City of Virginia Beach v. ESG Enterprises, Inc.

In this appeal, we consider whether Code § 58.1-3237 authorizes the City of Virginia Beach to assess “roll-back” 1 taxes against real property whose use has not changed even though the property has been rezoned to a classification which permits a more intensive use.

ESG Enterprises, Inc., a Virginia corporation, and The Doustan Partnership, a Virginia general partnership (collectively referred to as “the taxpayers”), executed a purchase agreement with the Virginia Beach Development Authority, a tax-exempt entity. The taxpayers agreed to sell approximately 120 acres of real property in Virginia…