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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 500. Business, Professional and Occupational License Tax Regulations
11/21/2024

23VAC10-500-820. Appeal to the circuit court; suspension of collection activity.

A. On receipt of a notice of intent to file an appeal to the circuit court of an order or final determination of the Tax Commissioner and upon payment of the amount of the tax that is not in dispute together with any penalty and interest then due with respect to such undisputed portion of the tax, the local officer responsible for collection activity must further suspend collection activity while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that (i) the taxpayer's application for judicial review is frivolous; (ii) collection would be jeopardized by delay; or (iii) suspension of collection would cause substantial economic hardship to the locality. For purposes of determining whether substantial economic hardship to the locality would arise from a suspension of collection activity, the court shall consider the cumulative effect of then-pending appeals filed within the locality by different taxpayers that allege common claims or theories of relief.

B. Upon a determination that the appeal is frivolous, that collection may be jeopardized by delay, or that suspension of collection would result in substantial economic hardship to the locality, the court may require the taxpayer to pay the amount in dispute or a portion thereof, or to provide surety for payment of the amount in dispute in a form acceptable to the court.

C. No suspension of collection activity shall be required if the appeal to the circuit court fails to identify with particularity the amount in dispute.

D. Collection activity will continue to be suspended unless an appeal to the circuit court is filed and a copy served on the local assessing officer within 30 days of filing a notice of intent to file an appeal to the circuit court.

E. Suspension of collection activity shall not be applicable to any appeal that is initiated by the direct filing of an appeal to the circuit court pursuant to § 58.1-3984 of the Code of Virginia without prior exhaustion of the right to appeal the assessment administratively to the local assessing officer and the Tax Commissioner pursuant to § 58.1-3703.1 of the Code of Virginia.

Statutory Authority

§ 58.1-3701 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 24, Issue 23, eff. October 6, 2008.

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