SB181Introduced in the Senate
Real property tax; partial exemption for repurposing underutilized structures for residential use.
Introduced by Angelia Williams Graves, District 21
What does this bill do?
Plain-English breakdown
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Official description
Real property tax; partial exemption for repurposing underutilized structures for residential use; local incentives. Permits localities to provide partial real estate taxation exemptions for converted real property where such conversion establishes a residential structure that has set aside at least 30 percent of the structure for households with a per capita income at or below 80 percent of the locality's median income or where the building owner is subject to an agreement with the Commonwealth or the locality regarding the provision of affordable housing. Localities have discretion to determine (i) whether a converted building qualifies for the partial exemption, (ii) any additional restrictions and conditions, (iii) whether the exemption is the amount equal to the increase in assessed value or a percentage of such increase resulting from the repurposing of the structure, and (iv) the length of time the exemption will run with the land, not to exceed 15 years. The bill provides that, at any time a building for which its owner claims a partial exemption no longer meets the requirements to receive such exemption, the locality may recapture all or a portion of the exemption granted in the immediately preceding year. Further, if a building owner that claims an exemption as described by the bill sells the building for which he is claiming the exemption and, after the sale, the property no longer meets the requirements described by the bill, the purchaser shall be subject to a penalty. The building owner shall provide written notification of the partial exemption to the purchaser. The bill also permits localities to grant tax incentives or provide regulatory flexibility to qualifying converted real property.
Where it stands
Acts of Assembly Chapter text (CHAP0994)
April 22, 2026
How did lawmakers vote?
House of Delegates votes
4 recorded votes · each counted separately
Senate votes
5 recorded votes · each counted separately
SenateStage: Senate concurred in Governor's recommendation (21-Y 18-N 0-A) · April 22, 2026
21
Yes
18
No
1
Absent or Not Voting
40 senators recorded in this Senate vote. Colors show vote categories only, not whether a vote was good or bad.
See how each senator voted
| Senator | District | Vote |
|---|---|---|
| Elizabeth Bennett-Parker | 5 | Yes |
| Michael Jones | 77 | Yes |
| Timmy French | 1 | No |
| Mark Obenshain | 2 | No |
| Chris Head | 3 | Absent |
| David Suetterlein | 4 | No |
| Travis Hackworth | 5 | No |
| Todd Pillion | 6 | No |
| William Stanley | 7 | No |
| Mark Peake | 8 | No |
Bill history
Prefiled and ordered printed; Offered 01-14-2026 26100919D
Referred to Committee on Finance and Appropriations
Fiscal Impact statement From TAX (1/23/2026 6:15 pm)
Reported from Finance and Appropriations (14-Y 0-N)
Rules suspended
Constitutional reading dispensed (on 1st reading) (40-Y 0-N 0-A)
Passed by for the day (Voice Vote)
Passed by for the day
Read second time
Engrossed by Senate (Voice Vote)
Read third time and passed Senate (40-Y 0-N 0-A)
Placed on Calendar
Read first time
Referred to Committee on Finance
Assigned HFIN sub: Subcommittee #2
House subcommittee offered
Subcommittee recommends reporting with substitute (11-Y 0-N)
Reported from Finance with substitute (17-Y 4-N)
Committee substitute printed 26108536D-H1
Read second time
Read third time
committee substitute agreed to
Engrossed by House - committee substitute
Passed House with substitute (70-Y 29-N 0-A)
House substitute agreed to by Senate (21-Y 19-N 0-A)
Enrolled
Bill text as passed Senate and House (SB181ER)
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 (3/20/2026 11:42 am)
Governor's recommendation received by Senate
Senate concurred in Governor's recommendation (21-Y 18-N 0-A)
House concurred in Governor's recommendation (65-Y 31-N 0-A)
Governor's recommendation adopted
Reenrolled
Reenrolled bill text (SB181ER2)
Signed by Speaker
Signed by President
Approved by Governor-Chapter 994 (effective 7/1/2026)
Acts of Assembly Chapter text (CHAP0994)
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