What Is Land Use Taxation in Virginia, and Could It Lower Your Woodlawn Farm's Tax Bill?

Land use taxation is a Virginia program that lets a county tax qualifying farm and forest land on what it is worth in that use instead of its market value, under Code of Virginia § 58.1-3230 and the sections that follow it. Carroll County, which includes Woodlawn, has adopted it, so yes, it can lower the yearly tax bill on land that qualifies.

The catch is that the savings are a deferral, not a gift. They can come back due if the land stops qualifying.

The Carroll County Commissioner of the Revenue lists three classes: agricultural land with at least five acres, horticultural land with at least five acres, and forest land with at least 20 acres. State law also allows an open space class, but Carroll County's ordinance covers only the first three.

Acreage only opens the door. Under the Virginia Department of Agriculture and Consumer Services standards in the Virginia Administrative Code, farm land generally needs five consecutive years of production for sale before it qualifies, with a few exceptions.

Forest land has its own test. The Virginia Department of Forestry standards require the owner to certify a planned program of timber management and soil conservation.

On paper, a pasture that just sits there is a different thing from a hayfield that gets cut and sold every summer.

Carroll County's ordinance has the Commissioner set two values for each enrolled parcel, a use value and a fair market value. The tax bill is figured from the use value.

Those use values come from estimates that Virginia Tech's Land-Use Value Assessment program develops for the State Land Evaluation Advisory Council. Virginia Tech reported a statewide average use value of $958 per acre for tax year 2026.

The gap between the two values is deferred, not forgiven. Under Code of Virginia § 58.1-3237, land that changes to a use that does not qualify owes rollback taxes for the current year and the five years before it, plus interest.

Roanoke County's guidance on rollback taxes notes that a change in use or a split of parcels may trigger them. If you are thinking about carving off a building lot, make a phone call before anyone pulls out a survey stake.

Carroll County's ordinance says applications go to the Commissioner of the Revenue on or before November 1 for the next tax year. Each parcel on the land book needs its own application, and a new one is required whenever the use or acreage changes. The county offices are up the road in Hillsville.

At Avante Realty Group, we believe knowing the area matters as much as knowing the property. If you are shopping for acreage in Woodlawn, ask whether a tract is enrolled and how it is being used today, then browse our current listings with that question in mind.

The Commissioner has the final word on what qualifies, and a tax professional can speak to your own numbers. If you own land around Woodlawn and want to talk through what you have, give us a call or send a note. We would love to come out and walk it with you.