Tax Type
General Provisions
Description
1980 Legislative Digest
Topic
Reports
Date Issued
06-01-1980
1980
LEGISLATIVE DIGEST
VIRGINIA DEPARTMENT OF TAXATION
Department of Taxation
P.O. Box 6-L Richmond, VA 23282
June, 1980
P.O. Box 6-L Richmond, VA 23282
June, 1980
CONTENTS
INTRODUCTION
STATE TAXES
General
Bank Taxation
Capital Not Otherwise Taxed
Excise Taxes
Income Tax
License Taxes
Recordation Taxes
Sales and Use Tax
LOCAL TAXES
General
License Tax
Merchants' Capital Tax
Personal Property Tax
Real Property Tax
INDEX OF BILLS AND RESOLUTIONS
INTRODUCTION
This digest is published by the Department of Taxation as a convenient reference guide to bills affecting state and local taxation that were enacted by the 1980 Session of the General Assembly. It is not intended as a definitive interpretation of the law, but should be useful to state and local officials as well as citizens in understanding the enactments. With regards to state taxation, the enactments summarized here are only those affecting taxes administered this department. Other state taxes such as corporate franchise or gross receipts or gasoline taxes are not dealt with here.
The digest is organized in two parts: state taxes and local taxes. With each part the specific tax subjects are arranged alphabetically with the bills beneath them in numerical order. Senate bills and resolutions appear first, followed by House Bills and resolutions. An index of bills and resolutions appears at the end of the digest.
STATE TAXES
GENERAL
SENATE BILL NO. 468 (Chapter 663)
This act amends §§ 58-847, 58-964, 58-1140.1 and 58-1160 and adds a new section 58-1160.1 to increase the ceiling interest rate on delinquent taxes for the counties, cities, and towns from eight percent annually to ten percent annually.
The act further provides that for taxable years beginning on and after January 1, 1980, the interest rate on overpayments and underpayments of taxes imposed by the Department of Taxation shall be the relevant rate of interest established under § 6621 of the Internal Revenue Code and shall be computed separately for each period that tie rate is different.
The act contains an emergency clause and is effective April 4, 1980 except that sections 58-1140.1, 58-1160, and 58-1160.1 of the act are effective retroactively for tax years beginning on and after January 1, 1980.
HOUSE BILL NO. 990 (Chapter 633)
This act amends §§ - 58-151.01, 58-435, 58-441.38, 58-757.1, 58-757.23, 58838.17, 58-1118, 58-1118.1, 58-1119, 58-1130, 58-1134, 58-1136, and 58-1137 and in Chapter 2 of Title 58 adds sections 58-48.6, 58-48.7 and 58-48.8 and in Article 1 of Chapter 22 of Title 58 sections 58-117.20 and 58-1119.1 and repeals §§ 58-151.32, 58-441.41 and 58-685.34, to substantially change the laws of Virginia which govern tax procedures. Provisions which have undergone revision include the procedures for obtaining relief from erroneous assessments, and requirements on the Department of Taxation in the issuance of rulings and the promulgation of regulations.
New requirements include issuance of regulations subject to the Administrative Process Act and making available for public inspection all regulations, orders, court opinions, and policy statements. The act brings standardization of appeals procedures and the statute of limitations for assessing additional tax and for claiming refunds. The bill also shortens the time permitted the Commissioner for filing a petition for rehearing of proceedings under §§ 58-1130 to 58-1132 or 58-1134 to 58-1136 from 6 months to 21 days. The act is effective July 1 , 1980.
BANK TAXATION
HOUSE BILL NO. 994 (Chapter 578)
This act adds in Title 58 a chapter numbered 10.1 consisting of sections numbered 58-485.01 through 58-485.018, and repeals Chapter 10 of Title 58, consisting of §§ 58-465 through 58-485, and Chapter 10.1 of Title 58 consisting of sections number 58-485.1 through 58-485.20, all sections relating to the taxation of banks and trust companies.
The act repeals the present bank stock tax (Title 58, Chapter 10) end the transitional bank net worth franchise tax (Title 58, Chapter 10.1) and replaces them with a new "franchise tax measured by net capital" (Title 58, Chapter 10.01). The net capital of a bank is determined by adding together its capital, surplus and undivided profits and deducting therefrom (1) the prior year's assessed value of real estate owned on January one of the current year, (2) the book value of tangible personal property otherwise taxed, (3) the portion of capital attributable to U.S. obligations, based on the percentage of U.S. obligations to total bank assets, (4) the amount of retained earnings and surplus of subsidiaries to the extent included in the gross capital of the bank, (5) reserves for loan tosses and marketable securities, if included in bank's capital.
The act provides for a rate of $1.00 for each $100.00 of net capital for tax years 1980 and 1981, and a rate of $9.00 for each $100.00 of net capital for the tax year 1982, and no tax thereafter. It provides for a 20 percent state and 80 percent local split of revenues` through the allowance of a credit against the state tax for the amount paid to cities, towns, and counties. It also provides that in no case shall the tax liability of a bank as imposed for tax years 1980, 1981 and 1982 be less than that imposed under the bank stock tax in 1979. If the liability is greater than that for 1979, the act provides rules for apportioning the excess. The act provides that any local ordinance adopted not later than September 1, 1980, is effective for the entire year. Finally, the act provides that if the franchise tax rate in excess of one dollar on each one hundred dollars becomes effective, banks would be entitled to seek refunds back to tax year 1976 for an erroneous assessment, and if the refunds are denied, would be entitled to remedies allowed under current law.
