March 1, 2016
Re: Taxpayer: *****
Locality Assessing Tax: *****
Local Real Property Tax
Dear *****:
This notice of jurisdiction is issued upon the application for correction filed by you on behalf of your client, ***** (the "Taxpayer"), with the Department. The Taxpayer seeks correction of the assessment of real property tax issued to it by the ***** (the "County") for the 2015 tax year.
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 Laws, Rules and Decisions section of the Department's web site, located at www.tax.virginia.gov.
FACTS
For the 2015 tax year, the County assessed real property tax on the Taxpayer's leasehold interest in certain real property located in the County. The Taxpayer filed an appeal with the Department, contending that the County did not sufficiently discount the assessment in accordance with the statutory formula applicable to leasehold interests.
ANALYSIS
Under Va. Code § 58.1-3350, an appeal of a real property tax assessment may be made to the board of assessors or board of equalization, as the case may be, or directly to the circuit court if the taxpayer is not first required to apply for relief with either of the boards. Alternatively, under Va. Code § 58.1-3980, a taxpayer may appeal a real property tax assessment to the local commissioner of the revenue or other assessing official if the taxpayer is seeking to correct an error made by such official. Virginia Code § 58.1-3980 provides that the procedural provisions of Va. Code § 58.1-3980 through § 58.1-3983 apply to appeals brought directly before the assessing official. None of those sections of the Code of Virginia, however, provide for an appeal to the Department, either directly or after a determination has been made by the assessing official.
Under Va. 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. Local business taxes include the machinery and tools tax, business tangible personal property tax, merchant's capital tax and consumer utility tax. See Va. Code § 58.1-3983.1 A. Local mobile property taxes include the tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers. See id. In addition, taxpayers may file appeals of local Business, Professional and Occupational License (BPOL) tax assessments with the Department pursuant to Va. Code § 58.1-3703.1 A 6.
DETERMINATION
The Code of Virginia does not permit taxpayers to file appeals of local real property tax assessments with the Department. As such, I find that the Department lacks jurisdiction to determine whether and to what extent the County's assessment of real property tax for the 2015 tax year was erroneous.
If you have any questions regarding this response, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1-6236462711.M