Virginia Law

Article 2. Collections and Refunds.

Any state officer charged with the duty of collecting taxes may apply in writing to any person indebted to or having in his hands estate of a taxpayer for payment of any taxes more than thirty days delinquent, out of such debt or estate. Payment by such person of such taxes, penalties and interest, either in whole or in part, shall entitle him to a credit against such debt or estate. The taxes, penalties and interest shall constitute a lien on the debt or estate due the taxpayer from the time the application is received. For each application served, the person applied to shall be entitled to a fee of twenty dollars which shall constitute a charge or credit against the debt to or estate of the taxpayer.

The collecting officer shall send a copy of the application to the taxpayer, with a notice informing him of the remedies provided in this chapter.

If the person applied to does not pay so much as ought to be recovered out of such debt or estate, the collecting officer shall procure a summons directing such person to appear before the appropriate court, where the proper payment may be enforced. Any person so summoned shall have the same rights of removal and appeal as are applicable to disputes among individuals.

Code 1950, § 58-1010; 1960, c. 573; 1983, c. 481; 1984, c. 675.

A. If any taxes or fees, including penalties and interest, assessed by the State Corporation Commission in pursuance of law against any person, are not paid within thirty days after the same become due, the State Corporation Commission may file a memorandum of lien in the circuit court clerk's office of the county or city in which the taxpayer's place of business is located, or in which the taxpayer resides. If the taxpayer has no place of business or residence within the Commonwealth, such memorandum may be filed in the Circuit Court of the City of Richmond. A copy of such memorandum may also be filed in the clerk's office of all counties and cities in which the taxpayer owns real estate. Such memorandum shall be recorded in the judgment docket book and shall have the effect of a judgment in favor of the Commonwealth, to be enforced as provided in Article 19 (§ 8.01-196 et seq.) of Chapter 3 of Title 8.01, except that a writ of fieri facias may issue at any time after the memorandum is filed. The lien on real estate shall become effective at the time the memorandum is filed in the jurisdiction in which the real estate is located.

B. Recordation of a memorandum of lien hereunder shall not affect the right to a refund or exoneration under this subtitle, nor shall an application for correction of an erroneous assessment affect the power of the State Corporation Commission to collect the tax, except as specifically provided in this title.

Code 1950, §§ 58-41 to 58-43; 1971, Ex. Sess., c. 155; 1984, c. 675; 1985, c. 528.

The payment of any state taxes and the filing of returns may, in addition to the remedies provided in this chapter be enforced by action at law, suit in equity or by attachment in the same manner, to the same extent and with the same rights of appeal as now exist or may hereafter be provided by law for the enforcement of demands between individuals. The venue for any such proceeding under this section shall be as specified in subdivision 13 a of § 8.01-261. Such proceedings shall be instituted and conducted in the name of the Commonwealth of Virginia.

Code 1950, §§ 58-44, 58-1014, 58-1016; 1954, c. 333; 1977, c. 624; 1981, c. 421; 1984, c. 675.

In any proceeding under § 58.1-2022 the court shall have the power to determine the proper taxes, and to enter an order requiring the taxpayer to file all returns and pay all taxes, penalties and interest with which upon a correct assessment he is chargeable for any year or years not barred by the statute of limitations at the time the proceedings were instituted. If any taxes of which collection is sought have been erroneously charged, the court may order exoneration thereof. Payment of any judgment or decree shall be enforced against the taxpayer in the same manner that it could be enforced in a proceeding between individuals.

Code 1950, §§ 58-44, 58-1017; 1984, c. 675.

When after the rendition of such a judgment or decree against a defendant it seems to the attorney having charge thereof that there may not be found within the Commonwealth sufficient property of the defendant out of which the same may be enforced, but that the same could be enforced in some other jurisdiction, he shall, with the concurrence of the Attorney General, institute in such foreign jurisdiction appropriate proceedings to enforce therein the payment of such judgment.

Code 1950, § 58-1018; 1984, c. 675.

