POLLUTION CONTROL EQUIPMENT, FACILITIES AND PROPERTY

Richmond, Va., City Code ch. 26, art. V, div. 7

in effect

Richmond, Va., City Code § 26-518 Exemption from taxation.

Sec. 26-518. - Exemption from taxation. (a) The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning: Certified pollution control equipment, facilities and property means any property, including real or personal property, equipment, facilities, or devices, used primarily for the purpose of abating or preventing pollution of the atmosphere or waters of the Commonwealth and which the State certifying authority or subdivision certifying authority having jurisdiction with respect to such property has certified to the State Department of Taxation as having been constructed, reconstructed, erected, or acquired in conformity with the State program or requirements for abatement or control of water or atmospheric pollution or contamination, except that in the case of equipment, facilities, devices, or other property intended for use by any political subdivision in conjunction with the operation of its water, wastewater, stormwater, or solid waste management facilities or systems, the state certifying authority or subdivision certifying authority having jurisdiction with respect to such property shall, upon the request of the political subdivision, make such certification prospectively for property to be constructed, reconstructed, erected, or acquired for such purposes. Such property shall include, but is not limited to, any equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and other vegetative cover for reuse as mulch, compost, landfill gas, synthetic or natural gas recovered from waste or other fuel, and equipment used in collecting, processing, and distributing, or generating electricity from, landfill gas or synthetic or natural gas recovered from waste, whether or not such property has been certified to the State Department of Taxation by a state certifying authority or subdivision certifying authority. Such property shall include solar energy equipment, facilities, or devices owned or operated by a business that collect, generate, transfer, or store thermal or electric energy whether or not such property has been certified to the Department of Taxation by a state certifying authority or subdivision certifying authority. Such property shall also include energy storage systems, whether or not such property has been certified to the State Department of Taxation by a state certifying authority or subdivision certifying authority. All such property as described in this definition shall not include the land on which such equipment or facilities are located. Energy storage system means equipment, facilities, or devices that are capable of absorbing energy, storing it for a period of time, and that energy after it has been stored. State certifying authority means the State Water Control Board or the Virginia Department of Health, for water pollution; the State Air Pollution Control Board, for air pollution; the Department of Energy, for solar energy projects, energy storage systems, and for coal, oil, and gas production, including gas, natural gas, and coalbed methane gas; and the Virginia Waste Management Board, for waste disposal facilities, natural gas recovered from waste facilities, and landfill gas production facilities, and shall include any interstate agency authorized to act in place of a certifying authority of the Commonwealth. (b) Certified pollution control equipment, facilities and property are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other such classifications of real or personal property, and such property shall be exempt from local taxation. (c) For solar photovoltaic (electric energy) systems, this exemption applies only to: (1) Projects equaling 20 megawatts or less, as measured in alternating current (AC) generation capacity, for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or before December 31, 2018; (2) Projects equaling 20 megawatts or less, as measured in alternating current (AC) generation capacity, that serve any of the public institutions of higher education listed in Code of Virginia, § 23.1-100 or any private college as defined in Code of Virginia, § 23.1-105; (3) 80 percent of the assessed value of projects for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization: a. Between January 1, 2015, and June 30, 2018, for projects greater than 20 megawatts; or b. On or after July 1, 2018, for projects greater than 20 megawatts and less than 150 megawatts, as measured in alternating current (AC) generation capacity, and that are first in service on or after January 1, 2017; (4) Projects equaling five megawatts or less, as measured in alternating current (AC) generation capacity, for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019; and (5) 80 percent of the assessed value of all other projects equaling more than five megawatts and less than 150 megawatts, as measured in alternating current (AC) generation capacity for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019. (d) The exemption for solar photovoltaic (electric energy) projects greater than five megawatts, as measured in alternating current (AC) generation capacity, shall not apply to any such project unless an application has been filed with the City for the project before July 1, 2030, regardless of whether the City assesses a revenue share on such project pursuant to the provisions of Code of Virginia, § 58.1-2636. If the City adopts an energy revenue share ordinance under Code of Virginia, § 58.1-2636, the exemption for solar photovoltaic (electric energy) projects greater than five megawatts, as measured in alternating current (AC) generation capacity, shall be 100 percent of the assessed value. If the City does not adopt an energy revenue share ordinance under Code of Virginia § 58.1-2636, the exemption for solar photovoltaic (electric energy) projects greater than five megawatts, as measured in alternating current (AC) generation capacity, for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization, shall be 80 percent of the assessed value when an application has been filed with the City prior to July 1, 2030. For purposes of this subsection, the term "application has been filed with the City" means an applicant has filed an application for a zoning confirmation from the City for a by-right use or an application for land use approval under Chapter 30 to include an application for a conditional use permit, special use permit, special exception, or other application as set out in Chapter 30. (e) For pollution control equipment and facilities certified by the Virginia Department of Health, this exemption applies only to onsite sewage systems that serve ten or more households, use nitrogen-reducing processes and technology, and are constructed, wholly or partially, with public funds. (f) Notwithstanding any provision to the contrary, for any solar photovoltaic project described in Subsections (c)(3) and (4) of this section for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019, the amount of the exemption shall be as follows: 80 percent of the assessed value in the first five years in service after commencement of commercial operation, 70 percent of the assessed value in the second five years in service, and 60 percent of the assessed value for all remaining years in service. (g) Notwithstanding any provision to the contrary, the exemption for energy storage systems provided under this section shall apply only to projects greater than five megawatts and less than 150 megawatts, as measured in alternating current (AC) storage capacity, and shall be in the following amounts: 80 percent of the assessed value in the first five years of service after commencement of commercial operation, 70 percent of the assessed value in the second five years in service, and 60 percent of the assessed value for all remaining years in service. (h) The exemption for energy storage systems greater than five megawatts, as measured in alternating current (AC) storage capacity, shall not apply to any such project unless an application has been filed with the City for the project before July 1, 2030, regardless of whether the City assesses a revenue share on such project pursuant to the provisions of Code of Virginia, § 58.1-2636. If the City adopts an energy revenue share ordinance under Code of Virginia, § 58.1-2636, the exemption for energy storage systems greater than five megawatts, as measured in alternating current (AC) storage capacity, shall be 100 percent of the assessed value. If the City does not adopt an energy revenue share ordinance under Code of Virginia, § 58.1-2636, the exemption for energy storage systems greater than five megawatts, as measured in alternating current (AC) storage capacity, shall be as set out in Subsection (g) of this section when an application has been filed with the locality prior to July 1, 2030. For the purposes of this subsection, the term "application has been filed with the City" means an applicant has filed an application for a zoning confirmation from the City for a by-right use or an application for land use approval under Chapter 30 to include an application for a conditional use permit, special use permit, special exception, or other application as set out in Chapter 30. (Code 1993, § 27-121; Code 2004, § 98-221; Code 2015, § 26-518; Code 2020, § 26-518; Ord. No. 2014-112-85, § 1, 5-27-2014; Ord. No. 2016-145, § 1, 5-23-2016; Ord. No. 2017-096, § 1, 5-22-2017; Ord. No. 2019-155, § 1, 6-24-2019)

