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2007 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-3506 and 58.1-3916 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-3506. Other classifications of tangible personal property for taxation.
A. The items of property set forth below are each declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of tangible personal property provided in this chapter:
1. a. Boats or watercraft weighing five tons or more, not used solely for business purposes;
b. Boats or watercraft weighing less than five tons, not used solely for business purposes;
2. Aircraft having a maximum passenger seating capacity of no more than 50 that are owned and operated by scheduled air carriers operating under certificates of public convenience and necessity issued by the State Corporation Commission or the Civil Aeronautics Board;
3. Aircraft having a registered empty gross weight equal to or greater than 20,000 pounds that are not owned or operated by scheduled air carriers recognized under federal law, but not including any aircraft described in subdivision 4;
4. Aircraft that are (i) considered Warbirds, manufactured and intended for military use, excluding those manufactured after 1954, and (ii) used only for (a) exhibit or display to the general public and otherwise used for educational purposes (including such flights as are necessary for testing, maintaining, or preparing such aircraft for safe operation), or (b) airshow and flight demonstrations (including such flights necessary for testing, maintaining, or preparing such aircraft for safe operation), shall constitute a new class of property. Such class of property shall not include any aircraft used for commercial purposes, including transportation and other services for a fee;
4 5. All other aircraft not included in
subdivisions A 2 or, A 3, or A 4 and flight simulators;
5 6. Antique motor vehicles as defined in §
46.2-100 which may be used for general transportation purposes as provided in
subsection C of § 46.2-730;
6 7. Tangible personal property used in a
research and development business;
7 8. Heavy construction machinery not used for
business purposes, including but not limited to land movers, bulldozers,
front-end loaders, graders, packers, power shovels, cranes, pile drivers,
forest harvesting and silvicultural activity equipment and ditch and other
types of diggers;
8 9. Generating equipment purchased after
December 31, 1974, for the purpose of changing the energy source of a
manufacturing plant from oil or natural gas to coal, wood, wood bark, wood
residue, or any other alternative energy source for use in manufacturing and
any cogeneration equipment purchased to achieve more efficient use of any
energy source. Such generating equipment and cogeneration equipment shall
include, without limitation, such equipment purchased by firms engaged in the
business of generating electricity or steam, or both;
9 10. Vehicles without motive power, used or
designed to be used as manufactured homes as defined in § 36-85.3;
10 11. Computer hardware used by businesses
primarily engaged in providing data processing services to other nonrelated or
nonaffiliated businesses;
11 12. Privately owned pleasure boats and
watercraft, 18 feet and over, used for recreational purposes only;
12 13. Privately owned vans with a seating
capacity of not less than seven nor more than 15 persons, including the driver,
used exclusively pursuant to a ridesharing arrangement as defined in §
46.2-1400;
13 14. Motor vehicles specially equipped to
provide transportation for physically handicapped individuals;
14 15. Motor vehicles (i) owned by members of a
volunteer rescue squad or volunteer fire department or (ii) leased by members
of a volunteer rescue squad or volunteer fire department if the member is obligated
by the terms of the lease to pay tangible personal property tax on the motor
vehicle. One motor vehicle that is owned by each volunteer rescue squad member
or volunteer fire department member, or leased by each volunteer rescue squad
member or volunteer fire department member if the member is obligated by the
terms of the lease to pay tangible personal property tax on the motor vehicle,
may be specially classified under this section, provided the volunteer rescue
squad member or volunteer fire department member regularly responds to
emergency calls. The volunteer shall furnish the commissioner of revenue, or
other assessing officer, with a certification by the chief or head of the
volunteer organization, that the volunteer is a member of the volunteer rescue
squad or fire department who regularly responds to calls or regularly performs
other duties for the rescue squad or fire department, and the motor vehicle
owned or leased by the volunteer rescue squad member or volunteer fire
department member is identified. The certification shall be submitted by
January 31 of each year to the commissioner of revenue or other assessing
