has adopted an ordinance by which it provides for the use valuation and taxation of such real estate and (ii) used in agricultural and forestral production within an agricultural district, forestal district, agricultural and forestal district, or agricultural and forestal district of local significance in each locality that provides for the use valuation and taxation of such real estate, regardless of whether it has adopted a localland-use plan or local ordinance for such valuation and taxation. Read the Bill »


Bill Has Failed


01/05/2015Prefiled and ordered printed; offered 01/14/15 15102516D
01/05/2015Referred to Committee on Education
01/16/2015Assigned Education sub: Elementary and Secondary Education
01/21/2015Subcommittee recommends reporting (4-Y 3-N)
01/23/2015Impact statement from DPB (HB1514)
01/26/2015Failed to report (defeated) in Education (10-Y 12-N) (see vote tally)


Loudoun HOA writes:

Del. Minchew's colleagues must have noticed his day job for Walsh Colucci, Lubeley et al, a/k/a "the land lawyers" in Arlington VA. This bill would shift taxation from their clients with land in protected "land use" status who don't pay taxes on fair market value but instead pay the lower "land use" rate. Del. Minchew represents Loudoun County, which Forbes magazine considers "the richest county in America."
Why should less wealthy counties in Virginia -- all of them -- pay based on a higher LCI so Walsh Colucci clients can wait until the market is ripe to subdivide and sell?
When they do, thanks to Minchew's 2013 bill, they no longer have to pay rollback taxes if they come out of land use before the 10 to 20 year term is up.

Jill Mathis writes:

What Loudoun HOA fails to appreciate about Delegate Minchew's very good HB 1514 is that it would ENCOURAGE CONSERVATION by taking out the penalty local governments have to deal with when they allow agricultural and open space lands to go into Agricultural and Forestal Districts of the local land use assessment program.

Mr. Loudoun HOA, when agricultural land goes into the land use assessment program, the locality can only tax it based on its "use value" rather than its much higher "fair market value". BUT, the Local Composite Index (LCI) requires that the "fair market value" number must be used. And, this current rule really hurts Loudoun, Clarke, Fauquier, Albemarle, Rappahannock, Frederick, and other counties who use the land use assessment program to protect open space and agriculture.

That's why the Piedmont Environmental Council and the Virginia League of Conservation Voters strongly supported Minchew's bill.