Tax Type
Individual Income Tax
Description
Taxes paid to another state; District of Columbia
Topic
Credits
Date Issued
08-21-1995
August 21, 1995
Re: Protective Claim: Individual Income Tax
Dear*****************
This will reply to your letter of June 1, 1995, in which you submit a protective claim for the refund of individual income tax you and your wife paid for taxable year 1989 as a result of being denied a credit for District of Columbia franchise tax payments.
During the 1991 legislative session, the General Assembly enacted an amendment to Code of Virginia § 58.1-332 specifically to prohibit individuals from claiming a tax credit for franchise taxes paid to other jurisdictions. he amendment was retroactively enacted to taxable years beginning on or after January 1, 1987.
The department recently litigated this issue in Giesecke v. Department of Taxation, Fairfax County Circuit Court No. L-124781 (1994). In Giesecke, the taxpayer challenged the retroactive application of the 1991 amendment. The Circuit Court of Fairfax County ruled in favor of the department and on April 13, 1995, the Virginia Supreme Court declined to hear the appeal in Giesecke.
Accordingly, your request for a protective claim must be denied. Please be aware this denial does not prevent you from filing your own suit in circuit court pursuant to Code of Virginia § 58.1-1825; however, your suit must be filed within one year of the date of this letter. Should you have any questions regarding this matter, please contact********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/9781L
Rulings of the Tax Commissioner