Tax Type
Local Taxes
Description
Department does not have the authority to make determinations regarding the value of property subject to the local mobile property tax
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
12-07-2011
December 7, 2011
Re: Appeal of Final Local Determination
Taxpayer: *****
Locality: *****
Local Mobile Property Tax
Dear *****:
This is response to the letter submitted by ***** (the "Taxpayer") dated June 29, 2011, appealing the above referenced Final Local Determination. I apologize for the delay in responding to your letter.
The Taxpayer and his wife purchased a used 2010 recreational vehicle in 2011. The County issued to the Taxpayer its bi-annual personal property tax assessment for the first half of the 2011 tax year. The tax on the recreational vehicle was based on the used retail value listed in the 2011 National Automobile Dealer's Association (NADA) pricing guide.
On May 16, 2011, the Taxpayer wrote to the County contending that the tax assessed by the County should have been based on the purchase price of the recreational vehicle rather than the NADA value. The County issued a response to the Taxpayer indicating that it would treat the Taxpayer's letter as an appeal of the tax assessment. The Taxpayer replied with another letter and included additional information to be considered by the County.
The County issued a final determination upholding its assessment on the basis that Virginia law mandates the use of a pricing guide to determine the valuation of a recreational vehicle. The Taxpayer appeals the local final determination to the Department, contending the recreational vehicle should be valued at the arm's length purchase price and the County did not consider the additional information he submitted.
The Taxpayer avers that the recreational vehicle should be valued at the purchase price for purposes of the local tax on mobile property. The County contends that the recreational vehicle was properly valued in accordance with the NADA guide.
Under Va. Code § 58.1-3983.1, the Department has the jurisdiction to address appeals of local determinations of local business taxes and local mobile property tax. However, Va. Code § 58.1-3983.1 D 5 clearly states that the Tax Commissioner "shall not make a determination regarding the valuation of property subject to any tax other than a local business tax." Local business taxes, include machinery and tools tax, business tangible personal property tax, merchant's capital tax and, in certain cases, consumer utility tax. Local mobile property tax is that personal property tax on airplanes, boats, campers, recreational vehicles, and trailers.
The Taxpayer is requesting that the Department issue a determination on the value of a recreational vehicle subject to a local mobile property tax. Pursuant to Va. Code § 58.1-3983.1 D 5, the Department does not have the authority to make determinations regarding the value of property subject to the local mobile property tax. Therefore, the Department lacks jurisdiction to address the Taxpayer's appeal.
The Code of Virginia sections cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's website. If you have any questions concerning this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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- Craig M. Burns
Tax Commissioner
- Craig M. Burns
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AR/1-4827999926.B
Rulings of the Tax Commissioner