Virginia Enacts Law Clarifying Tax Exemptions for Nonprofit-Controlled Properties Used Charitably

The Virginia Governor signed a law amending the Code of Virginia, to clarify that counties, cities, and towns may exempt, from real or personal property taxes, any property owned by entities controlled by nonprofit organizations, even with for-profit ownership interests, when used for charitable purposes such as affordable housing. The law includes clarifying that rental income from real property used for charitable purposes will not be considered revenue or profit for taxation purposes. The law takes effect July 1. [H.B. 854, enacted 04/13/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.