Document Number
19-61
Tax Type
BTPP Tax
Description
Tangible : Appeals - Jurisdiction
Tangible : Administration - Reconsideration
Topic
Appeals
Date Issued
06-17-2019

 

June 17, 2019

Re:  Request for Reconsideration:  Public Document 18-197
       Taxpayer:  *****
       Locality Assessing Tax:  *****
       Business Tangible Personal Property Tax

Dear *****:

This final state determination is issued pursuant to your request for reconsideration filed on behalf of ***** and ***** (the “Taxpayers”) with the Department of Taxation (the “Department”). The Taxpayers seek reconsideration of Public Document (P.D.) 18-197 (12/6/2018) and correction of assessments of business tangible personal property (BTPP) tax issued by ***** (the “County”) for the 2015 through 2018 tax years.

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

In P.D. 18-197, the Department determined that it lacked jurisdiction over the appeal for the 2015 tax year because the Taxpayers had proceeded under Virginia Code § 58.1-3980 instead of Virginia Code § 58.1-3983.1. The Department further determined that it lacked jurisdiction over the appeal for the 2016 through 2018 tax years because the Taxpayers’ local appeal sought correction of assessments the Taxpayers anticipated the County would issue. The Taxpayers request that the Department reconsider its determination in P.D. 18-197, asserting that the determination was based on misapplications of Virginia law and a misunderstanding of the facts.

ANALYSIS

2015 Assessment

It appears that the Taxpayers believe that the Department concluded it did not have jurisdiction over the appeal for the 2015 tax year because the Taxpayers had not filed an appeal with the circuit court. If so, the Taxpayers misconstrue the Department’s conclusion. The Taxpayers filed their local appeal under Virginia Code § 58.1-3980 for the 2015 through 2018 tax years. Alternatively, the Taxpayers filed their local appeal under Virginia Code § 58.1-3983.1 for the 2016 through 2018 tax years. The Taxpayers, therefore, proceeded only under Virginia Code § 58.1-3980 for the 2015 tax year. That statute does not provide for an administrative appeal to the Department in the event that a taxpayer disagrees with a locality’s final determination.

As the Department explained in P.D. 18-197, the administrative appeals process involving the Department under Virginia Code § 58.1-3983.1 D is separate and distinct from the general appeals process afforded to taxpayers with local tax grievances under Virginia Code § 58.1-3980. Should a taxpayer proceed to file an appeal with a locality under Virginia Code § 58.1-3980, its recourse, should it disagree with the locality’s final determination, is to appeal to the circuit court pursuant to Virginia Code § 58.1-3984. The Department is only permitted to consider appeals properly filled under the statutory process established under Virginia Code § 58.1-3983.1. 

2016 and 2017 Assessments

The Taxpayers assert that, although their initial administrative appeal to the County suggested the assessments for the 2016 and 2017 tax years had not been issued, the assessments had in fact been issued. The Taxpayers argue that the Department, therefore, has jurisdiction to consider its appeal for the 2016 and 2017 tax years. They further argue that their initial misunderstanding was based on inaccurate or misleading information provided by the County. 

The Taxpayers’ local appeal letter clearly appealed assessments it anticipated would be forthcoming for the 2016 and 2017 tax years. The County apparently issued such assessments in June 2018. As stated in P.D. 18-197, the Taxpayers were not permitted under Virginia Code § 58.1-3983.1 to file a local appeal for assessments that had not yet been issued. 

With respect to the Taxpayers’ contention that the County was at fault in not disclosing that initial assessments had, in fact, already been issued for the 2016 and 2017 tax years, those assessments had already been paid. As such, it stands to reason that the Taxpayers already had, or at least should have had, knowledge of those assessments. 

2018 Assessment

An assessment for the 2018 tax year was issued by the County after the Taxpayers’ initial appeal. The Taxpayers appealed that assessment to the County in October 2018, but the County has not issued a final determination. The Taxpayers assert that the Department now has jurisdiction over this assessment as well. 

Virginia Code § 58.1-3983.1 B 6 states, “[a]ny taxpayer whose administrative appeal to the commissioner of the revenue or other assessing official pursuant to this subsection has been pending for more than one year without the issuance of a final determination may, upon not less than 30 days’ written notice to the commissioner of the revenue or other assessing official, elect to treat the application as denied and appeal the assessment to the Tax Commissioner in accordance with provisions of subsection D.”  In this case, no final determination has been issued, the appeal has not been pending for more than one year, and the Taxpayers did not provide the County 30 days’ written notice.

DETERMINATION

After carefully considering the information provided, P.D. 18-197 was correct in concluding that the Department lacked jurisdiction to consider the Taxpayers’ appeal of BTPP tax assessments for the 2015 through 2018 tax years. The Taxpayers appealed the 2015 assessment under Virginia Code § 58.1-3980, which does not grant an administrative appeal to the Department. The Taxpayers’ local appeal for the 2016 through 2018 tax years only referenced forthcoming assessments pursuant to Virginia Code § 58.1-3983.1 and, therefore, was invalid on its face. The Taxpayers’ subsequent appeal for 2018 tax year has not received a final local determination or met the requirements of Virginia Code § 58.1-3983.1 B 6. 

This letter constitutes the Department’s final determination regarding the jurisdictional matters presented. The Taxpayers should review and follow the Department’s instructions in P.D. 18-197 and this letter, should they continue to seek administrative remedies with the County and the Department. 


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/1948
 

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Last Updated 08/06/2019 13:37