The act is effective for tax years 1980, 1981 and 1982. It will expire December 31, 1982.
HOUSE JOINT RESOLUTION NO. 131
This resolution continues the Joint Subcommittee of the House and Senate Finance Committees studying the Virginia Bank Stock Tax. The joint subcommittee is to expand its study to take in the methods of taxation of all lending institutions in the Commonwealth including, but not limited to, banks, savings and loan associations, and credit unions, to determine whether such institutions are taxed fair and equitably. The joint subcommittee is to report by November 15, 1981.
CAPITAL NOT OTHERWISE TAXED
HOUSE BILL NO. 980 (Chapter 427)
This act amends § 58-411 to revise the method by which "the excess" of bills and accounts receivable over bills and accounts payable is determined for construction contractors utilizing the percentage of completion method of accounting by increasing accounts receivable by underbillings and increasing accounts payable by overbillings. The act is effective July 1, 1980.
EXCISE TAXES
HOUSE BILL NO. 122 (Chapter 316)
This act amends §§ 3.1-796.'( through 3.1-796.6 and 3.1-796.9 and adds in Chapter 27 of Title 3.1 an article numbered 8.1, consisting of sections numbered 3.1-796.01 through 3.1-796.020 and an article numbered 10, consisting of sections numbered 3.1-796.11:1 through 3.1-796.11:10, and repeals Article 8 of Chapter 4 of Title 3.1 consisting of sections numbered 3.1-777 through 3.1-796, to allow for the promotion of poultry and egg products through the abolishment and reestablishment of the Virginia Poultry Products Commission and the establishment of the Virginia Egg Commission. This promotion will be funded by increasing the current excise tax rate of 3 cents per standard case of 30 dozen eggs to 5 cents per standard case. The act also allows for a referendum among producers of poultry products to determine if an excise tax shall be imposed on poultry products produced and processed in Virginia in order to fund the promotion of these products. The act is effective July 1, 1980.
INCOME TAX
SENATE BILL NO. 131 (Chapter 371)
This act amends § 58-597 to clarify the application of the State income tax and State franchise tax imposed on pipeline transmission companies by providing a formula for determining the amount of net income derived from sales of natural (or manufactured) gas for consumption by purchasers.
In addition, the act requires that income or gross receipts from sales of manufactured gas, as well as natural gas, are taxable for income or gross receipts tax purposes. The act is effective for taxable years beginning on and after January 1, 1980.
HOUSE BILL NO. 358 (Chapter 82)
This act amends §§ 58-588 to require corporations engaged in pipeline transmission of manufactured gas to file a report to the State Corporation Commission each year on all of its real and tangible property and the locality wherein the property is located. The act also amends § 58-597 to require that such companies pay the franchise tax on gross receipts derived from the business of distributing and selling manufactured gas. (But see S. B. 131 above.) The act is effective on and after January 1, 1981.
HOUSE BILL NO. 570 (Chapter 629)
This act amends § 58-151.1 to exclude from Virginia income withholding tax the wages paid to actors or crew members by an individual or corporation which processes, edits, and markets, outside the Commonwealth, a (1) motion picture feature film, (2) television series or commercial, or (3) promotional film. The provisions of the act are restricted to individuals and businesses whose activity in Virginia relating to film production is less than 90 days in the tax year. The act also provides that employers shall file with the State Tax Commissioner a list of the names and social security numbers of each actor or crew member who is a resident of the Commonwealth and is compensated by the employer. The act is effective January 1, 1981.
HOUSE JOINT RESOLUTION NO. 169
This resolution continues for an additional year the Joint Subcommittee of the House and Senate Finance Committees Studying the Virginia Individual Income Tax. The Joint Subcommittee to Study the Individual Income Tax was established pursuant to a 1978 resolution and in response to a need to examine the broad interrelationships of various federal and state tax reform issues. Included in the original resolution was a mandate to study the equity of the income tax structure, the interrelationship between inflation and the progressivity of the tax structure, conformity to the federal income tax structure, the impact of recent and anticipated federal legislative changes on Virginia taxpayers, the marriage penalty, and the use of tax credits in the use of standard deduction. The Subcommittee filed a report to the 1980 session (Senate Document No. 16) but did not formulate recommendations. This resolution would continue the work of the study committee so that recommendations could be made to the 1981 legislative session. The subcommittee is to report by October 1 , 1980.
LICENSE TAXES
SENATE BILL NO. 314 (Chapter 266)
This act amends § 58-272 to provide that the State license tax paid for every theatrical performance or public performance or exhibition does not vary with the number of inhabitants of the locality where the performance occurs. This act sets the fee at $2.00 per performance or $6.00 for each week of continuous performances or $200.00 annually regardless of the size of the locality. The act is effective July 1, 1980.
