Bulletin Number
VTB 92-12
Tax Type
Property Tax
Description
Collection of Property Taxes Restrained; 1992 Tax Year
Topic
Collection of Tax
Local Power to Tax
Date Issued
12-08-1992
Collection of Property Taxes Restrained
the 1992 Tax Year
On December 2, 1992, the United States District Court for the Eastern District of Virginia, the Honorable Robert R. Merhige, Jr. presiding, issued an order temporarily restraining the collection by Virginia localities of taxes arising from the assessment of real estate and tangible personal property of CSX Transportation, Inc. and Richmond, Fredericksburg and Potomac Railway Company. The referenced assessment is set forth in the 1992 Statement of Assessed Values for Local Tax Purposes for Railroads and Interstate Pipeline Transmission Companies, issued by the Department of Taxation on September 1, 1992. This temporary restraining order shall remain in effect until 5:00 p.m. December 12, 1992.
This order is conditioned upon the plaintiff's payment by December 5, 1992 to all appropriate interested Virginia taxing authorities taxes for 1992 based on the original 1989 assessments made by the Department of Taxation but using 1992 tax rates.
The Court's order indicates that in the event the defendant prevails on the merits of this action, the plaintiff railroads shall be liable for any tax payments found to be properly owing, plus interest and penalties on those amounts.
Questions regarding this tax bulletin should be directed to Keith Mawyer at: (804) 367-8020.
Tax Bulletins