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HJ 451

Land value; DHCD to study tax implications of allowing localities to implement a tax.

2025 Regular Session Introduced by Irene Shin

DHCD will study the revenue and economic effects of letting Virginia localities implement a land value tax (LVT), with a report due for the 2026 session.

Left in Rules
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Bill Summary · HJ 451

Summary of HJ 451 (2025)

Title

Land value; DHCD to study tax implications of allowing localities to implement a tax.

Purpose and Intent

  • HJ 451 is a House Joint Resolution requesting the Department of Housing and Community Development (DHCD) to study the potential tax implications of allowing Virginia localities to implement a land value tax (LVT).
  • The resolution also notes that certain Virginia cities already authorized a tax on improvements to real property as a separate class from land value, and it seeks to evaluate the broader adoption of LVT by all local governing bodies.

Key Provisions

  • Study Mandate: DHCD shall examine the potential tax implications of:

    1. Each of the governing bodies of the Cities of Fairfax, Poquoson, Richmond, and Roanoke levying a land value tax.
    2. Allowing all counties, cities, and towns in Virginia to implement a land value tax.

  • Scope of Analysis: The study must address:

    • (i) The current revenue that Virginia localities receive from real property taxes.
    • (ii) Potential revenue changes if counties, cities, and towns were permitted to implement a land value tax.
    • (iii) Whether a land value tax would yield economic benefits or stressors for Virginia residents.
    • (iv) Other states’ experiences with LVT and the resulting revenue impacts.
    • (v) Possible constitutional challenges associated with an LVT.

  • Technical Assistance: Local commissioners of revenue and other appropriate stakeholders shall provide technical assistance to DHCD. All state agencies shall assist DHCD upon request.

  • Reporting Timeline:

    • DHCD shall complete its meetings by November 30, 2025.
    • DHCD must submit an executive summary and a full report of findings and recommendations to the Governor and General Assembly.
    • The report must be published as a House or Senate document and posted on the General Assembly’s website no later than the first day of the 2026 Regular Session.

Affected Entities

  • Local governments in Virginia (counties, cities, and towns) as potential implementers of LVT.
  • Department of Housing and Community Development (DHCD) as lead study agency.
  • Local commissioners of revenue and other relevant state and local stakeholders providing input.
  • All Virginia state agencies, if requested, to assist DHCD.

Background and Context

  • Virginia currently authorizes a land value tax in the Cities of Fairfax, Poquoson, Richmond, and Roanoke for taxes on improvements to real property as a separate class from land. A land value tax is a levy on land value independent of structures and improvements, intended to encourage development and reduce speculative landholding.

Timeline and Procedural Status

  • Introduced: January 7, 2025 (prefiled); Offered January 13, 2025.
  • Referred to: Rules Committee.
  • Status: Left in Rules as of February 4, 2025.
  • Reporting deadline: DHCD to complete meetings by November 30, 2025; report due for the 2026 Regular Session.

Potential Impact

  • The resolution is non-binding but sets the policy inquiry into whether LVT could alter local revenue streams, influence development patterns, and raise or address constitutional considerations.
  • If pursued, findings could influence future legislation modifying local tax authority and property tax structure in Virginia.

Compiled from official sources — confirm details with the bill’s official record.

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