RECORDATION TAXES
SENATE BILL NO. 116 (Chapter 652)
This act amends § 58-64 to provide for the restructuring of the format of this section and the removal of unnecessary language. The change in format does not alter the intent of this section. Certain transfers made pursuant to a will or inter vivos trust are also exempted from the state recordation tax when the transfer is made solely to comply with the dispositive provisions in the trust. The act is effective July 1, 1980.
SALES AND USE TAX
SENATE BILL NO. 27 (Chapter 109)
This act amends § 58-685.32 to correct it by changing "State Corporation Commission" to the correct agency "Department of Aviation". This act also deletes the requirement on the Department of Aviation to request proof that the tax is paid prior to the aircraft license being issued. The act is effective July 1, 1980.
SENATE BILL NO. 29 (Chapter 367)
This act amends § 58-685.29 to change conflicting language between § 58-685.32 which requires that the aircraft sales tax be paid before making application to the Department of Aviation for a license and § 58-685.29 which levies a 2% sales tax on aircraft "licensed" In this state, to clarify that the aircraft sales and use tax applies to aircraft that are "required to be licensed in this state." The act is effective July 1, 1980.
SENATE BILL NO. 62 (Chapter 610)
This act amends § 58-441.6 to reinstate the exemption from the sales and use tax for tangible personal property purchased for use or consumption directly and exclusively in basic research in the experimental or laboratory sense, as well as research and development. The Retail Sales and Use Tax Regulations had provided this exemption until January 1, 1979. Therefore, the act is effective retroactive to January 1, 1979.
SENATE BILL NO. 63 (Chapter 611)
This act amends §§ 58-441.6 and 58-441.15 to exempt from the sales and use tax tangible personal property, necessary for agricultural production, to be affixed to real property owned or leased by a farmer, when purchased by either a farmer or a contractor for installation by the contractor. Structural construction materials do not qualify under this exemption. The act is effective July 1, 1980. However, any tax collected on the exempt materials since July 1, 1979, will be refunded upon application by the farmer.
SENATE BILL NO. 73 (Chapter 753)
This act amends §§ 58-441.3 and 58-441.6 to accomplish the following: 1) to exempt from the sales tax charges for gift wrapping performed by a nonprofit organization; 2) to exempt from the sales and use tax tangible personal property purchased for use or consumption by a licensed nonprofit home for adults as defined in Virginia Code § 63.1-172A; and 3) to exempt from the sales and use tax historical documents, manuscripts, paintings and art objects acquired by a nonprofit historical society or association. The act is effective July 1, 1980.
SENATE BILL NO. 162 (Chapter 756)
This act amends § 58-441.6 and adds a new section 58-441.49:3 in order to exempt from the 3 percent State sales and use tax artificial or propane gas, firewood, coal or home heating oil used for domestic consumption. Fuels purchased by an individual for business, commercial, or industrial purposes would not qualify for the exemption. The 1 percent local option sales and use tax would continue to apply to these purchases unless exempted by an ordinance adopted by the governing body of a county, city or town. The act is effective July 1, 1982.
SENATE BILL NO. 260 (Chapter 617)
This act amends § 58-441.6 to exempt from the sales and use tax insulin and insulin syringes when purchased by or behalf of an individual for his own use. (Present law already exempts insulin when sold on prescription.) The act is effective July 1, 1980.
SENATE BILL NO. 297 (Chapter 618)
This act amends §§ 58-441.6 and 58-685.31 to conform the present exemptions from the sales and use tax and the aircraft sales and use tax to new federal law. This clarification is required as a result of the Federal Civil Aeronautics Board and the State's Bureau of Aeronautics decision to stop issuing certificates of convenience and necessity which previous law required for an exemption from these taxes. The act is effective July 1, 1980.
HOUSE BILL NO. 179 (Chapter 621)
This act amends § 58-441.6 to codify the exemption from the sales and use tax, administratively allowed by the department, for tangible personal property used directly in preparing and maintaining textile products by an industrial processor engaged in the commercial leasing or rental of laundered textile products. The act is effective July 1, 1980.
HOUSE BILL NO. 282 (Chapter 81)
This act amends § 58-441.6 to extend the exemption from the sales and use tax for school textbooks sold by a nonprofit institution of learning to textbooks sold by any dealer provided the textbooks have been certified by a department or instructor of the institution of learning as required textbooks for students attending courses at the institution. The act is effective July 1, 1980.
HOUSE BILL NO. 523 (Chapter 755)
This act amends § 58-441.34 to require dealers selling items of tangible personal property through vending machines to report the tax on the wholesale price of he items sold. It also requires that the rate of tax on such items be 5% (4% state, 1% local), rather than, the previous 4%. The act is effective July 1, 1982.
HOUSE BILL NO. 544 (Chapter 627)
This act amends § 58-441.15 to classify as retailers for sales and use tax purposes persons engaged in selling and installing fences, venetian blinds, window shades, awnings, storm windows and doors, floor coverings, as distinguished from floors themselves, cabinets, kitchen equipment, window air conditioning units or other like or comparable items. The act is effective retroactive to January 1, 1979.
