February 08, 2022
Re: Notice of Jurisdiction
Taxpayer: *****
Locality: *****
Business Tangible Personal Property Tax
Dear *****:
This notice of jurisdiction is issued upon the application for correction filed by ***** (the “Taxpayer”) with the Department. The Taxpayer appeals an assessment of business tangible personal property tax issued to the Taxpayer as the owner of ***** (the “Company”) by ***** (the “County”) for the 2016 through 2020 tax years.
The following determination is based on the facts presented to the Department summarized below. The Code of Virginia section and public documents cited are available online in the Laws, Rules and Decisions section of the Department’s web site, located at www.tax.virginia.gov.
FACTS
The County issued an assessment of business tangible personal property taxes to the Company for the 2016 through 2020 tax years. The Taxpayer appealed to the County, contending she sold the Company in July 2016. The County made a small adjustment to the assessment because a new business was operating in the Company’s location but upheld the remaining balance of the assessment. The Taxpayer then filed an appeal with the Department.
ANALYSIS
Virginia Code § 58.1-3983.1 B and the Guidelines for Appealing Local Business Taxes (the “Guidelines”), issued as Public Document (P.D.) 04-28 (6/25/2004), provide taxpayers with the procedure for appealing local business tax assessments. The Guidelines define an assessment as a “determination as to the proper rate of tax, the measure to which the rate is applied, and ultimately the amount of tax . . . that is due.” In addition, the Guidelines require that a taxpayer’s appeal include a statement explaining why the assessment is erroneous. The Taxpayer did not allege any error in the determination of the amount of local business property tax due, rather she asserted that she was not responsible for the tax because she sold the Company in 2016. The Department has jurisdiction in local business property tax cases to resolve alleged errors in assessments. The proper identification of the person responsible for the assessment is beyond the scope of the local appeals process.
DETERMINATION
For the reasons stated above, the Department lacks jurisdiction to address this appeal. The County, however, is reminded that the chief assessing officer, in this case the County’s Commissioner of the Revenue, is required to issue and sign final local determinations. Employees working under the direction of a local Commissioner of the Revenue or other chief assessing officer are not permitted to issue final determinations unless expressly designated by such officer and proof of such designation is included with the final local determination. See P.D. 19-62 (6/17/2019). Further, in this case, the County’s final determination did not set forth the facts and legal authority in support of the County’s position on each point raised by the Taxpayer as required by the Guidelines. Although, as stated above, the Department lacks jurisdiction in this case for other reasons, the County should ensure proper local appeals procedures are being followed generally.
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/4009.X