82-69 | Virginia Tax

Tax Type

Local Taxes

Description

New Legislation on real estate tangible personal property/machinery & tools taxes

Topic

Local Taxes Discussion

Date Issued

05-20-1982

Date: May 20, 1982

Subject: New Legislation concerning real estate tangible personal property, and machinery and tools taxes.

The 1982 Session of the General Assembly adopted several bills which affect the administration of the property tax. Brief summaries of these bills are as follows

HB 126

Amends § 58-16.5 to eliminate the existing procedure for determination of the exemption or partial exemption of certain generating equipment installed after December 31, 1974 for the purpose of converting from oil or natural gas to coal, wood, wood bark, wood residue, or to any other alternate energy source for manufacturing and any cogenerating equipment installed since that date. The method of granting the exemption is now left to the locality. Effective date is July l, 1982.

HB 308

Amends § 58-847 to permit local governing bodies to provide for extensions of time not to exceed 90 days, for filing returns of tangible personal property, machinery and tools, and merchants capital when good cause exists. If a taxpayer who has been granted an extension fails to file within the extended time the case shall be treated as though no extension had been granted. Effective date is July 1, 1982.

HB 528

Adopts § 58-835.1 to permit cities of more than 100,000 population and Fairfax and Chesterfield counties to prorate tangible personal property taxes on motor vehicles, trailers and boats. Arlington County and the City of Alexandria already have this authority. Effective date is July l, 1982.

HB 590

Amends § 58-835 to provide an exception from the January one assessment date for localities which tax certain property on a proportional monthly or quarterly basis and also defines the term tax day. Effective date is July l, 1982.

HB 511

Amends § 58-760.1 to extend tax relief for the elderly to the taxation of mobile homes. Existing local ordinances for tax relief for the elderly should be amended to bring them into compliance with this statute. Effective date is July 1, 1982.

SB 325

Amends § 58-760.1 to permit localities to exclude up to the first $5000 of any income received as permanent disability compensation by an owner for determination of eligibility for local tax relief for the elderly. Effective date is July 19 1982.

HB 324

Amends § 58-760 to require that the assessment of any multi-unit real estate leased primarily to residential tenants be made without regard to its potential value for conversion to condominium or cooperative ownership. This amendment is effective for assessments on and after January 19, 1934. All owners of income producing real estate, other than residential property of four units or less, may be required to submit income and expense statements to duly authorized assessment officials. The effective late of this is July 1, 1982.

HB 340

Amends § 58-16.2 to include real estate owned by the Virginia Port Authority in the State owned property liable for local service charges without exceeding the three percent threshold provided in the existing law. Effective date is January 19, 1984.

HB 372

Amends § 58-1142 to permit the commissioner of revenue or such other official to correct mere clerical errors made by others in connection with conducting a general reassessment. Effective date is July 19 1982.

HB 512

Amends § 58-1117.l to require localities to include the cost of publication of the notice of judicial sale of property as a part of the tax to be collected when payment is made even if court proceedings have not been initiated. Effective date is July 1, 1982.

HB 619

Amends §§ 58-769.8 and 58-769.10:1 to specify information that will be deemed a material misstatement of fact if incorrect on an application for use value assessment.

- 1) The number and identities of known owners
  2) The actual use of the property or the intentional misrepresentation of acreage.

Such material misstatement of fact, other than clerical error, requires the imposition of the roll-back tax and a 100 per cent penalty. The bill also allows localities to impose a use value assessment revalidation fee every fifth or sixth year. Effective date is July 1, 1982.

SB 59

Amends § 58-1147 to eliminate the provision that permits court redress on assessments on nonexistent property without a time limit. The general three year statute of limitations now applies to these situations. The effective date is July 1, 1982.

Rulings of the Tax Commissioner