September 1, 2020
Re: Request for Advisory Opinion
Local Real Property Tax
Dear *****:
This will reply to your letter in which you (the “County”) seek an opinion regarding your authority to issue real property tax assessments to leaseholders of real property owned by tax-exempt entities.
The Code of Virginia sections and public documents cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site.
FACTS
The County asks whether it has the authority to issue assessments of local real property tax for the previous three tax years against taxpayers who are leasing real property from tax-exempt entities in its jurisdiction.
OPINION
The Department’s authority to issue advisory opinions regarding local tax matters is confined to the Business Professional and Occupational License (BPOL) tax pursuant to Virginia Code § 58.1-3703.1 and local mobile property and certain business taxes under Virginia Code § 58.1-3983.1. The Department’s authority to issue such opinions thus reflects its administrative appeals jurisdiction over local tax matters, and real property tax matters are generally not within the Department’s appeals jurisdiction. See Public Document (P.D.) 16-13 (3/1/2016) and P.D. 16-25 (3/08/2016). The Department, however, does have appeals jurisdiction regarding the value or assessment of tax resulting from a valuation of property made by the Department. See P.D. 11-201 (12/12/2011). The Department also has specific educational and reporting roles involving the local real estate appeals process with boards of equalization. See P.D. 03-92 (11/18/2003).
We have also consulted Title 58.1, Chapter 32 of the Code of Virginia governing real property tax generally and can find no express authorization for the Department to issue an opinion on this subject. The Department can only act to the extent the law allows.
Although it appears that the law prevents me from addressing this matter with a formal written opinion, I have several further suggestions that might assist you. The Department’s property team may be able to advise you informally. You may contact ***** at ***** for further assistance. In addition, the Attorney General’s Office may be able to assist you with a formal opinion on this subject, should you still wish to seek one.
If you have any further questions regarding this response, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3430.M