Land-Use Value Assessment Updates

Abstract

The Land-Use Value Assessment Program (LUVA) has provided tax relief for qualifying agricultural, horticultural, open space, and forest land for over 50 years by allowing land to be assessed at its use value rather than market value, helping preserve rural land. LUVA at Virginia Tech develops these use-value estimates for the Virginia Department of Taxation using two State Land Evaluation Advisory Council (SLEAC) approved methods, the capitalized rental rate approach and the capitalized income approach, which are reviewed annually by SLEAC. For Tax Year 2026, SLEAC adopted LUVA’s updated estimates, which show an average statewide decrease of $65 per acre from 2025, bringing the average use-value to $958 per acre. Sixty percent of localities experienced decreases, reflecting recent agricultural challenges such as lower government payments, declining grain prices, and high input costs. While localities are not required to adopt these values, lower use-values can reduce tax burdens and encourage the continued preservation of Virginia’s rural and productive lands.