Rollback Taxes & Sliding Scale Option
Sliding Scale Option
On December 15, 1999, the Loudoun County Board of Supervisors adopted an amendment to the county's Land Use Assessment Ordinance, section 848.036, allowing taxpayers currently enrolled in the Land Use Assessment Program the opportunity for additional deferral of taxes. This deferral of additional taxes requires a recorded commitment to keep the property in a qualifying use for a term of years according to the following scale:
- A commitment to hold the property in its qualifying use for more than 10 years, but not exceeding 20 years, 99% of the use value taxes otherwise assessed may be deferred for the term of the commitment.
- A commitment to hold the property in its qualifying use for more than five years, but not exceeding 10 years, 50% of the use value taxes otherwise assessed may be deferred for the term of the commitment.
The additional deferral applies to qualifying land and does not include ineligible land or buildings assessed at fair market value. See important rollback information below.
Prospective applicants are encouraged to contact the real estate assessment division
of the Office of the Commissioner of Revenue
for further information and to obtain the appropriate documents. It is strongly recommended that applicants consult legal or tax professionals for assistance in completing the agreements.
Loudoun County requires the revalidation of each parcel enrolled in the land use assessment program every sixth year. This includes parcels enrolled in the Sliding Scale Option. While the county attempts to mail revalidation forms to every owner of record, it is the property owner’s responsibility to ensure that the property is appropriately revalidated in the program. All filing deadlines apply.
Changes in use, rezoning to a more intense use (Title Sec. 58.1-3237) and the split off or subdivision of lots (Title Sec. 58.1-3241) may trigger rollback taxes. When rollback is issued, the taxes owed are based on the difference between land use value and fair market value for the current year, as well as the previous five tax years. Rollback taxes will equal the deferred tax, plus simple interest; currently at 10% per year.
Rollback Sliding Scale Agreement
The circumstances listed above (change in use or rezoning, Title Sec. 58.1-3237; subdivision, Title Sec. 58.1-3241); may trigger rollback taxes for properties enrolled in the sliding scale option. For these properties, however, the rollback will include the current tax year plus the previous five tax years or each year from the date the sliding scale agreement was signed, whichever is greater. For example, if a property enrolled in the sliding scale option effective beginning tax year 2001 is rezoned in 2003, rollback will include the year 2003 plus the previous five tax years, 1998 through 2002. If a property enrolled in the sliding scale option effective beginning tax year 2001 is rezoned in the year 2008, rollback will include the year 2008 plus each year from 2001 through 2007, a total of eight years.