Sec. 36-149.2. Implementation of the personal property tax relief act of 1998.
(Note: Edited text effective 1-1-06)
(a) The purpose of this ordinance is to provide for the implementation of the changes to the personal property tax relief act affected by legislation adopted during the 2004 special session I and the 2005 regular session of the general assembly of Virginia.
(1) Terms used in this ordinance that have defined meanings set forth in personal property tax relief act shall have the same meanings as set forth in Virginia code section 58.1-3523, as amended.
(2) To the extent that the provisions of this ordinance conflict with any prior ordinance or provision of the Lynchburg city code, this ordinance shall control.
(b) Method of computing and reflecting tax relief.
(1) For tax years commencing in 2006, the City of Lynchburg adopts the provisions of item 503.E of the 2005 appropriations act, providing for the computation of tax relief as a specific dollar amount to be offset against the total taxes that would otherwise be due but for personal property tax relief and the reporting of such specific dollar relief on the tax bill.
(2) The city council shall, by resolution, set the percentage of tax relief at such a level that it is anticipated fully to exhaust personal property tax relief act relief funds provided to the City of Lynchburg by the Commonwealth.
(3) Personal property tax bills shall set forth on their face the specific dollar amount of relief credited with respect to each qualifying vehicle, together with an explanation of the general manner in which relief is allocated.
(c) Allocation of personal property tax relief shall be provided in accordance with the general provisions of this section, as implemented by the specific provisions of the City of Lynchburg annual budget relating to personal property tax relief act relief.
(1) Relief shall be allocated in such a manner as to eliminate personal property taxation of each qualifying vehicle with an assessed value of one thousand dollars ($1,000.00) or less.
(2) Relief with respect to qualifying vehicles with assessed values of more than one thousand dollars ($1,000.00) shall be provided at a percentage, annually fixed and applied to the first twenty thousand dollars ($20,000.00) in value of each such qualifying vehicle that is estimated to fully use all available state personal property tax relief funding. The percentage shall be established annually.
(d) Pursuant to authority conferred in item 503.D of the 2005 appropriations act, unless the assessment is determined to be of no fault of the taxpayer, the City of Lynchburg city collector is authorized to issue a supplemental personal property tax bill, in the amount of one hundred percent (100%) - of tax due without regard to any former entitlement to state personal property tax relief, plus applicable penalties and interest, to any taxpayer whose taxes with respect to a qualifying vehicle for tax year 2005 or any prior tax year remain unpaid on September 1, 2006, or such date as state funds for reimbursement of the state share of such bill have become unavailable, whichever earlier occurs.
(1) If the failure to file or pay was not the fault of the taxpayer, the supplemental personal property tax bill shall not be imposed, or if imposed shall be abated by the official who imposed them. In order to demonstrate lack of fault, the taxpayer must show that he acted responsibly and that the failure was due to events beyond his control.
a. Acted responsibly means that: (i) the taxpayer exercised the level of reasonable care that a prudent person would exercise under the circumstances in determining the filing/payment obligations and (ii) the taxpayer undertook significant steps to avoid or mitigate the failure.
b. Events beyond the taxpayer's control include, the unavailability of records due to fire or other casualty; the unavoidable absence (e.g., due to death or serious illness) of the person with sole responsibility with tax compliance; or the taxpayer's reasonable reliance in good faith upon erroneous written information from the commissioner of the revenue who was aware of the relevant facts relating to the taxpayer when he provided the erroneous information.
(e) Penalty and interest with respect to bills issued pursuant to this section shall be computed on the entire amount of tax owed. Interest shall be computed at the rate provided in chapter 36, article IV, section 36-164 of the code of the City of Lynchburg from the original due date of the tax. (Ord. No. O-05-150, 11-22-05, eff. 1-1-06)
Last updated date: 10/23/2006 4:15:21 PM