HB854Introduced in the House of Delegates
Real property tax; local classification or designation for property, nonprofit organizations.
Introduced by Rae Cousins, District 79
What does this bill do?
Plain-English breakdown
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Official description
Real property tax; local classification or designation for portion of property. Clarifies that, in accordance with the Constitution of Virginia and by adoption of a local ordinance, any locality may by designation or classification exempt from real or personal property taxes, or both, the real or personal property, or both, owned by an ownership entity of which a controlling interest of the managing member or general partner of such ownership entity is held, directly or indirectly, by one or more nonprofit organizations, notwithstanding any for-profit ownership interests, that is used for charitable or benevolent purposes. The bill requires such local ordinance to stipulate any suspension or termination of such exemption in such ordinance.The bill also provides that any rental income or other sources of income received from any portion of real property that is used for charitable or benevolent purposes in accordance with such constitutional designation or classification shall not be considered a source of revenue or profit for which tax shall be assessed. Finally, the bill provides that the purpose of the bill is to stimulate public purpose projects by clarifying that localities have such authority and provides that the provisions of the bill providing that any county, city, or town may exempt from real or personal property taxes, or both, any real or personal property owned by an ownership entity of which a controlling interest of the managing member or general partner of such ownership entity is held directly or indirectly by one or more nonprofit organizations, notwithstanding any for-profit ownership interests, that is used for charitable or benevolent purposes are declaratory of existing law.
Where it stands
Acts of Assembly Chapter text (CHAP0683)
April 13, 2026
How did lawmakers vote?
House of Delegates votes
5 recorded votes · each counted separately
Senate votes
3 recorded votes · each counted separately
House of DelegatesStage: Senate substitute agreed to by House (90-Y 5-N 0-A) · March 6, 2026
90
Yes
5
No
4
Absent or Not Voting
99 delegates recorded in this House of Delegates vote. Colors show vote categories only, not whether a vote was good or bad.
See how each delegate voted
| Delegate | District | Vote |
|---|---|---|
| Patrick Hope | 1 | Yes |
| Adele McClure | 2 | Yes |
| Alfonso Lopez | 3 | Yes |
| Charniele Herring | 4 | Yes |
| Kirk McPike | 5 | Yes |
| Richard Sullivan | 6 | Yes |
| Karen Keys-Gamarra | 7 | Yes |
| Irene Shin | 8 | Yes |
| Karrie Delaney | 9 | Yes |
| Dan Helmer | 10 | Yes |
Bill history
Prefiled and ordered printed; Offered 01-14-2026 26104985D
Referred to Committee on Finance
Fiscal Impact statement From TAX (1/26/2026 9:10 pm)
House subcommittee offered
Subcommittee recommends reporting with substitute (8-Y 1-N)
Subcommittee recommends reporting with substitute (9-Y 0-N)
Reported from Finance with substitute (22-Y 0-N)
Committee substitute printed 26106097D-H1
Read first time
Moved from Uncontested Calendar to Regular Calendar
Read second time
committee substitute agreed to
Engrossed by House - committee substitute
Read third time and passed House (97-Y 0-N 0-A)
Constitutional reading dispensed (on 1st reading)
Referred to Committee on Finance and Appropriations
Fiscal Impact statement From TAX (2/17/2026 3:55 pm)
Reported from Finance and Appropriations with substitute (15-Y 0-N)
Rules suspended
Constitutional reading dispensed (on 2nd reading) (40-Y 0-N 0-A)
Passed by for the day (Voice Vote)
Committee substitute printed 26108143D-S1
Read third time
Finance and Appropriations Substitute agreed to
Engrossed by Senate - committee substitute
Passed Senate with substitute Block Vote (40-Y 0-N 0-A)
Senate substitute agreed to by House (90-Y 5-N 0-A)
Enrolled
Bill text as passed House and Senate (HB854ER)
Signed by Speaker
Signed by President
Enrolled Bill communicated to Governor on March 14, 2026
Governor's Action Deadline 11:59 p.m., April 13, 2026
Fiscal Impact statement From TAX (3/24/2026 9:50 am)
Approved by Governor-Chapter 683 (effective 7/1/2026)
Acts of Assembly Chapter text (CHAP0683)
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