officer; however, the commissioner of revenue or other assessing officer shall
be authorized, in his discretion, and for good cause shown and without fault on
the part of the member, to accept a certification after the January 31
deadline. In any county that prorates the assessment of tangible personal
property pursuant to § 58.1-3516, a replacement vehicle may be certified and
classified pursuant to this subsection when the vehicle certified as of the
immediately prior January date is transferred during the tax year;
15 16. Motor vehicles (i) owned by auxiliary
members of a volunteer rescue squad or volunteer fire department or (ii) leased
by auxiliary members of a volunteer rescue squad or volunteer fire department
if the member is obligated by the terms of the lease to pay tangible personal
property tax on the motor vehicle. One motor vehicle that is regularly used by
each auxiliary volunteer fire department or rescue squad member may be
specially classified under this section. The auxiliary member shall furnish the
commissioner of revenue, or other assessing officer, with a certification by
the chief or head of the volunteer organization, that the volunteer is an
auxiliary member of the volunteer rescue squad or fire department who regularly
performs duties for the rescue squad or fire department, and the motor vehicle
is identified as regularly used for such purpose; however, if a volunteer
rescue squad or fire department member and an auxiliary member are members of
the same household, that household shall be allowed no more than two special
classifications under this subdivision or subdivision 14 15 of
this section. The certification shall be submitted by January 31 of each year
to the commissioner of revenue or other assessing officer; however, the
commissioner of revenue or other assessing officer shall be authorized, in his
discretion, and for good cause shown and without fault on the part of the
member, to accept a certification after the January 31 deadline;
16 17. Motor vehicles owned by a nonprofit
organization and used to deliver meals to homebound persons or provide
transportation to senior or handicapped citizens in the community to carry out
the purposes of the nonprofit organization;
17 18. Privately owned camping trailers as
defined in § 46.2-100, and privately owned travel trailers as defined in §
46.2-1900, which are used for recreational purposes only, and privately owned
trailers as defined in § 46.2-100 which are designed and used for the
transportation of horses except those trailers described in subdivision A 11 of
§ 58.1-3505;
18 19. One motor vehicle owned and regularly
used by a veteran who has either lost, or lost the use of, one or both legs, or
an arm or a hand, or who is blind or who is permanently and totally disabled as
certified by the Department of Veterans Services. In order to qualify, the
veteran shall provide a written statement to the commissioner of revenue or
other assessing officer from the Department of Veterans Services that the
veteran has been so designated or classified by the Department of Veterans
Services as to meet the requirements of this section, and that his disability
is service-connected. For purposes of this section, a person is blind if he
meets the provisions of § 46.2-739;
19 20. Motor vehicles (i) owned by persons who
have been appointed to serve as auxiliary police officers pursuant to Article 3
(§ 15.2-1731 et seq.) of Chapter 17 of Title 15.2 or (ii) leased by persons who
have been so appointed to serve as auxiliary police officers if the person is
obligated by the terms of the lease to pay tangible personal property tax on
the motor vehicle. One motor vehicle that is regularly used by each auxiliary
police officer to respond to auxiliary police duties may be specially
classified under this section. In order to qualify for such classification, any
auxiliary police officer who applies for such classification shall identify the
vehicle for which this classification is sought, and shall furnish the
commissioner of revenue or other assessing officer with a certification from
the governing body that has appointed such auxiliary police officer or from the
official who has appointed such auxiliary officers. That certification shall
state that the applicant is an auxiliary police officer who regularly uses a
motor vehicle to respond to auxiliary police duties, and it shall state that
the vehicle for which the classification is sought is the vehicle that is
regularly used for that purpose. The certification shall be submitted by
January 31 of each year to the commissioner of revenue or other assessing
officer; however, the commissioner of revenue or other assessing officer shall
be authorized, in his discretion, and for good cause shown and without fault on
the part of the member, to accept a certification after the January 31
deadline;
20 21. Until the first to occur of June 30,
2009, or the date that a special improvements tax is no longer levied under §
