Roll-back Taxes & Sliding Scale Option

Roll-back Taxes

Changing to a non-qualifying use, rezoning to a more intense use (Sec. 58.1-3237 of the Code of Virginia) and the split off or subdivision of lots (Title Sec. 58.1-3241) may trigger roll-back taxes. When roll-backs are 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. Roll-Back taxes will equal the deferred tax plus simple interest of five-sixths of one percent per month.

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 848.062, allowing property owners currently enrolled in the Land Use Assessment Program the opportunity for an 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 roll-back information below.

Prospective applicants are encouraged to call (703-737-8557) or email the Exemptions and Deferrals Division 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.

Roll-back Sliding Scale Agreement

The circumstances listed above (changing to a non-qualifying use, rezoning to a more intensive purpose, or subdivision) may trigger roll-back taxes for properties enrolled in the sliding scale option. For these properties, however, the roll-back 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 2015 changes to a non-qualifying use in 2019, roll-back will include the year 2019 plus the previous five years, 2014 through 2018. If a property enrolled in the 10 year sliding scale option effective beginning tax year 2015 changes to a non-qualifying use in 2023, roll-back will include the year 2023 plus each year from 2015 through 2022, a total of eight years.