November 16, 2021
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will respond to your letter in which ***** (the “Taxpayer”) seeks correction of fines and costs from a traffic infraction conviction in ***** (the “County”).
FACTS
Publicly available court records indicate that the Taxpayer was found guilty of a traffic infraction in the County’s circuit court and a judgment was entered for fines and costs. After the County filed a claim for a refund set off with the Department, the Taxpayer filed an appeal with the Department, arguing that the court failed to lawfully deliver a conviction and failed to deliver a judgment or notice of penalties, fees or fines due.
DETERMINATION
Under Virginia Code § 58.1-1821, the Department has appeals jurisdiction over taxes the Department administers on behalf of the Commonwealth. The Department also has appeals jurisdiction over local business, professional and occupational license (BPOL) tax assessments and certain local business and mobile property tax assessments. See Virginia Code § 58.1-3703.1 and 58.1-3983.1. The Department has no appeals jurisdiction over the imposition of court fines and costs.
The Taxpayer should be aware that delinquent fines and costs issued by Virginia courts for criminal and civic offenses may be sent to the Department’s court debt collection section for collection under the authority granted by Virginia Code § 19.2-349. This section merely collects these amounts on behalf of the Virginia court system. Such delinquent judgments are subject to the tax collection provisions of Title 58.1 of the Code of Virginia. See Virginia Code § 19.2-349 D. As such, they may be subject to collection under the Setoff Debt Collection Act, Virginia Code § 58.1-520 et seq., whereby a taxpayer’s Virginia individual income tax refund may be used to offset a debt the taxpayer owes to another claimant agency, which may include a Virginia court. See also Public Document (P.D.) 06-42 (4/10/2006). In this case, however, it does not appear that the Taxpayer has had any such refunds withheld to date.
Although the Department is given authority under Virginia Code § 19.2-349 to collect delinquent court fines and fees using the same tax collection procedures described under Title 58.1, this does not convert court fines and fees into a “tax” for purposes of appealing the fines and fees to the Department. Any adjustment to the underlying debt would have to be performed by the claimant agency, i.e., the court in this case.
Accordingly, the Department has no jurisdiction over the Taxpayer’s appeal. If you believe that the County circuit court has improperly assessed fines and costs, I suggest that you raise the issue with the court Clerk’s office or consult legal counsel regarding any other available options you may have.
The Code of Virginia sections cited are available on-line at www.tax.virginia.gov in the Laws, Rules & Decisions section of the Department’s web site. If you have any questions regarding this determination, you may call ***** at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3858.B