Tax Type
Local Taxes
Property Tax
Description
Radio Station Equipment
Topic
Local Power to Tax
Local Taxes Discussion
Property Subject to Tax
Date Issued
12-03-1984
[Opinion - Virginia Attorney General: 1984 at 404]
REQUEST BY: Honorable Lacky G. Sempeles Commissioner of the Revenue for the City of Winchester
OPINION BY: Gerald L. Baliles, Attorney General
OPINION:
You have asked whether any radio equipment belonging to a radio station is personal property subject to local taxation.
Article X, § 4 of the Constitution of Virginia (1971), provides that tangible personal property is to be segregated and made subject to local taxation only. Article X, § 1 provides, however, that the General Assembly may define and classify taxable subjects.
Section 58-4051 of the Code of Virginia provides in (A)(2) that intangible personal property includes the capital of a trade or business and is segregated for State taxation only. The subjects of taxation classified by this section are defined as intangible personal property and include "capital which is personal property, tangible in fact, used in . . . radio or television broadcasting . . . except machinery and tools. motor vehicles and delivery equipment . . . ."
1 This section has been recodified under § 58.1-1101 of Title 58.1. The effective date of § 58.1-1101 is January 1, 1985.
If the equipment in question falls within one of the exceptions provided by statute, it would be subject to local taxation. Items such as office furniture and equipment, however, are not taxable by localities as tangible personal property but, rather, constitute the capital of a business. See 1950-1951 Report of the Attorney General at 287. Such items are classified as intangible personal property and are not subject to local taxation. See 1977-1978 Report of the Attorney General at 411.
Accordingly, certain tangible personal property used or employed by a taxpayer engaged in the business of radio broadcasting has been determined by the General Assembly to be capital. Capital is defined as intangible personal property in § 58-405, unless otherwise excepted by statute. Intangible personal property, except merchants' capital,2 is not subject to the local tangible personal property tax. I am, therefore, of the opinion that, unless it falls within the exceptions set forth in § 58-405(A)(2), radio equipment used in radio broadcasting is not subject to local taxation.
2 See §§. 58-405(A) and 58-833.
Attorney General's Opinion