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State rules for taxpayer in Busch Gardens appeal lead to multi‑million‑dollar refund and reassessment; county paid $2.9M after offsets
Summary
County staff told the board a taxpayer appeal led the State Tax Commissioner to reclassify assets held by Busch Gardens from business tangible personal property to real estate for some years; initial abatement and interest were about $15.1 million, offset by $12.4 million in real estate tax assessed after reclassification, leaving approximately $2.9 million paid in December 2025.
County officials briefed the board on a multi‑year tax classification appeal involving Busch Gardens that required significant refunding and reassessment.
Commissioner of the Revenue Bradshaw summarized the appeal: a taxpayer petition beginning in early 2021 sought to recategorize much of its property from business tangible personal property (BTPP) to real estate for tax years covering calendar years 2017–2020. After procedural steps and an initial return of the filing for correction, the State Tax Commissioner issued a 2024 opinion siding with the taxpayer and ordered the county to change the classification where the law and timing allowed.
Treasurer Jenny Tomes explained the financial consequences under the Code of Virginia: localities must pay interest on tax refunds at their delinquency rate (the county's rate for delinquencies is 10 percent annually). Tomes said the amount of abated taxes plus interest was about $15,100,000; after the properties were reassessed as real estate, the taxpayer incurred an additional $12,400,000 in real estate tax liability that offset part of the refund, leaving an outstanding balance of roughly $2,900,000. A check for that amount was issued in December 2025.
Financial management services director Sharon McCarthy and the county's real estate director described valuation methods used going forward, including engaging a hospitality‑industry valuation firm and using income‑approach analysis to estimate fair market value. County staff said they expect net property tax revenue to increase going forward by an estimated $2.6 million annually as the properties will now be assessed as real estate at full market value.
