General Reassessments are required by the Code of Virginia § 58.1-3252. Each locality must follow the provision set forth by the Code of Virginia to carry out a general reassessment at fair market value. Failure to do so could result in the withholding of state funds given to the locality. If the sales study ratio is below 70 or above 130, during a general reassessment year or annual assessment is considered proof the general reassessment failed to meet the burden of fair market value. Failure to comply will result in loss a of state funding. You can read more about failure to comply in Code of Virginia § 58.1-3259.

According to Code of Virginia § 58.1-3321, if a reassessment would produce more than a 1% increase in the TOTAL county real property tax that was levied for the previous year, then the local governing body is required to lower the tax rate. The governing body may raise the tax rate after holding a public hearing regarding the lowered tax rate. The public hearing would have to be advertised in a local publication 7 days prior to the hearing using the notice format in Code of Virginia §58.1-3321 and must be a separate hearing than the annual budget hearing.

Purpose of General Reassessments

To ensure that the assessed value of property is updated to keep that value consistent with what the property is worth on the open market as of January 1st, 2025, which is the tax date that was used for the new reassessment. The reassessment values become effective January 1, 2026, and the fiscal year 2026 tax rate adopted by the Board of Supervisors is applied to the reassessment values. By keeping the assessed value of property consistent with the market value, the burden of taxation is distributed evenly within Henry County.

General Reassessment Misconceptions

1. The assessment is NOT driven by the County's need to generate revenue. The Board of Supervisors does not issue a directive to the Commissioner of the Revenue to “raise” assessments to cover anticipated revenue needs.
2. The assessors do NOT “create” the assessed value of the property. The assessment is an estimation of the sale price that the property would have brought on January 1, 2025 based on an analysis of sales data, replacement costs and potential property income from 2024. 
3. The assessment is NOT the tax that you pay.  The tax that you pay is calculated by multiplying the tax rate, set by Board of Supervisors during the budget process, by the assessment. To calculate your tax, multiply the tax rate (currently .00555 or $0.555 per $100 of assessed value) by the total assessed value of your property.)

Review of Assessment Valuations

Henry County conducts a general reassessment every four years. The process of reviewing assessment valuations as of January 1 is referred to as General Reassessment. Annual assessments are made by utilizing accepted professional real estate mass appraisal methods, techniques and standards.

Mass appraisal is defined by the International Association of Assessing Officers (IAAO) as "the process of valuing a group of properties as of a given date, using standard methods, employing common data, and allowing for statistical testing." All real estate assessments are reviewed every four years, although not all assessments are changed. Building permits in non-reassessment years may also result in a change of value. 

Maintaining correct size and property characteristics on 50,000+ parcels is an important and ongoing effort which is essential to providing fair and equitable assessments.

Change in Assessment Notices

Properties either increasing or decreasing in value from the previous assessment will receive a Notice of Change in Assessment in accordance with the Code of Virginia § 58.1-3330. 

Properties not increasing or decreasing in value will not receive a Notice of Change in Assessment. This is a cost saving measure as postage continues to increase.

Analysis Begins with Recent Sales

The reassessment process begins with research of recent sales. The real estate appraisers may disqualify some transfers from the sales analysis if they are not considered to be an arms-length transaction.

Examples of transfers that may not be an arms-length transaction include family transfers, foreclosures, bank sales, estate sales and other distress sales, related to court orders or divorces. It is sometimes necessary for the appraiser to extensively research a property transaction.

Field Visits

A real estate appraiser will make a detailed inspection to confirm the accuracy of the improvement size and property characteristics.  An interior inspection is not required. However, interior inspections allow the appraiser to address less than or better than average condition, as well as other interior features of the property.  Interior inspections are made by appointment only.

Exterior field visits to the sold properties may be conducted to confirm the size of structure(s), property characteristics, outbuildings and site characteristics, as well as the property's relationship to the surrounding area.

Assessment Neighborhoods

Assessment neighborhoods are defined as a group of complementary land uses (a congruous grouping of inhabitants, buildings, or business enterprises). There are twelve neighborhoods. Each district has a residential and commercial neighborhood within the boundaries of Henry County.

Sales analysis and reassessment of properties is done by assessment neighborhoods. The analysis begins by measuring the recent arms-length transactions against their previous assessments. The Constitution of Virginia directs real estate assessments to be fair market value.

Market Value is defined by the IAAO as "the most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus, as of a specific date."

The assessment divided by the sales price provides the assessment-sales ratio which will suggest if reassessment is needed.

Assessment Using Income Approach

The Virginia Code § 58.1-3295 statute mandates the use of the income approach when assessing affordable rental housing, ensuring that valuation reflects rent restrictions and income limits. This is specifically for four or more units. Forms are sent to property owners to collect the required information. 

Solar Farms 

Base Land Valuation - Land used for solar farms was assigned a base rate of $11,000 per acre, determined by factors such as:

1. Size of the installation
2. Local market conditions
3. Expected lease payments
4. Higher market demand for utility-scale solar development

Targeted Residential Review - Residential dwellings located near solar farms were identified for impact analysis