September 20, 2022
Re: Appeal of Personal Property Tax Assessment
Taxpayer: *****
Local Tangible Personal Property Tax
Dear *****:
This notice of jurisdiction is issued upon the application for correction filed by ***** (the “Taxpayer”) with the Department of Taxation. The Taxpayer seeks correction of assessments of tangible personal property tax for property he purchased in the ***** (the “City”) for the 2016 through 2020 tax years.
The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections cited are available on-line in the Law, Rules and Decisions section of the Department’s web site, located at www.tax.virginia.gov.
FACTS
The Taxpayer, purchased a motorcycle in Virginia. Subsequently, assessments of unpaid personal property tax were issued to the Taxpayer. The Taxpayer appeals, contending the vehicle was garaged in ***** (State A) during the tax years at issue and thus was not subject to tax in Virginia.
ANALYSIS
Under Virginia Code § 58.1-3983.1 D, the Department’s jurisdiction is limited to appeals from final local determinations concerning local business and mobile property tax assessments. See Public Document (P.D.) 17-142 (8/7/2017) and P.D. 18-205 (12/10/2018). Local business taxes include the machinery and tools tax, business tangible personal property tax, merchant's capital tax, and consumer utility tax. See Virginia Code § 58.1-3983.1 A. Local mobile property taxes include the tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers. Neither business nor mobile property taxes include tangible personal property tax assessed on a motorcycle purchased for personal use.
DETERMINATION
An assessment of tangible personal property tax on a motorcycle purchased for personal use is not an assessment over which the Department has jurisdiction to hear an appeal. The Taxpayer may appeal an assessment of tangible personal property tax directly to the locality pursuant to Virginia Code § 58.1-3980 or to the circuit court under the provisions of Virginia Code § 58.1-3984.
If you have any questions regarding this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/4164.Y