15.2-4607 on property within a Multicounty Transportation Improvement District
created pursuant to Chapter 46 (§ 15.2-4600 et seq.) of Title 15.2, tangible
personal property that is used in manufacturing, testing, or operating satellites
within a Multicounty Transportation Improvement District, provided that such
business personal property is put into service within the District on or after
July 1, 1999;
21 22. Motor vehicles which use clean special
fuels as defined in § 46.2-749.3;
22 23. Wild or exotic animals kept for public
exhibition in an indoor or outdoor facility that is properly licensed by the
federal government, the Commonwealth, or both, and that is properly zoned for
such use. "Wild animals" means any animals that are found in the
wild, or in a wild state, within the boundaries of the United States, its territories or possessions. "Exotic animals" means any animals
that are found in the wild, or in a wild state, and are native to a foreign
country;
23 24. Furniture, office, and maintenance
equipment, exclusive of motor vehicles, that are owned and used by an
organization whose real property is assessed in accordance with § 58.1-3284.1
and that is used by that organization for the purpose of maintaining or using
the open or common space within a residential development;
24 25. Motor vehicles, trailers, and
semitrailers with a gross vehicle weight of 10,000 pounds or more used to
transport property for hire by a motor carrier engaged in interstate commerce;
25 26. All tangible personal property employed
in a trade or business other than that described in subdivisions A 1 through A
18, except for subdivision A 17, of § 58.1-3503;
26 27. Programmable computer equipment and
peripherals employed in a trade or business;
27 28. Privately owned pleasure boats and
watercraft, motorized and under 18 feet, used for recreational purposes only;
28 29. Privately owned pleasure boats and
watercraft, nonmotorized and under 18 feet, used for recreational purposes
only;
29 30. Privately owned motor homes as defined in
§ 46.2-100 that are used for recreational purposes only;
30 31. Tangible personal property used in the
provision of Internet services. For purposes of this subdivision,
"Internet service" means a service, including an Internet Web-hosting
service, that enables users to access content, information, electronic mail,
and the Internet as part of a package of services sold to customers;
31 32. Motor vehicles (i) owned by persons who
serve as auxiliary, reserve, or special deputy sheriffs or (ii) leased by
persons who serve as auxiliary, reserve, or special deputy sheriffs if the
person is obligated by the terms of the lease to pay tangible personal property
tax on the motor vehicle. For purposes of this subdivision, the term "auxiliary
deputy sheriff" means auxiliary, reserve, or special deputy sheriff. One
motor vehicle that is regularly used by each auxiliary deputy sheriff to
respond to auxiliary deputy sheriff duties may be specially classified under
this section. In order to qualify for such classification, any auxiliary deputy
sheriff who applies for such classification shall identify the vehicle for
which this classification is sought, and shall furnish the commissioner of
revenue or other assessing officer with a certification from the governing body
that has appointed such auxiliary deputy sheriff or from the official who has
appointed such auxiliary deputy sheriff. That certification shall state that
the applicant is an auxiliary deputy sheriff who regularly uses a motor vehicle
to respond to such auxiliary duties, and it shall state that the vehicle for
which the classification is sought is the vehicle that is regularly used for
that purpose. The certification shall be submitted by January 31 of each year
to the commissioner of revenue or other assessing officer; however, the
commissioner of revenue or other assessing officer shall be authorized, in his
discretion, and for good cause shown and without fault on the part of the
member, to accept a certification after the January 31 deadline;
32 33. Forest harvesting and silvicultural
activity equipment;
33 34. Equipment used primarily for research,
development, production, or provision of biotechnology for the purpose of
developing or providing products or processes for specific commercial or public
purposes, including, but not limited to, medical, pharmaceutical, nutritional,
and other health-related purposes; agricultural purposes; or environmental
purposes but not for human cloning purposes as defined in § 32.1-162.21 or for products
or purposes related to human embryo stem cells. For purposes of this section,
biotechnology equipment means equipment directly used in activities associated
with the science of living things;
34 35. Boats or watercraft weighing less than
five tons, used for business purposes only; and
35 36. Boats or watercraft weighing five tons or
more, used for business purposes only.
