Local governments get state funding for partial reimbursement for land use taxation

Five of the six localities in the Thomas Jefferson Planning District Commission have been awarded funds from the Virginia Department of Forestry to help support the practice of land use taxation.

“Forest land use taxation allows for taxation to be based upon the productive value of the land, rather than the current market value, which results in lower taxes,” reads a press release sent out January 28.

The Virginia General Assembly created the fund in 2022 and this year $2.5 million is being distributed to 70 of the 76 localities that have enacted land use taxation.

• Albemarle County will receive $100,000
• Fluvanna County will receive $51,704.07
• Greene County will receive $24,996.16
• Louisa County will receive $86,592.29
• Nelson County will receive $95,321.32

The funding is used to make up revenue lost to the county and the money can be used for public education, forest conservation projects, or outdoor recreation. The average amount of foregone revenue for each locality is $1.1 million.

“The private landowners and communities of Virginia bear the cost of providing the many benefits of keeping our forests as forest, but that results in less tax revenue for localities,” said State Forester Rob Farrell in a press release. “The Forest Sustainability Fund offsets a portion of that forgone revenue. This benefits landowners, localities and all citizens of Virginia to preserve these forest benefits that we all enjoy.” ‘

To qualify for land use taxation for forest uses in Albemarle County, a property must be a minimum of 20 acres. The land owner must have either a written commitment that the property is used as a working forest or a forest management plan prepared by a professional forester. Learn more on the Albemarle County website.

You can also read CBS19’s version of the story.

Before you go: This article was originally sent out as part of the Charlottesville Community Engagement newsletter in the January 29, 2025 edition. Both are functions of Town Crier Productions. You can support the work by purchasing a paid subscription or contributing monthly through Patreon. You can also send in a check or send an email, but drop me a line first.