March 29, 2023
Re: Notice of Jurisdiction
Taxpayer: *****
Locality Assessing Tax: *****
Business Tangible Personal Property (BTPP) Tax
Dear *****:
This notice of jurisdiction is issued upon the application for correction filed by ***** (the “Taxpayer”) with the Department of Taxation. The Taxpayer appeals an assessment of Business Tangible Personal Property (BTPP) tax issued to the Taxpayer by ***** (the “City”) for the 2022 tax year.
The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections and public document cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site.
FACTS
The Taxpayer received an assessment of BTPP tax for the 2022 tax year that was more than 50% greater than the prior tax year. The Taxpayer filed an appeal with the Department, contending that the property at issue was overvalued by the City.
ANALYSIS
A taxpayer assessed with BTPP tax may appeal such assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the assessment, whichever is later, to the commissioner of the revenue or other local assessing official. See Virginia Code § 58.1-3983.1 B 1. If a taxpayer wishes to appeal an assessment from a locality to the Department, it must first file a local administrative appeal pursuant to the process set forth in Virginia Code § 58.1-3983.1 B. Once a proper local appeal has been filed, the locality must undertake a full review of the taxpayer’s claims and issue a written determination setting forth the facts and analysis in support of the locality’s decision. Pursuant to Virginia Code § 58.1-3983.1 D, only when a final local determination has been issued can a taxpayer file an administrative appeal with the Department if it wishes to contest any of the locality’s conclusions. Alternatively, a taxpayer may file an appeal with the Department if its appeal with the locality has been pending for more than one year and it provides the locality with at least 30 days written notice. See Virginia Code § 58.1-3983.1 B 6.
Virginia Code § 58.1-3983.1 B and the Guidelines for Appealing Local Business Taxes (the “Guidelines”), issued as Public Document (P.D.) 04-28 (6/25/2004), provide taxpayers with the procedure for appealing local business tax assessments. Although the Taxpayer states that it emailed the City with regards to the assessment, there is no indication that a local appeal has ever been filed with the City.
DETERMINATION
Because no local business tax appeal was filed, the Taxpayer must first file an appeal to the City pursuant to Virginia Code § 58.1-3983.1 and the Guidelines. Should the Taxpayer do so, the City should issue a final local determination in accordance with the Guidelines’ prescribed format for final local determinations. Once a final local determination is issued, the Taxpayer will have 90 days to file an appeal with the Department if it disagrees with the outcome. If the case has been pending with the City for more than one year, the Taxpayer may also appeal to the Department after giving the City the requisite notice.
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/4352.B