Local Mobile: Administration - Jurisdiction
November 14, 2024
Re: Notice of Jurisdiction
Taxpayer: *****
Locality Assessing Tax: City of *****
Local Tangible Personal Property Tax
Dear *****:
This notice of jurisdiction is issued upon the application for correction filed by ***** (the “Taxpayer”) with the Department. The Taxpayer appeals the assessment of tangible personal property tax by the City of ***** (the “City”) for the 2024 tax year.
The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections cited are available online at law.lis.virginia.gov. The public documents cited are available at tax.virginia.gov in the Laws, Rules, & Decisions section of the Department’s website.
FACTS
The Taxpayer received an assessment of tangible personal property tax for the 2024 tax year on a personal vehicle and a travel trailer he purchased in 2024. The Taxpayer filed an application for correction with the Department, contending that the assessment was too high.
ANALYSIS
Personal Vehicle
Under Virginia Code § 58.1-3983.1 D, the Department’s jurisdiction over appeals and rulings of local taxes is limited to final local determinations concerning local business and mobile property tax assessments. See Public Document (P.D.) 17-142 (8/7/2017) and P.D. 18-205 (12/10/2018). Neither business nor mobile property taxes include tangible personal property tax assessed against an individual’s personal vehicle.
Trailer
Although the Department does not have jurisdiction over cases involving local tangible personal property tax on personal vehicles, it does retain jurisdiction over cases involving “local mobile property tax,” defined under Virginia Code § 58.1-3983.1 as the tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers. The Department is prohibited, however, from making determinations regarding the valuation or method of valuation used in assessing local mobile property tax. See Virginia Code § 58.1-3983.1 D 5.
A taxpayer assessed with local mobile property tax may appeal such assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the assessment, whichever is later, to the commissioner of the revenue or other local assessing official. See Virginia Code § 58.1-3983.1 B 1. If a taxpayer wishes to appeal an assessment from a locality to the Department, they must first file a local administrative appeal pursuant to the process set forth in Virginia Code § 58.1-3983.1 B. Once a proper local appeal has been filed, the locality must undertake a full review of the taxpayer’s claims and issue a written determination setting forth the facts and analysis in support of the locality’s decision. Pursuant to Virginia Code § 58.1-3983.1 D, only when a final local determination has been issued can a taxpayer file an administrative appeal with the Department if they wish to contest any of the locality’s conclusions. Alternatively, a taxpayer may file an appeal with the Department if their appeal with the locality has been pending for more than one year and they provide the locality with at least 30 days written notice. See Virginia Code § 58.1-3983.1 B 6.
Virginia Code § 58.1-3983.1 B and the Guidelines for Appealing Local Mobile Property Taxes (the “Guidelines”), issued as Public Document (P.D.) 05-81 (6/9/2005), provide taxpayers further information regarding the procedures for appealing local mobile property tax assessments. In this case, there is no indication that the Taxpayer filed a local appeal with the City.
DETERMINATION
Based on applicable law, an assessment of tangible personal property tax on a personal vehicle is not an assessment of tax over which the Department has jurisdiction to hear an appeal. The Department understands that many localities set forth procedures for appealing an assessment, or requesting a reassessment, of property tax on a personal vehicle. The Department recommends visiting the City’s website or contacting them directly for further information.
In addition, before the Taxpayer has a right to appeal to the Department with respect to the assessment on the travel trailer, the Taxpayer must first file an appeal with the City pursuant to Virginia Code § 58.1-3983.1 and the Guidelines. Should the Taxpayer do so, the City must issue a final local determination in accordance with the same. Once a final local determination is issued, the Taxpayer will have 90 days to file an appeal with the Department if he disagrees with the outcome. If the case has been pending with the City for more than one year, the Taxpayer may also appeal to the Department after giving the City the requisite notice. The Department, however, would decline to issue a determination if the matter only involved valuation of the property.
If you have any questions regarding this notice of jurisdiction, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at (804) ***** or *****@tax.virginia.gov.
Sincerely,
James J. Alex
Tax Commissioner
Commonwealth of Virginia