Richmond, Va., City Code § 26-519 Purpose.

Sec. 26-519. - Purpose. The purpose of a property tax exemption policy by the City is to: (1) Provide an orderly, systematic and organized process for the review of requests for exemption from real and personal property taxation; (2) Enable the City Council to be fully informed as to the financial impact of granting property tax exemptions, both individually and collectively; (3) Ensure that those organizations to whom such exemptions are granted are meeting a general public need for which the benefits derived by the community at large exceed the City's loss in revenue from taxes on the organization's real and tangible personal property; and (4) Ensure that all requests for exemption are provided equitable consideration. (Code 1993, § 27-125; Code 2004, § 98-246; Code 2015, § 26-545; Code 2020, § 26-545)

Richmond, Va., City Code § 26-520 Filing for exemption.

Sec. 26-520. - Filing for exemption. (a) A nonprofit organization that owns real or tangible personal property, either or both, and uses such property exclusively for religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes may apply for exemption from property taxation. Any such organization shall apply to the City either for exemption by classification or for exemption by designation. Application forms for both types of exemption shall be made available in the City Assessor's Office. Property tax exemption by classification applications along with all required documentation shall be filed with the City Assessor's Office no later than July 1. Organizations must provide all information requested by the City Assessor's Office. If an organization is determined to be exempt by classification, tax exempt status shall become effective on January 1 of the following year; unless such property is exempt pursuant to Code of Virginia, § 58.1-3606(A)(1) or (A)(2), in which case the exemption is effective immediately. Each organization granted an exemption by classification shall file a triennial application with the City Assessor's Office no later than September 1 of every third year in order to retain its tax-exempt status. (b) If an organization is determined not to be exempt by classification, then the City Assessor's Office shall notify that organization in writing of that determination and provide information regarding the exemption by designation process, including an application. Property tax exemption by designation applications, along with all required documentation, shall be filed with the City Assessor's Office no later than September 1. (Code 1993, § 27-126; Code 2004, § 98-247; Code 2015, § 26-546; Code 2020, § 26-546; Ord. No. 2004-369-332, § 1, 12-13-2004)

Richmond, Va., City Code § 26-521 Exemption by designation.

