Virginia Law

Article 7. Administrative and Judicial Review of Assessment and Tax.

Any taxpayer, the Commonwealth or any county, city or town aggrieved by any action of the Commission in the ascertainment of, or the assessment for taxation of, the value of any property of any corporation or company assessed by the Commission, or in the ascertainment of any tax upon any company or corporation of its property, at any time within three months after receiving a certified copy of such assessment of value or tax, may apply to the Commission for a review and correction of any specified item or items thereof after which date the Commission shall have no authority under this section or any other provision of law to receive any application or complaint concerning the assessment of value or tax. Such application shall be in a form prescribed by the Commission and shall set forth with reasonable certainty the item or items, of which a review and correction are sought, and the grounds of the complaint. The application shall also be verified by affidavit.

Any company or governmental entity aggrieved by any assessment for taxation of the value of any property by the Department of Taxation may apply to the Department or the Circuit Court of the City of Richmond, Division I, for correction of any such tax valuation or assessment, under Chapter 18 (§ 58.1-1800 et seq.) of this title. The Department and the court are hereby empowered to correct the valuation or assessment, and the requirement of such sections shall apply to corrections hereunder, mutatis mutandis.

Code 1950, § 58-672; 1971, Ex. Sess., c. 46; 1983, c. 570; 1984, c. 675; 1990, c. 146; 2000, c. 368; 2005, c. 21.

A. Subject to the limitations provided herein, any county, city, or town or public service corporation or other entity whose property is assessed by the State Corporation Commission or the Department of Taxation aggrieved by the Department of Taxation's ascertainment of the applicable local assessment ratio prevailing for such taxing district as specified in subsection A of § 58.1-2604, may petition to the Circuit Court for the City of Richmond for correction of such ratio. Such petition must be filed within three months after the Department of Taxation gives notice of the applicable prevailing local assessment ratios to all counties, cities, towns, and to the Commission pursuant to subsection A of § 58.1-2604. This section shall apply only to counties, cities and towns in which a public service corporation's property represents twenty-five percent or more of the total assessed value of real estate in such county, city or town.

B. Any proceeding maintained under this section shall name the Department of Taxation and the applicable public service corporation, other entity whose property is assessed by the State Corporation Commission or the Department of Taxation, and the county, city or town which is the taxing district, as respondents. The action shall be conducted in accordance with the Rules of the Supreme Court of Virginia applicable to suits in equity, and no trial by jury will be permitted.

C. If the Circuit Court finds the local assessment ratio as ascertained by the Department of Taxation to be erroneous, it shall determine the correct local assessment ratio and shall order the Department of Taxation to adopt the corrected ratio as its prevailing local assessment ratio and provide such corrected ratio to the Commission in accordance with subsection A of § 58.1-2604.

D. If a suit is commenced by any party under this section, the period of time for any county, city, town or public service corporation or other entity whose property is assessed by the State Corporation Commission in which to file a petition with the Commission, pursuant to § 58.1-2670, challenging the ascertainment of, or the assessment for taxation of, the value of any property of any public service corporation assessed by the Commission, shall commence to run on the date of the final order entered by the Circuit Court or, in the event of an appeal, on the date of the final order of the Supreme Court of Virginia.

1993, c. 528.

Upon the filing of any such application, the Commission shall fix a time and place at which it will hear such testimony with reference thereto as any of the parties may desire to introduce and the applicant shall cause a copy of the application and notice of the time and place of the hearing to be served upon the company or corporation or the Commonwealth and each county, city and town whose revenue is, or may be, affected thereby, at least ten days prior to the day set for the hearing.

Code 1950, § 58-673; 1984, c. 675.

At any time within three months after a taxpayer receives the certified copy of any such assessment of value or tax, the Commission may of its own motion, after not less than ten days' notice to the taxpayer and to the Commonwealth and each county, city and town whose revenue is affected by the item or items to be reviewed and an opportunity given to such parties to introduce testimony with reference thereto, review and correct any specified item or items of such assessment of value or tax, as to which it may have cause to believe that an error may have been made.

Code 1950, § 58-674; 1984, c. 675.

If, from the evidence introduced at such hearing or its own investigations, the Commission is of opinion that the assessment or tax is excessive, it shall reduce the same or if it is insufficient, it shall increase the same. If the decision of the Commission is in favor of the taxpayer, in whole or in part, appropriate relief shall be granted, including the right to recover from the Commonwealth or local authorities, or both, as the case may be, any excess of taxes that may have been paid. The order of the Commission shall be enforced by mandamus, or other proper process, issuing from the Commission.

Code 1950, § 58-675; 1984, c. 675.

Notice of hearing before the Commission required to be served under this article upon the Commonwealth shall be served upon the officer of the Commonwealth charged with the duty of the collection of the state tax affected by the assessment of which correction is sought. It shall, however, only be necessary to serve notice upon the Commonwealth if the state revenue is affected by the assessment of which a correction is sought.

Code 1950, § 58-678; 1983, c. 570; 1984, c. 675.

Any telecommunications company or electric supplier aggrieved by any action of the Commission in the certification of gross receipts to the Department of Taxation as required by § 58.1-400.1 or § 58.1-400.3 may apply to the Commission for review and correction of any specified item or items of a certification. Such application shall be in a form prescribed by the Commission and shall be filed within 18 months of the date of the certification to the Department of Taxation after which date the Commission shall have no authority under this section or any other provision of law to receive any application or complaint concerning the certification. The Commission shall provide for notice to the Department of Taxation of any application. If, from the evidence introduced at any hearing on the application or its own investigation, the Commission finds that the certification is incorrect, it shall correct the certification to the Department of Taxation.

2000, c. 368; 2004, c. 716.

Any taxpayer, the Commonwealth or any county, city, or town aggrieved by any assessment or ascertainment of taxes by the Commission, after having proceeded before the Commission as provided in this article, may appeal from any final order or action of the Commission to the Supreme Court, as a matter of right, within the time and in the manner provided by law for appeals generally from the Commission to the Supreme Court.

Code 1950, § 58-679; 1971, Ex. Sess., c. 46; 1983, c. 570; 1984, c. 675.

If the Supreme Court determines that the assessment or tax is excessive, it shall reduce the same or if it is insufficient, it shall increase the same. Unless the taxes so assessed or ascertained were paid under protest, when due, the Court, if it disallows the claim, on the appeal of the taxpayer, shall, in upholding the assessment, give judgment against such taxpayer for the taxes so assessed and ascertained and for a sum, by way of damages, equal to interest at the rate of one percent a month upon the amount of the taxes from the time the same were payable.

If the decision is in favor of the taxpayer, in whole or in part, appropriate relief shall be granted, including the right to recover any excess of taxes that have been paid, with legal interest thereon and with the costs incurred by such taxpayer, from the Commonwealth or local authorities, or both, as the case may be, the judgment to be enforceable by mandamus or other proper process issuing from the Court.

If the decision be in favor of the Commonwealth or of any county, city or town, appropriate relief shall be granted and enforced by mandamus or other proper process issuing from the Court.

The Court may, when deemed proper so to do, return the case to the Commission for further proceedings, either by way of hearing or for appropriate remedy.

Code 1950, § 58-680; 1984, c. 675.