B. The governing body of any county, city or town may levy a
tax on the property enumerated in subsection A at different rates from the tax
levied on other tangible personal property. The rates of tax and the rates of
assessment shall (i) for purposes of subdivisions 1, 2, 3, 4, 5, 7 6,
8, 10 through 19 11 through 20, 21 through 23 22
through 24, and 25 through 35 26 through 36 of subsection A,
not exceed that applicable to the general class of tangible personal property,
(ii) for purposes of subdivisions A 6, A 8, A 20, and A 24 A 7, A 9,
A 21, and A 25, not exceed that applicable to machinery and tools, and
(iii) for purposes of subdivision A 9 A 10, equal that applicable
to real property.
C. Notwithstanding any other provision of this section, for any qualifying vehicle, as such term is defined in § 58.1-3523, (i) included in any separate class of property in subsection A and (ii) assessed for tangible personal property taxes by a county, city, or town receiving a payment from the Commonwealth under Chapter 35.1 of this title for providing tangible personal property tax relief, the county, city, or town may levy the tangible personal property tax on such qualifying vehicle at a rate not to exceed the rates of tax and rates of assessment required under such chapter.
§ 58.1-3916. Counties, cities and towns may provide dates for filing returns, set penalties, interest, etc.
Notwithstanding provisions contained in §§ 58.1-3518, 58.1-3900, 58.1-3913, 58.1-3915 and 58.1-3918, the governing body of any county, city, or town may provide by ordinance the time for filing local license applications and annual returns of taxable tangible personal property, machinery and tools, and merchants' capital. The governing body may also by ordinance establish due dates for the payment of local taxes; may provide that payment be made in a single installment or in two equal installments; may offer options, which may include coupon books and payroll deductions, which allow the taxpayer to determine whether to pay the tangible personal property tax through monthly, bimonthly, quarterly, or semiannual installments or in a lump sum, provided such taxes are paid in full by the final due date; may provide by ordinance penalties for failure to file such applications and returns and for nonpayment in time; may provide for payment of interest on delinquent taxes; and may provide for the recovery of reasonable attorney's or collection agency's fees actually contracted for, not to exceed 20 percent of the delinquent taxes and other charges so collected. A locality that provides for payment of interest on delinquent taxes shall provide for interest at the same rate on overpayments due to erroneously assessed taxes to be paid to the taxpayer, provided that no interest shall be required to be paid on such refund if (i) the amount of the refund is $10 or less or (ii) the refund is the result of proration pursuant to § 58.1-3516. A court that finds that an overpayment of local taxes has been made in an action brought pursuant to § 58.1-3984 shall award interest at the appropriate rate, notwithstanding the failure of the locality to conform its ordinance to the requirements of this section.
No tax assessment or tax bill shall be deemed delinquent and subject to the collection procedures prescribed herein during the pendency of any administrative appeal under § 58.1-3980, so long as the appeal is filed within 90 days of the date of the assessment, and for 30 days after the date of the final determination of the appeal, provided that nothing in this paragraph shall be construed to preclude the assessment or refund, following the final determination of such appeal, of such interest as otherwise may be provided by general law as to that portion of a tax bill that has remained unpaid or was overpaid during the pendency of such appeal and is determined in such appeal to be properly due and owing.
