76890710.1-1011Virginia Decodedhttps://vacode.org2016ConservationActivities Administered By The Department Of Conservation And RecreationVirginia Conservation Easement ActTaxation1988, cc. 720, 891; 1993, c. 390; 1998, c. 487.Anderson v. Stuarts Draft Water Company87 S.E.2d 7561955-06-13https://www.courtlistener.com/opinion/1342069/anderson-v-stuarts-draft-water-company/ . . . . . . <abbr title="Court of Appeals">COA</abbr>http://law.lis.virginia.gov/vacode/10.1-1011/10.1-1700Definitions/10.1-1700/58.1-3230Special classifications of real estate established and defined/58.1-3230/58.1-3231Authority of counties, cities and towns to adopt ordinances; general reassessment following adoption of ordinance/58.1-3231/58.1-3232Authority of city to provide for assessment and taxation of real estate in newly annexed area/58.1-3232//10.1-1011/10.1/I/10.1/10.1-101158.1-3205Where an easement held pursuant to this chapter or the Open-Space Land Act (§ 10.1-1700 et seq.) by its terms is perpetual, neither the interest of the holder of a conservation easement nor a third-party right of enforcement of such an easement shall be subject to state or local taxation nor shall the owner of the fee be taxed for the interest of the holder of the easement.sectionAA1Assessments of the fee interest in land that is subject to a perpetual conservation easement held pursuant to this chapter or the Open-Space Land Act (§ 10.1-1700 et seq.) shall reflect the reduction in the fair market value of the land that results from the inability of the owner of the fee to use such property for uses terminated by the easement. To ensure that the owner of the fee is not taxed on the value of the interest of the holder of the easement, the fair market value of such land (i) shall be based only on uses of the land that are permitted under the terms of the easement and (ii) shall not include any value attributable to the uses or potential uses of the land that have been terminated by the easement.sectionBB1Notwithstanding the provisions of subsection B, land which is (i) subject to a perpetual conservation easement held pursuant to this chapter or the Open-Space Land Act (§ 10.1-1700 et seq.), (ii) devoted to open-space use as defined in § 58.1-3230, and (iii) in any county, city or town which has provided for land use assessment and taxation of any class of land within its jurisdiction pursuant to § 58.1-3231 or § 58.1-3232, shall be assessed and taxed at the use value for open space, if the land otherwise qualifies for such assessment at the time the easement is dedicated. If an easement is in existence at the time the locality enacts land use assessment, the easement shall qualify for such assessment. Once the land with the easement qualifies for land use assessment, it shall continue to qualify so long as the locality has land use assessment.sectionCC1