HOUSE BILL NO. 631 (Chapter 225)
This act adds in Title 58 a chapter numbered 13.1 consisting of §§ 58-730.5 and 58-730.6, all sections relating to a sales tax on fuel sold within certain transportation districts.
This act imposes a sales tax, subject to the provisions of the Retail Sales and Use Tax Act, of 2 percent on the retail price of motor fuels in every city and county which is a member of a transportation district operating a rapid heavy rail commuter mass transportation system on an exclusive right-of-way and a bus commuter mass transportation system owned, operated or controlled by an agency or commission as defined in § 15.1-1344. An additional 2 percent sales tax will be imposed on July 1, 1982. Funds from the tax will be collected by the Department of Taxation and deposited in a special fund account for monthly distribution to the applicable transportation district commission. The State Tax Commissioner will promulgate regulations for the registration of dealers and the reporting of the tax and formulate a bracket system for the tax.
The act also specifies that each city or county in which such tax is in effect shall reduce the real estate tax rate or a combination of the real estate tax rate and other locally levied taxes so that in the year following the first full fiscal year in which the 2 percent tax is imposed and in the year following the first full fiscal year in which the increase to 4 percent is imposed, a revenue reduction will result equalling the amount which would have been allocated to the city or county for rail or bus services but is paid by the commission from the tax levy.
The act further provides that the refund provisions for taxation of motor fuel under Title 58, Chapter 13, Article 3 and Chapter 14.1 will apply to this tax as well.
The act is effective July 1, 1980, with the additional 2 percent levy to be effective July 1, 1982.
HOUSE BILL NO. 960 (Chapter 631)
This act amends § 58-441.6 to exempt from the sales and use tax broadcasting, transmission and distribution equipment and parts and accessories and towers used by cable television systems. The act is effective July 1, 1980.
LOCAL TAXES
GENERAL
SENATE BILL NO. 468 (Chapter 663)
See STATE TAXES - GENERAL
HOUSE BILL NO. 239 (Chapter 49)
This act amends § 58-46 to permit a local tax official to disclose whether a business is licensed in a locality. The act is effective July 1, 1980.
HOUSE BILL NO. 472 (Chapter 501)
This act amends § 58-841 to provide that the Commonwealth's attorney must appeal a levy imposed by the governing body of a county when petitioned to do so by one (1) percent of the registered voters, but no fewer than 50. Previously a local levy had to be appealed by the Commonwealth's Attorney upon petition of six (6) property owners of the county. The act is effective July 1, 1980.
HOUSE BILL NO. 632 (Chapter 226)
This act adds a new section 15.1-37.3:5 to allow the governing body of any county, city or town to designate any of its continuing resources of revenue, or portions thereof, as a stable and reliable source of revenue as a prerequisite to public law 96-184 which wilt be used to pay any of its mass transit operating and debt service expenses. The act is effective July 1, 1980.
LICENSE TAX
SENATE BILL NO. 431 (Chapter 736)
This act amends § 58-266.1 to allow any county, city or town to establish a two tier license tax on vending machine operators. For operation of ten or more coin machines the license tax could be up to $200. For the operation of less than ten coin machines the governing body would have discretionary authority to impose a license tax of any amount less than $200. The act is effective July 1, 1980.
HOUSE BILL NO. 159 (Chapter 318)
This act amends § 58-266.1 to allow a county, city or town to impose the gross receipts tax on coin-operated machines only on the share of receipts actually received by the operator. The act is effective January 1 , 1981 .
HOUSE BILL NO. 955 (Chapter 716)
This act amends § 58-371.2 to clarify that agents and attorneys-in-fact of guaranty, indemnity, fidelity and security companies are exempt from obtaining a certificate from the Judge of the Circuit Court and a revenue license. However, if such an agent or attorney-in-fact enters into bonds for bail, appearances, costs or appeal in criminal cases, then such agent or attorney-in-fact would still have to obtain a certificate from the Judge of the Circuit Court which will then authorize the agent or attorney-in-fact to enter into bonds in any other county or city and which will subject him to rules of conduct or procedure by the court in which he acts. The act is effective July 1, 1980.
MERCHANTS' CAPITAL TAX
HOUSE BILL NO. 142 (Chapter 317)
See PERSONAL PROPERTY TAX.
HOUSE BILL NO. 143 (Chapter 412)
See PERSONAL PROPERTY TAX.
PERSONAL PROPERTY TAX
SENATE BILL NO. 491 (Chapter 343)
This act amends § 58-884 to allow commissioners of the revenue, at their option, to produce personal property books in the form of microfilm, microfiche, or any other similar microphotographic process. The act is effective July 1, 1980.
HOUSE BILL NO. 63 (Chapter 742)
This act adds a new section 15.1-686.4 to provide that by local option counties operating under the county manager plan may levy a personal property tax on motor vehicles, trailers and boats that have acquired situs in the locality after the tax day, for the pro rata portion of the tax year that the property has situs within the locality. The local option ordinance must provide for a pro rata refund of the amount paid if property loses its tax situs after the tax day or if property is sold after the tax day and it must provide exemption for any year or portion of year for which the property tax was paid to another jurisdiction in this State. Also, if a county resident purchases personal property from a county resident, the taxpayer selling the property will receive a refund of a pro rata share of the year's tax and the purchases will be assessed on the same pro rata basis. The act is effective July 1, 1980.