Sec. 26-521. - Exemption by designation. If an organization is not exempt from property taxes by classification, it may apply for exemption by designation, as indicated above, pursuant to Code of Virginia, § 58.1-3651. The process for review and consideration of these applications shall be as follows: (1) After receipt thereof, the City Assessor's Office shall promptly forward such application to the City Attorney's Office for review to determine whether the application is complete. After the City Attorney's Office has completed its review for completeness, it shall forward the application to the Property Tax Exemption by Designation Committee no later than December 1 of that year. The Property Tax Exemption by Designation Committee shall consist of at least five members who shall each serve a three-year term and who shall be familiar with one or more of the following areas: a. Nonprofit organizations; b. Accounting; c. Finance; and d. Property assessments. At least one member of the Property Tax Exemption by Designation Committee shall be an employee of either the City Assessor's Office or the Department of Finance; however, such employees shall comprise of no more than two-fifths of the members of the Property Tax Exemption by Designation Committee. The City Assessor and the Director of Finance shall jointly appoint each member of the Property Tax Exemption by Designation Committee and shall jointly furnish the Property Tax Exemption by Designation Committee with administrative support. The Property Tax Exemption by Designation Committee shall adopt such rules as it may find necessary to carry out its role in the process for review and consideration of applications for exemption by designation from property taxation. The Property Tax Exemption by Designation Committee shall review each application for exemption by designation and provide a written report to the City Council on each application no later than February 1 of the following year. (2) After the Property Tax Exemption by Designation Committee makes its recommendation to the City Council as to whether the Council should approve or deny the application, an ordinance approving the exemption shall be introduced and scheduled for a public hearing before and a vote by the City Council by no later than March 15. As required by Code of Virginia, § 58.1-3651(B), notice of the public hearing on the ordinance shall include the assessed value of the real and tangible personal property and the assessed property taxes against this property and shall be published in a paper of general circulation in the City at least seven days before the public hearing. The organization being considered shall pay the City for the costs of the publication. (3) All ordinances approving property tax exemption by designation applications shall clearly state for what purpose the property in question is being used. If the City Council adopts the ordinance to approve the exemption by designation for the organization, the City Clerk shall forward a copy of the ordinance to the City Assessor's Office, which shall appropriately mark the real property on the tax rolls and shall, if the ordinance pertains to tangible personal property tax exemptions, forward a copy of the ordinance to the Department of Finance so that it can appropriately mark the tangible personal property on the tax rolls. The City Assessor's Office shall send a written notice to each organization informing them whether the City Council adopted an ordinance approving the tax exemption for which it applied. (4) Any organization granted exemption by designation will be required to submit a triennial application to the City Assessor's Office by September 1 of every third year to determine if retention of the exempt status of real and personal property would be appropriate. The Property Tax Exemption by Designation Committee shall review all such triennial applications and shall make written recommendations to the City Assessor regarding the retention of the exempt status no later than February 1 of the following year. (Code 1993, § 27-128; Code 2004, § 98-248; Code 2015, § 26-547; Code 2020, § 26-547; Ord. No. 2004-369-332, § 1, 12-13-2004)

Richmond, Va., City Code § 26-522 Criteria for consideration of exemption.

Sec. 26-522. - Criteria for consideration of exemption. No exemption shall be provided to any organization that has any rule, regulation, policy, or practice that unlawfully discriminates on the basis of religious conviction, race, color, sex, or national origin. In determining whether to grant any request for property tax exemption, the following criteria shall be considered: (1) The organization's written responses to the questions set forth in Code of Virginia, § 58.1-3651(B). (2) The organization's written responses to the following questions: a. Whether the organization is current on all obligations to the City; b. Whether the organization is in compliance with all City regulations, including, but not limited to, building and zoning codes; c. Whether the organization is qualified to receive a contribution from the City under State statutes; and d. Whether the service provided by the organization is consistent with the City's mission; whether it is one that the City would provide if the requesting organization did not do so; and whether it meets an established priority of the City. (3) Any pertinent financial records or documentation requested by the City Assessor's Office, including, but not limited to, the letter from the Internal Revenue Service granting 501(c) status to the organization and, for the current year and two years prior, the following: a. The IRS Form 990 or 990EZ; b. Any financial audits of the organization; and c. Any annual financial statements listing assets/liabilities and net assets of the organization. (4) A description of all property, both real and personal, relevant to the application with a certification as to its exclusive use by the organization for the purpose for which the organization seeks exemption. (Code 1993, § 27-128; Code 2004, § 98-249; Code 2015, § 26-548; Code 2020, § 26-548; Ord. No. 2004-369-332, § 1, 12-13-2004)

Richmond, Va., City Code § 26-523 Moratorium on acceptance of applications for tax exemptions.

