Tax Type
Property Tax
Description
1984 Legislative Changes
Topic
Property Subject to Tax
Date Issued
06-01-1984
DATE: June 1, 1984
SUBJECT: Property Taxation: 1984 Legislative Changes
The purpose of this bulletin is to announce the enactment by the 1984 Session of the General Assembly of certain laws affecting the area of local property taxation. All of these Acts are effective July 1, 1984.
Household Appliances in Residential Rental Property: Household appliances in residential rental property used by an individual or by a family or household incident to maintaining an abode and owned by the owner of the real estate are to be assessed as part of the real estate in which they are located. "Household appliances" means all major appliances customarily used in a home and which are the property of the real estate owner. These appliances in apartment houses and other rental residential real estate can no longer be assessed as business tangible personal property. (Chapter 768, House Bill No. 468).
Property of Cable Television Businesses: H.B. 827, enacted by the 1984 Session of the General Assembly, separately states and redefines the personal property, tangible in fact, of cable television businesses which constitutes intangible personal property. As redefined, intangible personal property, tangible in fact, except machines and tools, motor vehicles and delivery equipment, trunk and feeder cables, studio equipment, antennae and office furniture and equipment. Property of cable television businesses previously classified as machinery and tools is now defined as intangible personal property exempt from state and local taxation. Machines and tools, a new category of property, apparently actual machines and tools of cable television businesses, is now excluded from the definition of intangible personal property and is subject to local taxation as tangible personal property.
Machinery and Tools: Motor vehicles which are not registered with the Division of Motor Vehicles are to be included in the classification of machinery and tools if used-in the various businesses subject to machinery and tools taxation. Essentially, these are motor vehicles and delivery equipment which are not licensed to travel on the highway. (Chapter 680, House Bill No. 320).
Machinery and equipment used by farm wineries in the production of wine shall no longer be machinery and tools but will be classified as farm machinery. Wine in the hands of a farm winery shall be exempt from taxation as it is now classified as an agricultural product. (Chapter 150, Senate Bill No. 126).
Capitalized interest shall now be excluded from the cost base in the valuation of machinery and tools. (Chapter 679, House Bill No. 319).
Tangible Personal Property. Computer application software which is defined as computer instructions, in any form, which are designed to be read by a computer and to enable it to perform specific operations with data or information stored by the computer, is no longer classified as tangible personal property. This software shall now be classified as intangible personal property which effectively exempts it from taxation. (Chapter 171. House Bill No. 211).
Trucks of two tons or greater may be valued by means of a recognized pricing guide or a percentage or percentages of original cost. If a pricing guide is used the lowest value specified in the guide must be used.
When a recognized pricing guide is used in the valuation of tangible personal property the assessment may be automatically extended if the pricing information is stored in the computer. (Chapter 689, House Bill No. 776).
Failure to File Returns: Any local ordinance requiring the filing of a return for tax purposes may prescribe criminal penalties for the intentional failure to file the return. These penalties shall not exceed a fine of $500. (Chapter 328, House Bill No. 504).
Use Value Assessment: The governing body may now prescribe the interest rate on roll-back taxes but this rate may not be higher than the interest rate applicable on delinquent taxes in the locality. The law is also clarified in respect to property liable for roll-back tax. Only that portion of the real estate which no longer qualifies for use value assessment is subject to roll-back taxes. (Chapter 676, House Bill No. 222).
Penalties for a material misstatement of fact on a use value application may only be applied if the material misstatement was made with the intent to defraud the locality. (Chapter 681, House Bill No. 418).
Under current law once property is rezoned to a more intensive use it is no longer eligible for use value assessment. The law is now changed to allow use value assessment again three years after the property is rezoned to agricultural zoning. (Chapter 222, House Bill No. 456).
Real Estate Assessments: Counties with a population of 50,000 or less may now provide for reassessments at six year intervals. (Chapter 273, Senate Bill No. 92).
Any locality may provide for the abatement of levies on buildings which are razed or destroyed or damaged by a fortuitous happening beyond the control of the owner. (Chapter 372, House Bill No. 278).
Tax Relief for the Elderly: A minor language change in § 58-760.1 has no effect on the eligibility requirements or administration of local tax relief for the elderly programs. Chapter 267, House Bill No. 555).
Rulings of the Tax Commissioner