Forestland provides many benefits to landowners, but also to communities. Landowners directly realize timber, wildlife and recreational values, while the benefits of watershed protection, clean air and scenic beauty are enjoyed by society at large. Realizing this, the Virginia Code enables localities to provide use value taxation that can assist owner in keeping their land as forests. Under use-value taxation, properties are taxed based on the productive value of the land rather than the current market value, which results in lower property taxes.
For county and city governments, maintaining forest land is beneficial, as land devoted to forest land use generally requires less cost in providing services than more intensive uses. However, property in forest land use does result in less revenue to local governments. As a result, the General Assembly established the Forest Sustainability Fund in 2022 for localities to apply for an allocation from the Fund to help offset lower, or forgone tax revenue. Forgone revenue is the fair market value of forest land minus the forest use value of forest land times the locality tax rate.
The Code states that monies will be used for public education, outdoor recreation or forest conservation.
Who is Eligible
Local county and city governments with forest use value assessment may apply.
To Apply
An application notice will be sent to each locality with forest use value taxation in October 2022, with an application deadline of November 15, 2022.
The information required is:
- Basic locality contact information, including a W-9 tax form
- A copy of the local ordinance that established forest use taxation
- The amount of forgone revenue due to forest land use taxation
Apply through the VDOF’s Forestry Grants System Access Portal.
Additional Resources
Code of Virginia Forest Sustainability Fund
VDOF’s Forestry Grants System Access Portal
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Explore All Financial Assistance Programs
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