Interest may commence not earlier than the first day following
the day such taxes are due by ordinance to be filed, at a rate not to exceed 10
percent per year. The governing body may impose interest at a rate not to
exceed the rate of interest established pursuant to § 6621 of the Internal
Revenue Code of 1954, as amended, or 10 percent annually, whichever is greater,
for the second and subsequent years of delinquency. No penalty for failure to
pay a tax or installment shall exceed (i) 10 percent of the tax past due on
such property; (ii) in the case of delinquent tangible personal property tax
more than 30 days past due on property classified pursuant to subdivision A
14, A 15 or A 19 A 15, A 16, or A 20 of § 58.1-3506, which remains
unpaid after 10 days' written notice sent by United States mail to the taxpayer
of the intention to impose a penalty pursuant hereto, the penalty shall not
exceed an amount equal to the difference between the tax due and owing with
respect to such property and the tax that would have been due and owing if the
property in question had been classified as general tangible personal property
pursuant to § 58.1-3503; (iii) in the case of delinquent tangible personal
property tax more than 30 days past due, 25 percent of the tax past due on such
tangible personal property; (iv) in the case of delinquent remittance of excise
taxes on meals, lodging, or admissions collected from consumers, 10 percent for
the first month the taxes are past due, and five percent for each month
thereafter, up to a maximum of 25 percent of the taxes collected but not
remitted; or (v) $10, whichever is greater, provided, however, that the penalty
shall in no case exceed the amount of the tax assessable. No penalty for
failure to file a return shall be greater than 10 percent of the tax assessable
on such return or $10, whichever is greater; provided, however, that the
penalty shall in no case exceed the amount of the tax assessable. The
assessment of such penalty shall not be deemed a defense to any criminal
prosecution for failing to make return of taxable property as may be required
by law or ordinance. Penalty for failure to file an application or return may
be assessed on the day after such return or application is due; penalty for
failure to pay any tax may be assessed on the day after the first installment
is due. Any such penalty when so assessed shall become a part of the tax.
No penalty for failure to pay any tax shall be imposed for any assessment made later than two weeks prior to the day on which the taxes are due, if such assessment is made thereafter through the fault of a local official, and if such assessment is paid within two weeks after the notice thereof is mailed.
In the event a transfer of real property ownership occurs after January 1 of a tax year and a real estate tax bill has been mailed pursuant to §§ 58.1-3281 and 58.1-3912, the treasurer or other appropriate local official designated by ordinance of the local governing body in jurisdictions not having a treasurer, upon ascertaining that a property transfer has occurred, may invalidate a bill sent to the prior owner and reissue the bill to the new owner as permitted by § 58.1-3912, and no penalty for failure to pay any tax for any such assessment shall be imposed if the tax is paid within two weeks after the notice thereof is mailed.
Penalty and interest for failure to file a return or to pay a tax shall not be imposed if such failure was not the fault of the taxpayer, or was the fault of the commissioner of revenue or the treasurer, as the case may be. The failure to file a return or to pay a tax due to the death of the taxpayer or a medically determinable physical or mental impairment on the date the return or tax is due shall be presumptive proof of lack of fault on the taxpayer's part, provided the return is filed or the taxes are paid within 30 days of the due date; however, if there is a committee, legal guardian, conservator or other fiduciary handling the individual's affairs, such return shall be filed or such taxes paid within 120 days after the fiduciary qualifies or begins to act on behalf of the taxpayer. Interest on such taxes shall accrue until paid in full. Any such fiduciary shall, on behalf of the taxpayer, by the due date, file any required returns and pay any taxes that come due after the 120-day period. The treasurer shall make determinations of fault relating exclusively to failure to pay a tax, and the commissioner of the revenue shall make determinations of fault relating exclusively to failure to file a return. In jurisdictions not having a treasurer or commissioner of the revenue, the governing body may delegate to the appropriate local tax officials the responsibility to make the determination of fault.
The governing body may further provide by resolution for reasonable extensions of time, not to exceed 90 days, for the payment of real estate and personal property taxes and for filing returns on tangible personal property, machinery and tools, and merchants' capital, and the business, professional, and occupational license tax, whenever good cause exists. The official granting such extension shall keep a record of every such extension. If any taxpayer who has been granted an extension of time for filing his return fails to file his return within the extended time, his case shall be treated the same as if no extension had been granted.
This section shall be the sole authority for local ordinances setting due dates of local taxes and penalty and interest thereon, and shall supersede the provisions of any charter or special act.