HOUSE BILL NO. 64 (Chapter 120)
This act proposes an amendment to the Constitution of Virginia that would allow the General Assembly by general law to authorize local jurisdictions to exempt from local property taxation personal property designed for continuous habitation (i.e. mobile homes) and occupied as the sole dwelling of persons age 65 or over or persons permanently and totally disabled. This proposed amendment will be submitted to the voters on the November, 1980 election ballot. If approved by the majority of those voting, the amendment will become effective on January 1, 1981. See also HJR 43 below.
HOUSE BILL NO. 69 (Chapter 314)
This act amends § 58-829.1:1 to provide that equipment used by farmers or farm cooperatives qualifying under § 521 of the Internal Revenue Code to manufacture industrial ethanol be classified as separate items of taxation and that the governing body may exempt in whole or in part from taxation or provide a different tax rate on such equipment, provided that the materials from which the ethanol is derived consist primarily of farm products. The act is effective July 1, 1980.
HOUSE BILL NO. 142 (Chapter 317)
This act amends §§ 58-837, 58-874 and 58-875 to require commissioners of the revenue to prescribe the forms to be used by taxpayers in reporting machinery and tools, tangible personal property and merchants capital owned within the locality. The bill also requires that each taxpayer owning machinery and tools or business personal property must provide information on the total capitalized cost by year of purchase, if requested by the commissioner of revenue.
The commissioners of revenue are also given the authority to require to be filed and to examine filed returns for tangible as well as intangible personal property and income of each taxpayer. Refusal of the taxpayer to supply required information on the value and ownership of tangible as well as intangible personal property and income will be deemed a misdemeanor and will result in liability for a fine. The act is effective July 1, 1980.
HOUSE BILL NO. 143 (Chapter 412)
This act amends §§ 58-412, 58,-829, 58-829.7, and 58-831 and adds a new section 58-829.2:1 to provide that the following classifications of tangible personal property shall be valued by means of a recognized pricing guide or a percentage or percentages of original cost: automobiles except antique motor vehicles, taxicabs, and motor vehicles designed for use by the handicapped; motorcycles, campers, and other recreational vehicles, and boats under five tons and boat trailers; and aircraft, other than that taxed as capital.
The following classifications of tangible personal property shall be valued by means of a percentage or percentages of original cost: trucks and other vehicles as defined in § 46.1-1; all tangible personal property employed in a trade or business other than that taxed as capital or as other classifications of tangible personal property; and machinery and tools and boats weighing five tons or more. However, trucks less than two tons may be valued by means of a recognized pricing guide.
All boats weighing five tons or more are specified as a separate class of property to be valued by a percentage or percentages of original cost. The rate of assessment and the tax rate for such boats may not exceed the rates applicable to other classes of tangible personal property.
The act provides that all tangible personal property used in a research and development business shall be valued by means of a percentage or percentages of original cost and that the ratio of assessment and the rate of tax of this property shall not exceed the rates applied to machinery and tools.
Mobile homes shall be valued according to § 58-829.3, which allows appraisal on the basis of square footage of living space, in lieu of any other method.
The act further provides that machinery and tools shall be valued by means of depreciated cost or a percentage or percentages of original total capitalized cost.
The act also provides that the commissioners of revenue may take into account the condition of the property and must make available to taxpayers upon request a description of their valuation methods.
The act is effective for tax years beginning on and after January 1, 1981, except that the provisions setting up separate tangible personal property classifications for boats weighing under five tons and boats weighing five tons or more is effective for tax years beginning January 1, 1980.
HOUSE BILL NO. 144 (Chapter 744)
This act amends § 58-33 to provide that the State Tax Commissioner shall provide commissioners of the revenue with information and assistance in the assessment of personal property including the maintenance of a reference library, and the conducting of instructional programs. The act is effective July 1, 1980.
HOUSE BILL NO. 165 (Chapter 80)
This act proposes an amendment to § 6 of Article X of the Constitution of Virginia to allow the General Assembly to permit local governing bodies to exempt or partially exempt from taxation any energy generating equipment installed after December 31, 1974 for the purpose of converting from oil or, natural gas to coal, wood, wood bark, wood residue, or to any other alternate energy source for manufacturing, and to exempt any co-generation equipment installed since December 31, 1974, for use in manufacturing. This proposed amendment will be submitted to the voters on the November, 1980 election ballot. If approved by the majority of those voting, the amendment will become effective on January 1, 1981. See also HJR 34 below.
HOUSE BILL NO. 243 (Chapter 105)
This act amends §§ 46.1-65 and 58-834 to provide that for the-purpose of imposing motor vehicle license fees and personal property taxes, the locality authorized to levy these taxes will be the domicile of the owner of the personal property when it cannot be determined where the personal property is normally garaged, stored, or parked. The act is effective July 1, 1980.
HOUSE BILL NO. 911 (Chapter 382)
This act amends § 58-831.2 to include in tangible personal property subject to local taxation, property that is borrowed from otherwise made available to a business by any federal, state or local government unit. The act is effective July 1, 1980.
