October 4, 2019
Re: Notice of Jurisdiction
Taxpayer: *****
Locality Assessing Tax: *****
Business Tangible Personal Property (BTPP) Tax
Dear *****:
This notice of jurisdiction is issued upon the administrative appeal filed by ***** (the “Taxpayer”) with the Department of Taxation. The Taxpayer seeks correction of an assessment of business tangible personal property (BTPP) tax issued by the ***** (the “County”) for the 2018 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 online in the Laws, Rules and Decisions section of the Department’s website, located at www.tax.virginia.gov.
FACTS
The County issued an assessment of personal property tax to the Taxpayer, a ***** (“State A”) business, for a vehicle the County believed was garaged in its jurisdiction. The Taxpayer appealed to the Department, contending the vehicle was garaged at its headquarters in State A.
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. 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. See Virginia Code 58.1-3983.1 D. 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.
DETERMINATION
Because the Taxpayer did not appeal the assessment to the County first, the Department lacks jurisdiction to decide the Taxpayer’s appeal. The Taxpayer should review the appeals and rulings procedures described in Virginia Code § 58.1-3983.1 and the Guidelines for Appealing Local Business Taxes (the “Guidelines”), issued as Public Document (P.D.) 04-28 (6/25/2004). If the Taxpayer wishes to dispute the assessment, it must first file an appeal with the County. Once the County issues its final determination, the Taxpayer may file an appeal with the Department if it still disagrees with the outcome. Alternatively, the Taxpayer may file an appeal with the Department if its appeal with the locality has been pending for more than one year, provided the Taxpayer gives 30 days written notice to the County of its intent to file an appeal with the Department. The Taxpayer should review the appeals and rulings procedures described in Virginia Code § 58.1-3983.1 and the Guidelines.
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/2129.M