§ 26-905. Limitations, extensions, appeals and rulings.  


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  • The enforcement of this article, including limitations with respect thereto, the correction of any assessment under this article and any appeal by this jurisdiction of a correction made by its assessing official or by any person assessed with taxes under this article and aggrieved by such assessment shall be pursuant to Code of Virginia, § 58.1-3900 et seq.; provided, however:

    (1)

    Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this article, both the Director of Finance and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

    (2)

    Notwithstanding Code of Virginia, § 58.1-3903, the Director of Finance shall assess the local license tax omitted because of fraud or failure to apply for a license for the current license year and the six preceding license years.

    (3)

    The period for collecting any license tax pursuant to this article shall not expire prior to the period specified in Code of Virginia, § 58.1-3940, two years after the date of assessment if the period for assessment has been extended pursuant to this subsection, two years after the final determination of an appeal for which collection has been stayed pursuant to Subsections (5) and (7) of this section, or two years after the final decision in a court application pursuant to Code of Virginia, § 58.1-3984 or similar law for which collection has been stayed, whichever is later.

    (4)

    Any person assessed with a licensing tax under this article as the result of an appealable event may apply to the assessing official for a correction of the assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the appealable event, whichever is later. The application must be filed in good faith and contain, at a minimum, the following information:

    a.

    Sufficient identification of the taxpayer;

    b.

    The audit period;

    c.

    The remedy sought;

    d.

    Each alleged error in the assessment;

    e.

    The grounds upon which the taxpayer relies; and

    f.

    Any other facts relevant to the taxpayer's contention.

    The Assessor may hold a conference with the taxpayer if requested by the taxpayer or require submission of additional information and documents, further audit, or other evidence deemed necessary for a proper and equitable determination of the application. The assessment shall be deemed prima facie correct. The Assessor shall undertake a full review of the taxpayer's claims and issue a determination to the taxpayer setting forth the Assessor's position. Every assessment pursuant to an audit shall be accompanied by a written explanation of the taxpayer's right to seek correction and the specific procedure to be followed in the City.

    (5)

    If a timely and complete application is made, collection activity shall be suspended until 30 days after the final determination is issued by the Assessor, unless the Assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with Section 26-891(b), but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" includes a finding that the application is frivolous, or that a taxpayer desires to:

    a.

    Depart quickly from the locality;

    b.

    Remove the taxpayer's property therefrom;

    c.

    Conceal himself or herself or the taxpayer's property therein; or

    d.

    Do any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the tax for the period in question.

    (6)

    Any person assessed with a license tax as a result of a determination of an application for correction pursuant to Subsection (4) of this section that is adverse to the position of the taxpayer in such application may apply within 90 days of the determination by the assessing official to the Tax Commissioner for a correction of such assessment. The Tax Commissioner shall issue a determination to the taxpayer within 90 days of receipt of the taxpayer's application, unless the taxpayer and the assessing official are notified that a longer period will be required. The application shall be treated as an application pursuant to Code of Virginia, § 58.1-1821, and the Tax Commissioner may issue an order correcting such assessment pursuant to Code of Virginia, § 58.1-1822. Following such an order, either the taxpayer or the assessing official may apply to the appropriate circuit court pursuant to Code of Virginia, § 58.1-3984. However, the burden shall be on the party making the application to show that the ruling of the Tax Commissioner is erroneous. Neither the Tax Commissioner nor the Department of Taxation shall be made a party to an application to correct an assessment merely because the Tax Commissioner has ruled on it.

    (7)

    On receipt of a notice of intent to file an appeal to the Tax Commissioner under Subsection (6) of this section, the assessing official shall further suspend collection activity until a final determination is issued by the Tax Commissioner, unless the Assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with Subsection (5) of this section, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" shall have the same meaning as set forth in Subsection (5) of this section.

    (8)

    Any taxpayer may request an advance written ruling regarding the application of the tax to a specific situation from the Director of Finance. Any person requesting such a ruling must provide all the relevant facts for the situation and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. Such advance rulings must, in order to be binding on the City, be signed by the Director of Finance. Any misrepresentation or change in the applicable law or the factual situation as presented in the ruling request shall invalidate any such ruling issued. A written ruling may be revoked or amended prospectively if there is a change in the law or the Assessor notifies the taxpayer of a change in the policy or interpretation upon which the ruling was based. However, any person who acts on a written ruling which later becomes invalid shall be deemed to have acted in good faith during the period in which such ruling was in effect.

    (Code 1993, § 27-349; Code 2004, § 98-668)

(Code 1993, § 27-349; Code 2004, § 98-668)