This guest post is from Madison LaRowe, Regent Law 2L:
A topic that I came across that I found
interesting was how family cemeteries can help reduce property taxes in
Virginia. According to Article X, Section 6(a)(3) private or public burial
grounds are exempt from taxation if they are not operated for profit. The
property would be excluded from state and local tax, and it would also be
excluded from inheritance taxes. This is also codified in section
58.1-3606(A)(3) of the Virginia code.
Even if you are allowed to have a private
cemetery that can get you a tax cut, there are restrictions in place for
cemeteries that must be observed for the cemetery to be allowed. Section 57-26
lays out such restrictions, with the main one being that the cemeteries must be
authorized and subject to the zoning ordinances of the governing body where the
cemetery will be located. These ordinances will likely include restrictions as
to how far the burial must be from residences on the property or how far the
burial must be from land owned by the government which have wells located on
them. Often a document containing the burial plot depicted on a map of the
property will have to be submitted with the appropriate government authority
for the private cemetery to be approved and to receive tax exempt status.
I thought this was interesting because it
can also be looked at as a way to give to your family after you pass on. By
allowing your family to bury you on your family’s property rather than a public
cemetery they could have less property tax and that piece of the property would
not be subject to inheritance taxes. I just thought this was a unique way to
give something to your loved ones after you die.
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