HOUSE JOINT RESOLUTION NO. 34 (Chapter 761)
This act proposes an amendment to § 6 of Article X of the Constitution of Virginia to allow the General Assembly to permit local governing bodies to exempt or partially exempt from taxation any energy generating equipment installed after December 31, 1974, for the purpose of converting from oil or natural gas to coal, wood, wood bark, wood residue, or to any other alternate energy source for manufacturing, and to exempt any co-generation equipment installed since December 31, 1974, for use in manufacturing. This proposed amendment will be submitted to the voters on the November, 1980 election ballot. If approved by the majority of those voting, the amendment will become effective on January 1, 1981. See also House Bill No. 165 above.
HOUSE JOINT RESOLUTION NO. 43 (Chapter 762)
This act proposes an amendment to the Constitution of Virginia that would allow the General Assembly by general law to authorize local jurisdictions to exempt from local property taxation personal property designed for continuous habitation (i.e. mobile homes) and occupied as the sole dwelling of persons age 65 or over or persons permanently and totally disabled. This proposed amendment will be submitted to the voters on the November, 1980 election ballot. If approved by the majority of those voting, the amendment will become effective on January 1, 1981 . See also House Bill No. 64 above.
REAL PROPERTY TAX
SENATE BILL NO. 46 (Chapter 2)
This act amends § 58-792 to provide that an additional sixty day extension of the filing date of a real property assessment of a locality may be granted when the delay results from the creation of a real property identification map. The act is effective January 31, 1980.
SENATE BILL NO. 107 (Chapter 263)
This act amends § 58-985 to provide that after the third anniversary of the original due date and after a lien on real estate has been recorded in the clerk's office due to delinquent taxes or levies on the real estate, any officer collecting the taxes or levies must forthwith give the payment to the clerk who will then provide a receipt, record the payment, and release the existing lien. The act is effective July 1 , 1980.
SENATE BILL NO. 119 (Chapter 75)
This act amends § 58-769.7 to provide that any city having a density of population greater than 5,000 per square mile may by ordinance prescribe that land devoted to open space uses consist of a minimum of two acres rather than the currently required minimum of five acres. The act is effective July 1, 1980.
SENATE BILL NO. 180 (Chapter 656)
This act amends § 58-760.1 to provide that a dwelling held jointly by a husband and wife may qualify for local option property tax relief if either spouse is permanently and totally disabled. The total combined income limit for the elderly or permanently and totally disabled is raised from $12,000 to $15,000. The combined income limit is raised to $16,000 from $13,000 when the local ordinance provides that the exemption or deferral be reduced by the amount the combined income exceeds $15,000. The combine income limit is raised to $18,000 from $15,000 when a locality has a combination program of exemptions and deferrals and real estate taxes are deferred for those individuals with a total combined income exceeding $15,000.
This act also increases the net combined financial worth constraint from $50,000 to $55,000.
The act is effective July 1, 1980.
SENATE BILL NO. 193 (Chapter 290)
This act adds a new section 58-761.1 to provide that the life tenant of any property in which a remainder interest has been acquired by the United States for addition to the National Park or National Forest Wilderness Systems will receive a credit on his real estate tax in the amount of the compensation paid to the locality by the United States government for local real property tax losses. This credit may not exceed the amount of tax due on the property. The act is effective for tax year 1980 and thereafter.
SENATE BILL NO. 195 (Chapter 657)
This act amends § 58-1142 to provide the same three year time constraint for the correction of erroneous assessments resulting from clerical or calculation errors as is provided for other erroneous assessments. The act also provides that an error in the valuation of property subject to the land use assessment rollback tax may be corrected within three years of the assessment of rollback taxes. The act is effective July 1, 1980.
SENATE BILL NO. 254 (Chapter 661)
This act amends § 58-787 to require, for purposes of Augusta and Rockbridge Counties only, that the composition of the board of assessors appointed by the circuit court be composed of one freeholder from each magisterial district or one from each election district, with the board being composed of at least three members. The act is effective July 1, 1980.
SENATE BILL NO. 389 (Chapter 493)
This act amends § 58-769.8 to allow localities to impose a revalidation fee every sixth year on property owners required to annually revalidate their applications for land use assessment. The revalidation fee shall not exceed the original application fee. The act is effective July 1, 1980.
SENATE BILL NO. 413 (Chapter 735)
This act amends § 58-1145 to provide that Part 4 of the Rules of the Supreme Court of Virginia (Pretrial Procedures/Depositions and Production at Trial) shall apply to local court proceedings to correct erroneous property tax assessments when the difference between the assessed value and the fair market value claimed by the taxpayer exceeds $100,000. The act is effective July 1, 1980.
HOUSE BILL NO. 161 (Chapter 414)
This act amends Clause 2 of Chapter 359 of the Acts of Assembly of 1979 to provide that the provisions of § 58-758.1 relating to the taxation of leasehold interests be effective for taxes assessed as of July 1, 1981 and thereafter. The previous effective date for this provision was July 1, 1980.
