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2007-04 ORDINANCE NO. 2007-04 AN ORDINANCE AlVIENDING CFIAPTER 90 OF TFIE CODE OF THE CITY OF FAIRFAX, VIRGINIA, BY DELETING SECTION 90-31(D) AND BY ADDING A NE~ ARTICLE XII PERTAINING TO EXElVIPTION FROlVl TAXATION BY CLASSIFICATION AND DESIGNATION BE IT ORDAINED, by the City Council of the City of Fairfax, Virginia, that Section 90-31 (d) of Chapter 90. Article II, Division I. of the Code of the City or Fairrax, Virginia" is hereby deleted in its entirety. BE IT FURTFIER ORDAINED. by the City Council of the City of Fairfax, Virginia. that Chapter 90 of the Code OT the City of Fairfax" Virginia" is hereby amended to add a nc'\.iV Article XII pertaining to exemption from taxatiCH"1 by classi fication and designation" vvhich reads in its entirety as follovvs: CHAPTER 90, TAXATION ARTICLE XII, EXElVIPTION FROlVl TAXATION BY CLASSIFICATION AND DESIGNATION. Sect:ion 90-441. Exemp'tions by classificat:ion. The city council hereby adopts and incorporates by reference the exemptions by classification set out in Sections 58.1-3606 and 58.1-3609 - 58.1-3622 or the Code oT Virginia, 1950" as amended. The assessor is authorized to administratively approve exemptioTls by classification for qualified real estate", and the commissioner of revenue is authorized to administratively approve exemptions by classification ror qualified personal property. All requests ror exemption by classification shall be initiated by application of the property ovvner. The application shall be on forms provided by the assessor or commissioner, and shall contain all information and documents necessary to evaluate '-Vhether the real and/or personal property qualifies for the exemption. The assessor or commissioner of revenue may '-Vaive the requiren""1cnt oT a Tormal application for property o'-Vned directly by the United States, the Commonvv-calth or Virginia, or any political s.ubdivisioT1 thereof. The applications V\Till be evaluated in strict conformance vv-ith applicable statutory criteria and a final V\Tritten determination shall be provided to the applicant_ Sect;ion 90-442. Exempt:ions by designat:ion. (a) If an organization is not exen""1pt from taxation by classification, it n'lay apply for exemption by designation, pursuant to SectioTl 58.1-3651 of the Code oT Virginia, 1950, as amended. All requests ror exemption by designation shall be initiated by application orthe property ovvner. The application shall be on forms provided by the assessor or commissioner, and shall contain all information and documents necessary to evaluate V\Thether the property qualifies for the exemption. (b) Upon receipt, the completed applicatioTl V\iill be revieV\Ted by a property tax exemption committee, to consist of the assistant city manager, the assessor, the commissioner of revenue, and a representative of the Department of Community Development and Planning, to ensure that requirements of the Code of Virginia and other applicable criteria stated herein have been met. The committee shall make a recommendation to the city council as to vv-hether the application sh.ould be approved or denied, and a notice orpublic hearing shall be published at least once in a ne-vvspaper of general circulation in the city. The notice shall include the assessed val1..1-e oT the real and/or personal property for "",hich the exemption is requested as "",ell as the taxes assessed against such property. The public hearing shall not be held until at least five (5) days after the notice is published. The applicant shall pay the cost of the publication. (c) The city council shall make a determination on such application folloVv'ing the public hearing, and if approved, shall adopt an ordinance granting the exernption. The ordinance shall state the specific use on "",hich the exemption is based, and continuation of the exemption shall be contingent on the continued use of the property in accordance with the purpose for which the organization is designated. 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 ongm. Section 90-443. Criteria for consideration of exemption. In determining whether to grant any request for tax exemption, the following criteria shall be considered: (a) Whether the organization is exempt from taxation pursuant to 501(c) of the Internal Revenue Code of 1954; (b) Whether a current annual alcoholic beverage license for serving alcoholic beverages has been issued by the Virginia Alcoholic Beverage Control Board to such organization for use on such property; (c) Whether any director, officer, or employee of the organization is paid compensation in excess of a reasonable allowance for salaries or other compensation for personal services which such director, officer, or employee actually renders; (d) Whether any part of the net earnings of such organization inures to the benefit of any individual, and whether any significant portion of the service provided by such organization is generated by funds received from donations, contributions, or local, state or federal grants. As used in this subsection, donations shall include the providing of personal