Real property tax; classification of land and improvement in Cities of Charlottesville/Falls Church.

This legislation grants the cities of Falls Church and Charlottesville the authority to implement a split-rate property tax system. Under this model, local governments can tax land and the structures built upon it at different rates. By lowering taxes on buildings and increasing the tax rate on the underlying land, the bill aims to discourage speculative land hoarding and incentivize property owners to develop vacant or underutilized parcels. For residents in Falls Church, this change provides a new policy lever to address housing shortages and urban density goals. Proponents argue this approach promotes more efficient land use and boosts local economic development, while critics often express concerns regarding potential shifts in the tax burden for long-term property owners.