Bulletin Number
VTB 81-9
Tax Type
Local Taxes
Description
1981 Legislative Changes in Collection of Local Taxes
Topic
Collection of Tax
Local Taxes Discussion
Date Issued
05-30-1981
DATE: May 30, 1981
SUBJECT: 1981 Legislative changes in collection of local taxes
The 1981 General Assembly passed S.B. 753 which amends § 58-1014 of the Code of Virginia. This section grants powers to the sate and local governments for the collection of taxes. Currently, § 58-1014 provides that in addition to other remedies allowed by law, the collection of taxes may be enforced by warrant, motion for judgement at law, bill in chancery or by attachment before a general district court or a circuit court within this state in the same manner as the law provides for enforcement of demands between individuals. The amendment provides that collection enforcement by these additional remedies shall not be construed to either extend or restrict the Statute of Limitations applicable to the collection of taxes. The effective date of this bill is July 1, 1981.
H.B. 1463, of the 1981 General Assembly, amends § 58-1009 of the Code of Virginia and provides that taxes specifically assessed against goods and chattels distrained shall have priority over all security interests. Under current law, a security interest perfected prior to a distraint for taxes has priority over all taxes, except those specifically assessed against the goods and chattels distrained. In addition, the bill changes current law by providing that merchant's capital tax shall be deemed to be specifically assessed against all inventory in a merchant's possession at the time of distraint or at the time such inventory is repossessed by the holder of a security interest therein. The effective date of this bill is July 1, 1981.
Tax Bulletins