Bulletin Number
VTB 83-3
Tax Type
Property Tax
Description
1983 Legislative Changes
Topic
Property Subject to Tax
Date Issued
05-16-1983
Virginia Department of Taxation
83-3
DATE: May 16, 1983
SUBJECT: Property Taxation: 1983 Legislative Changes
The purpose of this bulletin is to announce the enactment by the 1983 Session of the General Assembly of certain laws affecting the area of local property taxation. Unless otherwise noted, all the Acts are effective July 1, 1983.
Inventory in Transit: § 58-834.3 was added to exempt from property taxation cargo, merchandise and equipment in transit, but stored temporarily in a marine terminal or airport for transport by vessels or aircraft to a point outside the Commonwealth. Inventory in transit in interstate or foreign commerce is currently exempted from state or local property taxation by the U.S. Constitution. It is our understanding that the Act is intended only to statutorily ensure the exemption of such property in transit while temporarily stored in a marine or airport terminal for transport by vessels or aircraft to a point outside the State. (Chapter 325, House Bill 246)
Proration Clarification: § 58-835.1 was amended to clarify an existing provision applicable only to localities authorized to prorate personal property taxes on certain tangible personal property. It assures that vehicle owners pay a prorated personal property tax even though the previous owner has paid a tax for the applicable period on the same vehicle in another locality. (Chapter 36, House Bill No. 754).
Authority for Proration: § 58-835.1 was amended to extend the authority to Albemarle, James City, and Loudoun Counties and the City of Falls Church to adopt ordinances for the proration of taxes on tangible personal property. (Chapter 273, House Bill No. 26 and Chapter 270, Senate Bill No. 298).
Cable Television Property: § 58-405 is amended, changing the definition of intangible personal property for purposes of taxation to include all tangible personal property used in a cable television business except machinery and tools, motor vehicles, delivery equipment, trunk and feeder cables, studio equipment, tuners, converters, antennae and office furniture and equipment. Inventory of materials and supplies, as well as other items of personal property not included in the exceptions above are subject to the state tax on intangible personal property. (Chapter 552, House Bill No. 353).
Computer Hardware of Data Processing Businesses: § 58-829.9 was added to establish a separate classification for tangible personal property consisting of computer hardware of businesses that provide data processing services. Any local governing body may set a tax rate on this property separate from the rate on other tangible personal property, so long as the tax rate and the assessment ratio do not exceed that applicable to other tangible personal property not separately classified. The Act further requires that such computer hardware be valued by means of a percentage of original cost. (Chapter 144, House Bill No. 687).
Merchants' Capital Definition: § 58-833 is amended and § 53-833.1 is repealed in order to exempt by general law the excess of bills and accounts receivable over bills and accounts payable from the merchants' capital tax base. (Chapter 544, Senate Bill No. 24).
Delinquent Real Estate: Notice to Owner: § 58-1117.1 is amended to require that notice of intent to sell real estate for delinquent taxes be mailed to the property owner at his last known address, and to the property address if different, at least thirty days prior to instituting action to sell. (Chapter 379 House Bill No. 858).
Delinquent Real Estate: Collection Costs: §§ 58-1117.1 and 58-1117.10 are amended to provide that when the owner of delinquent real estate redeems the property prior to the judicial sale, he must not only pay the tax due, but also all other collection costs incurred by the locality, including reasonable attorney's fees set by the court. (Chapter 345, House Bill No. 648).
Delinquent Real Estate: Improper Sale: § 58-1117.7 is amended to provide for the full reimbursement of the purchase price paid for land improperly placed on the delinquent land books. The governing body is required to reimburse the court or other appropriate party for costs and fees allowed out of such payment. (Chapter 255, House Bill No. 463).
Virginia Port Authority Lessees: § 53-758.1 is amended to require lessees of Virginia Port Authority real estate (other than public service corporations or nonstock nonprofit corporations) to pay real estate taxes on their leasehold interests. The operating arm of the Virginia Port Authority is exempt from this tax as it is a nonstock, nonprofit corporation. Public service corporations and their subsidiaries are also exempt when the use of the property promotes the Virginia Port Authority. (Chapter 549, House Bill No. 32).
Assessment of Apartment Buildings: § 58-760 is amended to clarify what sales may be considered by real estate assessors in the assessment of apartment buildings by the use of the market approach to value. The sale may be used when three months have passed since the recordation of the sale, during which time no overt action which is a prerequisite to conversion to cooperative or condominium ownership by the buyer has taken place. This places the burden on the taxpayer to prove that sales are for the purpose of conversion if no overt action to convert has occurred within three months of the sale. (Chapter 556, House Bill No. 572).
Real Estate Assessment: §§ 58-763, 58-790, 58-792.02, 58-795.2, 58-812 and 58-817.1 are amended, affecting real estate assessments in the following ways: (1) Specifies that routine maintenance shall not be considered improvements; (2) requires assessing officers to make a physical examination of real estate upon the request of the taxpayer, and (3) provides the results of the Department's assessment/sales ratio study be considered prima facie proof of noncompliance with the 100 percent assessment mandate. The procedural requirements of this Act are currently followed by most assessors in Virginia at this time. (Chapter 161, Senate Bill No. 271).
Real Estate Assessment and Appeals: Effective January 1, 1984, a number of sections of Title 58 are amended, added, or repealed, affecting the assessment and taxation of real estate and the appeals process in the following ways:
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- 1. Requires the State Tax Commissioner to annually make available to every county and city and to appropriate towns a general reassessment procedures manual.
2 Requires each supervisor, assessor and appraiser conducting annual or general reassessments to have the qualifications prescribed by the Department of Taxation for the particular position held by the individual.
3. Provides for the board of assessors to be appointed by the governing body rather than the circuit court.
4. Requires that prospective members of boards of assessors be trained by the Department of Taxation to be eligible for appointment. This training is at the discretion of the Department.
- 1. Requires the State Tax Commissioner to annually make available to every county and city and to appropriate towns a general reassessment procedures manual.
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- 5. Mandates that boards of equalization be appointed by the circuit court in the year following an annual, biennial or general reassessment.
6. Limits the terms of boards of equalization to six months following the effective date of the assessment.
7. Makes members of the board of assessors ineligible for appointment to the board of equalization.
8. Includes mineral lands under the jurisdiction of boards of equalization.
9. Eliminates the authority to convene an equalization board at any time other than the year following an annual, biennial or general reassessment.
10. Eliminates the special equalization board for use-value assessments. (Chapter 304, Senate Bill No. 274)
- 5. Mandates that boards of equalization be appointed by the circuit court in the year following an annual, biennial or general reassessment.
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