58.1-3286 - Mineral lands to be specially and separately assessed; severance tax.

§ 58.1-3286. Mineral lands to be specially and separately assessed; severancetax.

The several commissioners of the revenue shall, as soon as practicable afterJanuary 1 of each year, specially and separately assess at the fair marketvalue all mineral lands and the improvements thereon and shall enter the sameon the land books of their respective counties separately from other landscharged thereon.

The commissioner, in assessing mineral lands, shall set forth upon the landbook:

1. The area and the fair market value of such portion of each tract as isimproved 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 underdevelopment.

Notwithstanding any other provision of law and subject to the approval of theBoard of Supervisors of Buchanan County, the commissioner of the revenue ofthe county may reassess gas wells and related improvements on an annualbasis, provided that such gas wells and related improvements shall bereassessed in the general reassessment for the locality, as required by §58.1-3287, and provided further a settlement agreement between the County anda taxpayer may provide a methodology for determining fair market value.

In the alternative to the procedure outlined in subdivision 1 above, anycounty or city may impose by ordinance a severance tax on all coal and gasesextracted from the land lying within its jurisdiction. The rate of such taxshall 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 orgases and any common carrier to maintain records showing the quantities ofcoal and gases which they have produced or transported, respectively.

If the surface of the land is held by one person, and the coal, iron andother minerals, mineral waters, gas or oil under the surface are held byanother person, the estate therein of each and the relative fair market valueof their respective interests shall be ascertained by the commissioner. Ifthe surface of the land and the coal, iron and other minerals, mineralwaters, gas or oil under the surface are owned by the same person, thecommissioner shall ascertain the fair market value of the land, exclusive ofthe coal, iron, other minerals, mineral waters, gas or oils. He shall alsoascertain the fair market value of the coal, iron, other minerals, mineralwaters, 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 thevalue of the coal, iron, other minerals, mineral waters, gas and oils underthe surface.

(Code 1950, § 58-774; 1972, c. 715; 1976, c. 53; 1984, c. 675; 2009, c. 770.)