Sec. 26-523. - Moratorium on acceptance of applications for tax exemptions. On the date upon which the ordinance from which this section is derived takes effect, the City Assessor shall not accept any application filed by nonprofit organizations seeking exemption from taxation for real or tangible personal property pursuant to the provisions of Sections 26-520 through 26-522. This moratorium shall be in effect until repealed by the Council. Notwithstanding any other provision of law to the contrary, during the moratorium provided for in this section, any organization granted an exemption by designation shall submit a triennial application to the City Assessor's Office by September 1 of every third year to determine if retention of the exempt status of real and personal property would be appropriate and the City Assessor shall review all such triennial applications received and determine if retention of the exempt status is appropriate, provided that the City Assessor and the Director of Finance may jointly appoint the Property Tax Exemption by Designation Committee pursuant to Section 26-522 to review such triennial applications and make recommendations to the City Assessor regarding retention of the exempt status if both the City Assessor and the Director of Finance deem such appointment necessary. (Code 2004, § 98-249.1; Code 2015, § 26-549; Code 2020, § 26-549; Ord. No. 2012-188-2013-3, § 1, 1-28-2013; Ord. No. 2013-19-17, § 1, 2-11-2013; Ord. No. 2017-035, § 1, 3-27-2017)

Richmond, Va., City Code § 26-524 Property exempt from taxation by classification.

Sec. 26-524. - Property exempt from taxation by classification. (a) Pursuant to the authority granted in Article X, Section 6(a)(6) of the Constitution of Virginia to exempt property from taxation by classification, the following classes of real and personal property shall be exempt from taxation: (1) Property owned directly or indirectly by the Commonwealth, or any political subdivision thereof. (2) Real property and personal property owned by churches or religious bodies and exclusively occupied or used for religious worship or for the residence of the minister of any church or religious body, and such additional adjacent land reasonably necessary for the convenient use of any such property. Real property exclusively used for religious worship shall also include property: a. Used for outdoor worship activities; b. Used for ancillary and accessory purposes as allowed under Chapter 30, the dominant purpose of which is to support or augment the principal religious worship use; and c. Used as required by Federal, State or local law. (3) Nonprofit private or public burying grounds or cemeteries. (4) Property owned by public libraries, law libraries of local bar associations when the same are used or available for use by a State court or the judge thereof, medical libraries of local medical associations when the same are used or available for use by State health officials, incorporated colleges or other institutions of learning not conducted for profit. This subsection shall apply only to property primarily used for literary, scientific or educational purposes or purposes incidental thereto and shall not apply to industrial schools which sell their products to other than their own employees or students. (5) Property belonging to and actually and exclusively occupied and used by the Young Men's Christian Associations and similar religious associations, including religious mission boards and associations, orphan or other asylums, reformatories, hospitals and nunneries, conducted not for profit but exclusively as charities (which shall include hospitals operated by nonstock corporations not organized or conducted for profit but which may charge persons able to pay in whole or in part for their care and treatment). (6) Parks or playgrounds held by trustees for the perpetual use of the general public. (7) Buildings with the land they actually occupy, and the furniture and furnishings therein belonging to any benevolent or charitable organization and used by it exclusively for lodge purposes or meeting rooms, together with such additional adjacent land as may be necessary for the convenient use of the buildings for such purposes. (8) Property of any nonprofit corporation organized to establish and maintain a museum. (b) The real and personal property of an organization classified in Code of Virginia, §§ 58.1-3610 through 58.1-3622 and used by such organization for a religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purpose as set forth in Article X, Section 6(a)(6) of the Constitution of Virginia, the particular purpose for which such organization is classified being specifically set forth within each section, shall be exempt from taxation, so long as such organization is operated not for profit and the property so exempt is used in accordance with the purpose for which the organization is classified. (c) Property, belonging in one of the classes listed in Subsection (a) or (b) of this section, which was exempt from taxation on December 31, 2002, shall continue to be exempt from taxation under the rules of statutory construction applicable to exempt property at the time such property became entitled to exemption. (d) Exemptions of property from taxation granted under this section on or after January 1, 2003, shall be strictly construed in accordance with Article X, Section 6(f) of the Constitution of Virginia. (Code 2004, § 98-250; Code 2015, § 26-550; Code 2020, § 26-550; Ord. No. 2004-337-307, § 1, 11-22-2004; Ord. No. 2014-113-86, § 1, 5-27-2014)

Source: City of Richmond, Virginia, Code (2026 recodification) and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/va/richmond/codes/code_of_ordinances?nodeId=PTIICICO_CH26TA_ARTVLECOPRTA_DIV7POCOEQFAPRFetched: 11/8/2026