If any tax-assessing officer or body authorized by law to assess taxes on any subject of taxation pursuant to this subtitle, ascertains that any property, or any other subject of state taxation which such tax-assessing officer or body would have been authorized to assess during any current tax year has not been assessed for any tax year of the three years last past, or that the same has been assessed at less than the law required for any one or more of such years, or that the taxes thereon, for any cause, have not been realized, such tax-assessing officer or body shall list and assess the same with taxes at the rate prescribed for that year, adding thereto a penalty of ten percent, unless otherwise specifically provided by law, and interest at the rate established pursuant to § 58.1-15 which shall be computed upon the taxes and penalty from December 15 of the year in which such taxes should have been paid to the date of the assessment. If the assessment is not paid within thirty days after its date, interest at the rate established in § 58.1-15 shall accrue thereon from the date of such assessment until payment.

1985, c. 221.

Reserved.

Any person or corporation feeling aggrieved by reason of any registration fee, franchise tax, charter tax, entrance fee, license tax, fee or charge assessed or imposed by or under authority of the State Corporation Commission against and collected from any corporation, domestic or foreign, or any fee paid under the provisions of Chapter 5 (§ 13.1-501 et seq.) of Title 13.1, may, unless and except as otherwise specifically provided, within one year from the date of the payment of any such tax, fee or charge, apply to the State Corporation Commission for a correction of such assessment or charge and for a refund, in whole or in part, of the tax, fee or charge so assessed or imposed and paid. No payment shall be recovered after a formal adjudication in a proceeding in which the right of appeal existed and was not taken. Such application shall be by written petition, in duplicate and verified by affidavit. Such application shall be filed with the Commission and shall set forth the names and addresses of every party in interest.

Code 1950, § 58-1122; 1976, c. 563; 1984, c. 675.

As soon as practicable after the filing of the petition, the State Corporation Commission shall set a date for the hearing. At least fifteen days' notice of such hearing shall be given by the Commission to the petitioner and to every party in interest, but such notice to the petitioner shall be sufficient in the form of an attested copy of the order fixing such hearing sent by ordinary mail, to the address furnished by the petitioner, or to the attorney of the petitioner, if any, provided it is certified in the record, by the clerk of the Commission, that such notice was deposited in the mail at least fifteen days prior to the date set for the hearing. Otherwise such notice may be served by an officer or may be served by registered mail, return receipt requested, and, except in the case of the petitioner shall be accompanied by a copy of the petition. The petitioner shall furnish the requisite number of copies of the petition for the giving of such notices herein required.

Code 1950, § 58-1123; 1978, c. 457; 1984, c. 675.

In determining the issue the State Corporation Commission shall sit in its capacity as a court and shall consider all matters of law and fact involved. If of the opinion that the petitioner is entitled to relief, in whole or in part, the Commission shall certify to the Comptroller its findings and judgment and the Comptroller shall draw his warrant on the State Treasurer in favor of the person or corporation for the erroneous or excessive amount so certified to have been paid.

Code 1950, § 58-1124; 1984, c. 675.

Any person in interest, including the Commonwealth, who considers himself aggrieved by any action of the State Corporation Commission under § 58.1-2032, irrespective of the amount involved, may appeal such action to the Supreme Court.

Code 1950, § 58-1126; 1984, c. 675.

If any assessment is made by the State Corporation Commission of the real or personal property or of the franchises of any corporation in any case for which a remedy for the redress and correction of any such assessment is not otherwise expressly provided by law, any such corporation or the Commonwealth or any county or city, may, within sixty days after receiving a certified copy of the assessment of such taxes by the State Corporation Commission, apply to the Supreme Court in the manner and upon the terms prescribed by such court.

Code 1950, § 58-1129; 1984, c. 675.

Without formal hearing or notice to the Attorney General the State Corporation Commission shall have the authority of its own motion to correct assessments; correct the names, addresses and gross receipts of telecommunications companies certified to the Department of Taxation pursuant to § 58.1-400.1 for eighteen months from the date of the certification; or certify to the Comptroller directing refund in any case in which there has been an erroneous assessment or erroneous payment involving or resulting from mere clerical error on the part of the Commission made in copying or typing or in arithmetic. No refund shall be ordered under the authority conferred by this section more than two years after the date of the erroneous payment.

Code 1950, § 58-1127; 1972, c. 776; 1984, c. 675; 2000, c. 368.