services or the contribution of in-kind or other material services; (e) public; Whether the organization provides services for the common good of the (f) Whether a substantial part of the activities of the organization involves carrying on propaganda, or otherwise attempting to influence legislation and whether the organization participates in, or intervenes in, any political campaign on behalf of any candidate for public office; (g) The revenue impact to the city and its taxpayers of exempting the property; and (h) Any other criteria, facts, and circumstances that the city council deems pertinent to the adoption of such an ordinance, including, but not limited to: (1) Whether the organization is current on all its obligations to the city; (2) Whether the organization is in compliance with all city ordinances and regulations, including, but not limited to, building, subdivision and zoning ordinances; (3) Whether the property for which the exemption is sought is located within a redevelopment or business improvement district; (4) Whether the property for which the exemption is sought relates to the purposes for which the organization was created and tends to directly promote these purposes; (5) Whether the services provided by the organization are services the provide if the requesting organization did not do so; city would (6) Whether the organization meets a general public need for which the benefits derived by the community at large are equivalent to or exceed the city's loss in revenue from taxes on the entity's real and/or personal property; (7) Whether the services provided by the organization meet an established priority of the city council. Section 90-444~ Strict construction. All requests for tax exemption shall be strictly construed, with any doubt resolved against the grant of the exemption. Section 90-445. Effective date. Unless otherwise directed by city council, the grant of tax exemption under this section shall be effective from the date that the owner began using the property for the purposes specified in the statutes referenced in Section 90-441 above, as applicable. Section 90-446. Revocation. (a) In the event a property no longer qualifies for a tax exemption granted by classification or designation, the assessor or commissioner of revenue may revoke the exemption, without further action by city council being necessary. Revocation shall be required where: (1) The property is no longer used for the purpose by which it qualified for exemption by classification or designation; (2) The property is conveyed to another person or entity; or (3) The nature or function of the nonprofit organization changes such that it no longer falls within the exempt classifications or designations. (b) Upon receiving information that a property no longer qualifies for an exemption, the assessor or commissioner of revenue shall notify the owner that the exemption may be revoked and shall provide the reasons for said revocation. The notice shall provide the owner a reasonable time to respond in writing. Upon failure of the owner to file a timely response or to provide convincing evidence that the property continues to qualify for the exemption, the exemption will be revoked and the owner provided with a final written determination. Nothing herein shall preclude city council from exercising independent revocation authority or from requesting revocation by the General Assembly if required by the Code of Virginia. Additionally, nothing herein shall prevent an applicant from requesting reinstatement ofthe grant of exemption should circumstances warrant. Section 90-447. Validation of prior grants of exemption. The city council hereby affirms and validates all exemptions by classification, if any, granted by the city administratively from January 1,2003 to the effective date of this ordinance. In addition, city council hereby recognizes the validity of all exemptions granted prior to January 1, 2003, by the General Assembly or by the city under prior state law. Such affirmations and validations shall not preclude revocation in accordance with Section 90-446 above. Section 90-448. Triennial application for exempt property. Any entity, except the commonwealth, any political subdivision of the commonwealth, or the United States, which owns property exempt under Code of Virginia 58.1-3606 et. seq., after having received 60 days written notice from the assessor or commissioner of revenue, must triennially file an application with the assessor or commissioner of revenue as a requirement for retention of the exempt status of the property. Such application shall show the ownership and usage of such property and shall be filed within the next 60 days preceding the tax year for which such exemption or the retention thereof is sought. This ordinance shall become effective as provided by law. INTRODUCED: February 20, 2007 PUBLIC HEARING: February 27,2007 ENACTED: February 27,2007 8M~ Mayor 5i~Z ATTEST: ~ City Clerk Vote Councilwoman Cross Aye Councilman Greenfield Aye Councilwoman Lyon Aye Councilman Rasmussen Aye Councilman Silverthorne Aye Councilmember Winter Aye --.......,