Opinion Number
11271970
Tax Type
Property Tax
Description
Public Service Corporation Personal Property
Topic
Basis of Tax
Computation of Tax
Local Taxes Discussion
Rate of Tax
Date Issued
11-27-1970

I have received your letter of November 17, from which I quote:
"In 1966 the personal property rate in Prince William County was $5.65 and the real estate rate was $3.60. In 1970, both rates were $7.00.

"Under Section 58-514.2 of the Code of Virginia, may the Commissioner of the Revenue in 1970 assess the personal property, other than automobiles and trucks, at the current $7.00 rate.'

Your question relates to Virginia Code § 58-514.2 which deals only with the taxation of public service corporation property. The current personal property tax rates generally apply to all tangible personal property within given classifications. However, § 58-514.2 places a ceiling on the tax rate on property (other than automobiles and trucks, which are not dealt with in this opinion) owned by public service corporations.

That ceiling is the higher of:
  • 1. The current real estate tax rate; or
    2. The 1966 personal property tax rate.
The proviso of § 58-514.2 removes, over a twenty-year period, the right of the locality to continue taxing public service corporation personal property at its 1966 rates. The proviso does not affect the right of the locality to tax all public service corporation property at its current real estate tax rate.

In my opinion, you should extend the tax on the tangible personal property, other than automobiles and trucks, of public service corporations at the current $7.00 rate.



Attorney General's Opinion

Last Updated 08/25/2014 16:42