Tax Type
Corporation Income Tax
Description
Retroactive effect of legislation
Topic
Computation of Income
Date Issued
03-14-1997
THE SHERWIN-WILLIAMS COMPANY, Plaintiff v.
COMMONWEALTH OF VIRGINIA DEPARTMENT OF TAXATION, Defendant
Law No. LB-2423-4; P.D.
CIRCUIT COURT FOR THE CITY OF RICHMOND, VIRGINIA
March 14, 1997
Retroactive Legislation
FINAL ORDER
THIS CAUSE, which has been regularly docketed and matured, came before the Court to be heard upon the cross motions for summary judgment filed by the parties and the memoranda in support thereof; the pleadings previously filed herein; and was argued by counsel on February 13, 1997.
UPON CONSIDERATION WHEREOF, the Court finds that this case is controlled by the decision of the Supreme Court of Virginia in Colonial Pipeline Company v. Commonwealth and that the Commonwealth of Virginia Department of Taxation's interpretation of the 1990 amendment to § 58.1-302 of the Code of Virginia of 1950 was proper, in that the amendment pertains to taxable years beginning on or after January 1, 1990. For a calendar year taxpayer such as the plaintiff, the amendment applies to all of calendar year 1990 and subsequent years. The provisions of Article IV, § 13 of the Constitution of Virginia and those of § 1-12 of the Code apply only to the date on which a legislative act takes effect, not to whether legislation has retroactive effect. The proper inquiry with respect to retroactive legislation is whether it is consistent with principles of due process and whether the period of retroactive effect is reasonable. It is the finding of this Court that the legislation which is the subject of this litigation was effective for tax years beginning on or after January 1, 1990 and that the retroactive effect of that legislation is consistent with that in Colonial Pipeline and is not unreasonable.
WHEREFORE, IT IS HEREBY ADJUDGED, ORDERED AND DECREED, that the Motion for Summary Judgment of the plaintiff is DENIED and the Motion for Summary Judgment of the defendant, Commonwealth of Virginia Department of Taxation, is GRANTED. A certified copy of this order shall be mailed by the Clerk to all counsel of record.
ENTER: 3/14/97
JUDGE SIGNED
I ASK FOR THIS: A copy,
SIGNED
Teste: Bevill M. Dean, Clerk
Mary G. Morris
D.C.
Senior Assistant Attorney General
Counsel for the Defendant
Office of the Attorney General
900 East Main Street
Richmond, Virginia 23219
Counsel for the defendant
SEEN AND OBJECTED TO:
SIGNED
Pamela M. Johnson, Esquire
The Sherwin-Williams Company
101 Prospect Avenue, N.W.
Cleveland, Ohio 44115
Counsel for the Plaintiff
Rulings of the Tax Commissioner