CODE OF VIRGINIA

MINERAL LANDS TO BE SPECIALLY AND SEPARATELY ASSESSED; SEVERANCE TAX (§
58.1-3286)

The several commissioners of the revenue shall, as soon as practicable after
January 1 of each year, specially and separately assess at the fair market value
all mineral lands and the improvements thereon and shall enter the same on the
land books of their respective counties separately from other lands charged
thereon.The commissioner, in assessing mineral lands, shall set forth upon the
land book:

   1.  The area and the fair market value of such portion of each tract as is
   improved and under development;

   2.  The fair market value of the improvements upon each tract; and

   3.  The area and fair market value of such portion of each tract not under
   development.

Notwithstanding any other provision of law and subject to the approval of the
Board of Supervisors of Buchanan County, the commissioner of the revenue of the
county may reassess gas wells and related improvements on an annual basis,
provided that such gas wells and related improvements shall be reassessed in the
general reassessment for the locality, as required by § 58.1-3287, and provided
further a settlement agreement between the County and a taxpayer may provide a
methodology for determining fair market value.In the alternative to the
procedure outlined in subdivision 1 above, any county or city may impose by
ordinance a severance tax on all coal and gases extracted from the land lying
within its jurisdiction. The rate of such tax shall not exceed one percent of
the gross receipts from such coal or gases. Any such county or city may further
require any producer of such coal or gases and any common carrier to maintain
records showing the quantities of coal and gases which they have produced or
transported, respectively.If the surface of the land is held by one person, and
the coal, iron and other minerals, mineral waters, gas or oil under the surface
are held by another person, the estate therein of each and the relative fair
market value of their respective interests shall be ascertained by the
commissioner. If the surface of the land and the coal, iron and other minerals,
mineral waters, gas or oil under the surface are owned by the same person, the
commissioner shall ascertain the fair market value of the land, exclusive of the
coal, iron, other minerals, mineral waters, gas or oils. He shall also ascertain
the fair market value of the coal, iron, other minerals, mineral waters, gas,
and oils and shall assess each at such ascertained values, stating separately in
every case the value of the surface of the land and the value of the coal, iron,
other minerals, mineral waters, gas and oils under the surface.The commissioner
of the revenue of any county or city is authorized to enter into agreements with
taxpayers pertaining to the fair market value of the property taxed under this
section. All such agreements entered into on or after January 1, 2013, but prior
to July 1, 2014, between the commissioner of the revenue of any county or city
and any taxpayer are deemed to be bona fide and are valid and enforceable.

HISTORY: Code 1950, § 58-774; 1972, c. 715; 1976, c. 53; 1984, c. 675; 2009, c.
770; 2014, cc. 48, 179.