Tax Type
Local Taxes
Property Tax
Description
Loan by Federal Government
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
12-30-1969
This is in reply to your letter of December 22, 1969 which reads in part as follows:
"Research by this office has ascertained that the Babcock and Wilcox Company located in Campbell County has on loan (without charge) from the Federal Government certain machinery and equipment used by them in component manufacturing.
"Please advise as to whether Campbell County can or cannot assess such machinery and tools to either of the above.'
I am of the opinion that the county may not assess for taxation to either of the above, the machinery and equipment on loan (without charge) from the Federal Government.
The only authority to tax tangible personal property owned by the United States is found in §§ 58-831.1 and 58-831.2 of the Code of Virginia (1950), as amended.
The object of §§ 58-831.1 and 58-831.2 is to subject to local taxation personal property owned by any person and leased to the Federal Government, as well as personal property owned by the Federal Government and leased to any person engaged in business for profit.
Since the property in this instance is not leased but loaned to the Babcock and Wilcox Company, the statutes do not apply and the property is not subject to local taxation.
Attorney General's Opinion