Can I sell land that is in land use?
Yes. A sale by itself does not bring rollback taxes: staying in land use taxation depends on a qualifying use, paid taxes and compliance, not on who holds title, so a buyer who keeps the use and does not rezone carries it on. The tax result turns on what the sale does to the land, such as a piece split off or a buyer who changes the use.
Three ways enrolled land changes hands, and the one that leaves the classification alone
Enrolled land usually leaves an owner's hands in one of three ways: the whole tract goes to a buyer who keeps farming it or growing timber on it, a piece is split off and sold, or a buyer takes a lot and builds a house on it. Only the first leaves both the use and the acreage untouched, so only the first can leave the classification exactly where it was.
The reason is one clause in the Code. Continuation in use value taxation depends on the land staying in a qualifying use, on the taxes being paid and on compliance with the article and the local ordinance, "and not upon continuance in the same owner of title to the land". A deed changes who owns the ground. It does not, by itself, change what the ground is used for.
| The sale | What happens to the classification | Where roll-back can start |
|---|---|---|
| The whole tract, to a buyer who keeps the use | It can continue under the new owner | Not from the sale itself, if the buyer does not rezone to a more intensive use and keeps the classified use |
| A piece split off and sold | The remainder continues if it still meets the minimum acreage and other conditions; a separated piece may qualify again in later years if it meets them on its own | On the separated piece, unless the resulting parcels meet the minimum acreage and are used for a qualifying purpose |
| A lot a buyer builds a house on | Wythe County's FAQ says a dwelling built on qualifying land brings roll-back on a one-acre house site | With the owner at the time the use changes; in Wythe's example, a buyer of five acres who builds |
Selling the whole tract: two things the buyer has to keep true
When the entire enrolled tract sells to one buyer, the Code sets two conditions for the change of owner to pass without roll-back, and both are about what the buyer does next.
- The new owner does not rezone. Liability does not attach on a change in ownership "if the new owner does not rezone the real estate to a more intensive use", unless a local ordinance adopted under subsection G provides otherwise.
- The new owner keeps the classified use. The land has to continue in the use for which it is classified, under the conditions the article and the local ordinance prescribe.
County pages describe the same thing from the assessor's side. Wythe County's FAQ says a parcel can remain in the land use assessment program as long as the property remains in a qualifying use. Pulaski County's FAQ says a new owner of land in the program receives a letter from the Assessment Office stating current and future requirements. Whether a particular buyer's plans keep the land qualifying, and what forms the county wants from a new owner, belong to the Commissioner of the Revenue in that county.
A working farm sold to someone who keeps farming it raises questions of its own about the farmhouse site, the state production standards, the barns and the ponds. Those are on selling a farm that is in the land use program.
Carving off a piece: the minimum acreage decides whether the split costs anything
Under Va. Code 58.1-3241, separating or splitting off a lot, by conveyance or other action of the owner, subjects the separated land to roll-back. The same section then protects what is left, and in one case the pieces too.
The land left behind keeps its classification without roll-back if it still meets the minimum acreage and the other conditions. Some splits escape the split-off roll-back altogether, depending on the acreage and use of the resulting parcels and, for a family subdivision below the minimum, on whether the locality has adopted that option; whether your county has is a question for its Commissioner of the Revenue.
Two more steps come with a split. An application must be submitted whenever the use or acreage of approved land changes, and a split changes the acreage of what remains. And when a buyer purchases part of a tract, Va. Code 58.1-3340 has the proceeds applied to the taxes on the entire tract, prorated by the ratio of the purchase price to the most recent assessed value of the whole tract; where the cost per acre of the piece is less than the assessed value per acre of the whole, or the assessing officer reasonably believes the price is below fair market value, the commissioner of the revenue may require an appraisal by a state-certified or state-licensed appraiser, and the proration then uses the greater of the appraised value or the purchase price. How that plays out on a given closing is for the commissioner and the settlement agent.
The split-off rule with its exceptions in full, and every other event that attaches roll-back, are set out in what triggers rollback taxes. Whether and when the piece may be sold under the county's subdivision ordinance, and what goes on the plat, is covered in selling just part of your land.
A lot a buyer builds on: the change in use comes after the deed
The third sale changes the use after the deed: the buyer takes a lot and builds a house on it. Wythe County's FAQ describes this sale and says a dwelling built on qualifying land brings a roll-back on a one-acre house site. The one-acre house site is Wythe's figure, and another county's Commissioner of the Revenue may describe its house sites differently.
Whose bill that roll-back is when the change comes after closing, including Wythe's own example of the five-acre buyer who builds, is taken up in who pays rollback taxes when land sells; no statute divides the bill between buyer and seller. How the amount is figured, year by year, is part of the land use program explained, and the short definition is under rollback taxes in the glossary.
The duties that ride with each kind of sale, and the desk that takes each question
Whichever way the land sells, one deadline sits with whoever owns it when something changes, and a few questions only one office can answer.
Report a change within sixty days
The owner of land that becomes liable for roll-back has sixty days to report the change in use or zoning to the commissioner of the revenue.
| The question | Who answers it |
|---|---|
| Whether a buyer's plans keep the land qualifying, and the forms for a new owner | The county's Commissioner of the Revenue |
| The county's roll-back interest rate, and whether it has adopted the family subdivision option | The Commissioner of the Revenue |
| Who bears roll-back between buyer and seller | The purchase contract, with the closing attorney or settlement agent |
| How taxes on a carved-off piece are divided, and whether an appraisal is required | The commissioner of the revenue and the settlement agent |
Selling a tract enrolled in land use, whole or in pieces?
Tell Lowell the county, the acreage and whether you picture one buyer or several. He can put an opinion of value on the tract whole or in pieces, and the roll-back figures stay with the Commissioner of the Revenue. No cost, no obligation.
Got it. Thank you.
We'll be in touch shortly with an honest read.
Questions this raises
Does a buyer have to file a new land use application after closing?
The Code does not tie the classification to the owner: continuation depends on the land staying in a qualifying use, the taxes being paid and compliance with the ordinance. It does require an application whenever the use or acreage of approved land changes. Counties handle new owners in their own way; Pulaski County's FAQ says a new owner receives a letter stating current and future requirements. What a particular county asks of a new owner is a question for its Commissioner of the Revenue.
Is a buyer told before closing that the land is in land use?
No state notice form is in force yet. Va. Code 58.1-3234.1 takes effect January 1, 2027, and directs the Department of Taxation to develop a written notice form telling a purchaser that the commissioner of the revenue or assessor can be asked about qualification and about the taxes and penalties a change in use may bring. Until then, a buyer asks the commissioner directly.
Where this page's facts come from
Every rule, office and figure above traces to one of these. Rules change; check the office before you act on one.
- Va. Code 58.1-3234, applications, and continuation not dependent on the same owner Virginia General Assembly
- Va. Code 58.1-3234.1, form of notice for real estate in the program (effective January 1, 2027) Virginia General Assembly
- Va. Code 58.1-3237, roll-back taxes Virginia General Assembly
- Va. Code 58.1-3241, separation of lots and split-offs Virginia General Assembly
- Va. Code 58.1-3340, tax lien and proration on the purchase of part of a tract Virginia General Assembly
- Frequently asked questions: land use assessment Wythe County, Virginia
- Land Use Value FAQ (PDF) Pulaski County, Virginia
- Commissioner of the Revenue: Special Assessment Land Program Carroll County, Virginia