Tax Type
BTPP Tax
Description
Facts misstated were the Taxpayer's failure to clearly set forth the facts in its case
Topic
Records/Returns/Payments
Date Issued
08-29-2012
August 29, 2012
Re: Taxpayer: *****
Locality: *****
Business Tangible Personal Property Tax
Dear *****:
This will reply to your letter in which ***** (the "Taxpayer") requests reconsideration of the Department's final determination letter dated April 27, 2012, issued as Public Document (P.D.) 12-60 (4/27/2012). P.D. 12-60 was issued in response to the application for correction of Business Tangible Personal Property
(BTPP) Tax issued by the ***** (the "City").
Virginia Code § 58.1-3983.1 D 4 states that an appeal to the Department is to be treated as an application made pursuant to Va. Code § 58.1-1821. Under Title 23 of the Virginia Administrative Code (VAC) 10-20-165 F, a taxpayer's request for reconsideration must meet one of the four following requirements:
- 1.The facts upon which the original determination is based are misstated by the Tax Commissioner or are inaccurate, and the determination would have a different result based on a correction of the Tax Commissioner's misstatement of the facts presented or a clarification of the original facts presented in the taxpayer's administrative appeal;
- 3.The policy upon which the original determination is based is misapplied, and the determination would have a different result based on the application of the proper policy; or
- 4.The taxpayer has discovered additional evidence or documentation that was not available to the taxpayer at the time the original administrative appeal was filed with the Department, and the additional evidence or documentation could produce a result different from the original determination.
In P.D. 12-60, the Department determined that the use of a recognized pricing guide to ascertain the value of the taxicabs within its jurisdiction, along with adjustments made for their physical condition by the City met the requirements of the Constitution of Virginia. The Taxpayer now seeks a redetermination, contending the Department based its decision on erroneous facts and misconstrued the law.
The Taxpayer asserts the Department misstated a number of facts. After carefully reviewing the documentation and facts provided by both the Taxpayer and the City, I respectfully disagree with the Taxpayer's conclusion. The Department made a determination based on the evidence provided at the time. If the facts are misstated, it was the result of the Taxpayer's failure to clearly set forth the facts in its case or respond adequately to the Department's request for additional information.
Further, the additional information and documentation provided do not change the Departments determination. Because the valuation methodology used by the City appears to meet the standard set forth in the Constitution of Virginia, it is incumbent upon the Taxpayer to prove to the satisfaction of the City that it properly reported the value of its property on its BTPP returns. See Va. Code § 58.1-3983.1 B 4. As such, while I recognize the Taxpayer's continuing disagreement with the validity of the assessments, P.D. 12-60 clearly explains the Department's position and constitutes the Department's final determination on this issue.
Within the time permitted by statute, the Taxpayer may file an appeal with the appropriate circuit court for review pursuant to Va. Code §§ 58.1-3983.1 G and 58.1-3984. The law provides that neither the Tax Commissioner nor the Department shall be made party to such an appeal merely because the Tax Commissioner has ruled on the issue.
The Code of Virginia sections, regulation and public document cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's web site. If you have any questions regarding this response, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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- Craig M. Burns
Tax Commissioner
- Craig M. Burns
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AR/1-5091011686.B
Rulings of the Tax Commissioner