Could Virginia review a local mobile property assessment when the taxpayer appealed more than a year after the county's final determination?

Subject

Local mobile property appeal was barred by the 90-day deadline

Plain-English summary

Virginia dismissed the appeal because it reached the Tax Commissioner well after the 90-day administrative deadline. The county had assessed 2003 local mobile property tax on a boat, motor, and trailer after the taxpayer moved to another state.

The county's final determination was dated August 23, 2007. The statute required an appeal to the Tax Commissioner by November 21, 2007. The taxpayer paid the assessment in October 2008 and did not file the state administrative appeal until November 2008.

Because the deadline had expired, the Department had no jurisdiction to review the merits. It did not decide whether registration records established county situs or whether the 2003 assessment was otherwise correct.

What this means for you

• A local property-tax appeal deadline can prevent any merits review.
• Paying an assessment later did not restart the 90-day period in this ruling.
• The deadline ran from the locality's final determination.
• Separate circuit-court appeal rights were not displaced by the administrative option described.

Common questions

When was the state appeal due?

November 21, 2007, 90 days after the county's August 23 determination.

When was it filed?

November 2008.

Did Virginia decide whether the property was taxable?

No. It lacked jurisdiction because the appeal was late.

Citations and references

• Va. Code § 58.1-3983.1(D).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 10-8

Original ruling text

January 13, 2010

Re: Appeal of Tangible Personal Property Tax

Taxpayer: *

Locality: *

Dear *:

This final state determination is issued upon your appeal filed on behalf of * (the "Taxpayer") with the Department of Taxation. You appeal the *** (the "County") assessment of Local Mobile Property (LMP) tax made on certain property owned by the Taxpayer. I apologize for the delay in responding to your letter.

The LMP tax is imposed and administered by local officials. Virginia Code § 58.1-3983.1 D authorizes the Department to issue determinations on taxpayer appeals of BTPP tax assessments. On appeal, a LMP tax assessment is deemed prima facie correct. That is, the local assessment will stand unless the taxpayer proves that it is incorrect.

The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's website.

FACTS

The Taxpayer was a resident of the County until he moved to * (State A) in December 2002. His residence in the County was sold in January 2003. The County issued an assessment for the 2003 tax year for property tax on a boat, motor and trailer.

The Taxpayer filed an appeal in August 2007. The County's final determination, issued on August 23, 2007, upheld the assessment. According to the County, Department of Motor Vehicle records showed that the boat trailer was registered in Virginia until June 2004. Further, the Department of Game and Inland Fisheries records indicated an active boat registration through June 2004. Based on these records, the County upheld the assessment for 2003. The Taxpayer paid the assessment in October 2008 and filed an appeal with the Tax Commissioner in November 2008.

ANALYSIS

Virginia Code § 58.1-3983.1 permits taxpayers who believe they are erroneously assessed for local mobile property taxes the option of using the administrative appeals process when seeking correction of an assessment. This option does not affect taxpayers' rights to use the traditional appeals process through the circuit court. For administrative appeals to the Tax Commissioner, Va. Code § 58.1-3983.1 D 1 provides that a taxpayer must file such appeal within 90 days of the date of the final determination of the local assessing official.

In this case, the County's final determination was issued August 23, 2007. Pursuant to Virginia Code § 58.1-3983.1, the Taxpayer was required to file an appeal to the Tax Commissioner on or before November 21, 2007. The Taxpayer did not file his appeal with the Department until November 2008, well beyond the expiration of the filing deadline.

DETERMINATION

The Taxpayer's appeal of the 2003 local mobile property tax assessment issued by the County is barred by the statute of limitations. Therefore, the Department does not have jurisdiction to consider your appeal.

If you have any questions regarding this determination, you may call * in the Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Janie E. Bowen

Tax Commissioner

AR/1-3114324561.E