HOUSE BILL NO. 162 (Chapter 124)
This act amends § 58-792.02 to provide that all property appraisal cards or sheets held by the local assessing officer, except those containing information made confidential by § 58-46, must be open for inspection and review by any taxpayer after the notice of reassessment is mailed as provided in § 58-792.01, instead of when the official assessment is filed in the clerk's office. The act is effective July 1, 1980.
HOUSE BILL NO. 163 (Chapter 125)
This act amends § 58-795.2 to provide that a locality will have failed to assess real property at one hundred percent when the results of the Department of Taxation's official assessment/sales ratio study show the county or city to have a sales assessment ratio lower than seventy (70) percent for the year the general reassessment or annual assessment is effective. The act is effective July 1, 1981.
HOUSE BILL NO. 246 (Chapter 497)
This act amends § 58-811.1 to provide that a building newly completed during a tax year may, at local option, be taxed proportionally between the assessed value of the partial construction existing on January 1 of the tax year and the assessed value of the building at the time it becomes substantially complete or fit for use. The act is effective July 1, 1980.
HOUSE BILL NO. 256 (Chapter 569)
This act amends § 58-776 to permit cities with a population of thirty thousand or less that are assessing at one hundred percent of fair market value to reassess real estate at four year intervals, rather than the otherwise required two-year intervals, at the option of the city council. The act is effective July 1, 1980.
HOUSE BILL NO. 314 (Chapter 417)
This act amends §§ 58-760.2 and 58-760.3 to provide that a locality providing an exemption for rehabilitated residential, commercial, or industrial real estate may establish zones or districts within which the exemption may be available. The locality may also reduce the amount of exemption given in annual steps throughout the exemption period. Local ordinance may also provide for exemption for multi-family residential units that have been rehabilitated through replacement for multi-family use. The act further restricts exemptions on certain historic landmarks. The act is effective July 1, 1980.
HOUSE BILL NO. 340 (Chapter 666)
This act amends § 58-760.1 to allow localities to freeze property tax payments for the elderly or disabled at the level of the year the taxpayer turned sixty-five or became disabled or the year the ordinance became effective, whichever is later. The act is effective July 1, 1980.
HOUSE BILL NO. 345 (Chapter 241)
This act amends § 58-769.15 to provide that in any county or city with a land use assessment program in which the average value of any category of land use exceeds the recommendations of: value of the State Land Evaluation Advisory Committees, the circuit court will appoint a board of equalization to review land use assessment when petitioned to do so by twenty-five (25) owners of property assessed under the program, provided that a board of equalization does not already exist. The act is effective July 1, 1980.
HOUSE BILL NO. 363 (Chapter 726)
This act amends § 15.1-242 to allow the governing body to defer local improvement tax payments of certain permanently and totally disabled individuals and provides that eligibility for this deferral be determined in accordance with the criteria established in § 58-760.1. The act is effective July 1, 1980.
HOUSE BILL NO. 406 (Chapter 327)
This act amends § 30-19.04 to require that before a General Assembly committee may consider the exemption of property from taxation under Article X, § 6(a)(6), a resolution, or a request for a resolution, for the exemption of the property must have been presented to the governing body of a locality. The act is effective July 1, 1980.
HOUSE BILL NO. 599 (Chapter 276)
This act amends § 58-960 to provide that the holder of the mortgage or deed of trust on property may receive the tax bill on the property provided this is certified within the mortgage or deed of trust. However, upon nonpayment of the tax bill, the past due notice will be sent to the owner. The act is effective July 1, 1980.
HOUSE BILL NO. 714 (Chapter 360)
This act amends § 58-804 to allow the commissioners of revenue, at their option, to prepare their land books in the form of microfilm, microfiche, or any other similar microphotographic process. The act is effective July 1, 1980.
HOUSE BILL NO. 718 (Chapter 673)
This act amends § 58-760.1 to provide that for property jointly owned by a husband or wife a local option property tax relief may be granted if either spouse is permanently and totally disabled. It also provides for a prorated exemption or deferral of property taxes for the then current taxable year when a change in ownership to a spouse who is not permanently and totally disabled occurs because of the death of his/her qualified spouse. The act is effective July 1, 1980.
HOUSE BILL NO. 770 (Chapter 396)
This act amends § 58-785.1 to specify the procedure to be used in determining the local property tax rate to be established to insure that real property tax levies as a result of an annual or biennial assessment or general / reassessment do not increase more than one (1) percent above the previous year's real property tax levies without conducting a public hearing. The act is effective July 1, 1980.
HOUSE BILL NO. 789 (Chapter 363)
This act amends § 58-769.10 to provide that if the owner of property subject to land use assessment, or his agent, requests the rezoning of this property to a more intensive use, the land is no longer eligible for land use assessment. The property is not subject to the roll back tax until an actual change in use occurs. The act is effective July 1, 1980.
HOUSE BILL NO. 877 (Chapter 508)
This act amends § 58-769.8 and adds a section numbered 58-769.8:1 to provide that property assessed under a local option land use program will be removed from this program on November 1 if the real property taxes due on the property remain delinquent after notice of delinquency has been sent to the taxpayer. The act is effective July 1 , 1980.
HOUSE BILL NO. 981 (Chapter 675)
This act adds a new § 58-16.5 to allow local governing bodies to exempt or partially exempt from real property taxation any energy generating equipment installed after December 31, 1974, for the purpose of converting from oil or natural gas to coal, wood, wood bark, wood residue, or to any other alternate energy source for manufacturing, and to exempt any co-generation equipment installed since December 31, 1974, for use in manufacturing. The length of time the exemption is in force may be determined by the locality. The act is effective January 1, 1981, provided a constitutional amendment is approved by a majority of the voters to authorize this exemption.
HOUSE JOINT RESOLUTION NO. 84
This resolution establishes a joint legislative subcommittee to study the service charges that are imposed on certain tax exempt real property in lieu of property taxes. The subcommittee is to report by December 1, 1980.
HOUSE JOINT RESOLUTION NO. 197
This resolution establishes a joint subcommittee of the Finance Committees of the House of Delegates and the Senate to conduct a study of the method of taxation of leasehold interests and to recommend appropriate legislation to alleviate the inequities that presently exist. The subcommittee is to report prior to the 1981 Session of the General Assembly.
INDEX OF BILLS AND RESOLUTIONS
SENATE BILL OR JOINT RESOLUTION NO.
SB 27 State-Sales and Use (Aircraft)
SB 29 State-Sales and Use (Aircraft)
SB 46 Local-Real Property (Assessment)
SB 62 State-Sales and Use (Research)
SB 63 State-Sales and Use (Farmer's Property)
SB 73 State-Sales and Use (Gift wrapping; Homes for Adults)
SB 107 Local-Real Property (Liens)
SB 116 State-Recordation (Transfers)
SB 119 Local-Real Property (Use-Value)
SB 131 State-Income (Pipeline Transmission)
SB 162 State-Sales and Use (Heating Oil)
SB 180 Local-Real Property (Elderly/Disabled Relief)
SB 193 Local-Real Property (Life Tenant)
SB 195 Local-Real Property (Erroneous Assessments)
SB 260 State-Sales and Use (Insulin)
SB 297 State-Sales and Use (Aircraft)
SB 314 State-License (Theatrical Performances)
SB 389 Local-Real Property (Use-Value)
SB 413 Local-Real Property (Erroneous Assessments)
SB 431 Local-License Tax (Vending Machines)
SB 468 State/Local-General (Interest)
SB 491 Local-Personal Property (Personal Property Books)
HOUSE BILL OR JOINT RESOLUTION NO.
HB 63 Local-Personal Property (Pro Rata Basis)
HB 64 Local-Personal Property (Mobile Homes)
HB 69 Local-Personal Property (Industrial Ethanol)
HB 122 State-Excise (Eggs)
HB 142 Local-Personal Property (Forms)
HB 143 Local-Personal Property (Valuation) HB
HB 144 Local-Personal Property (Assessment Assistance)
HB 159 Local-License (Vending Machines)
HB 161 Local-Real Property (Leasehold Interests)
HB 162 Local-Real Property (Property Appraisal Cards)
HB 163 Local-Real Property (Assessment)
HB 165 Local-Personal Property (Energy Conversion)
HB 179 State-Sales and Use (Textile Products)
HB 239 Local-General (Secrecy of Information)
HB 243 Local-Personal Property (Domicile)
HB 246 Local-Real Property (Assessment)
HB 256 Local-Real Property (Assessment)
HB 282 State-Sales and Use (Textbooks)
HB 314 Local-Real Property (Exemption)
HB 340 Local-Real Property (Elderly/Disabled Relief)
HB 345 Local-Real Property (Use Value)
HB 358 State-Income (Pipeline Transmission)
HB 363 Local-Real Property (Elderly/Disabled Relief)
HB 406 Local-Real Property (Exemption)
HB 472 Local-General (Appeal of Levy)
HB 523 State-Sales and Use (Vending Machines)
HB 544 State-Sales and Use (Reclassification)
HB 570 State-Income (Withholding Exclusion)
HB 599 Local-Real Property (Mortgage or Deed of Trust)
HB 631 State-Sales and Use (Transportation Districts)
HB 632 Local-General (Mass Transit)
HB 714 Local-Real Property (Land Books)
HB 718 Local-Real Property (Disabled Relief)
HB 770 Local-Real Property (Assessment Procedures)
HB 789 Local-Real Property (Use-Value)
HB 877 Local-Real Property (Use-Value)
HB 911 Local-Personal Property (Assessment)
HB 955 Local-License (Exemptions)
HB 960 State-Sales and Use,(Broadcasting Equipment)
HB 980 State-Capital Not Otherwise Taxed (Construction Contractors)
HB 981 Local-Real Property (Energy Conversion)
HB 990 State-General (Tax Procedures)
HB 994 State-Bank Stock (Repeal)
HJR 34 Local-Personal Property (Energy Conversion)
HJR 43 Local-Personal Property (Mobile Homes)
HJR 84 Local-Real Property (Service Charges)
HJR 131 State-Bank Stock (Study)
HJR 169 State-Income (Study)
HJR 197 State-Real Property (Leasehold Interests)
Legislative Summaries