Bulletin Number
VTB 90-5
Tax Type
Local Taxes
Property Tax
Description
Assessment of Railroads and Interstate Pipelines for Local Tax Purposes
Topic
Local Power to Tax
Local Taxes Discussion
Date Issued
07-03-1990
90-5
Assessment of Railroads and Interstate
Pipelines for Local Tax Purposes
Pipelines for Local Tax Purposes
On Friday, June 8, 1990, the Virginia Supreme Court rendered its decision in County Board of Arlington County, et al. v. Commonwealth of Virginia Department of Taxation et al. The Supreme Court held for Arlington County, reversing the decision in this matter of the Circuit Court of the City of Richmond and remanding the case to the lower court for further proceedings.
The effect of this decision is to make illegal the use of the unit rule in the valuation for tax purposes of certain public service corporation properties. The Department of Taxation has employed the unit rule in making assessments of railroads and interstate pipeline transmission companies since 1984.
The most immediate issues facing the Department are the completion of assessments for 1990 using a methodology which is consonant with the Court's decision and the preservation of the 1987 assessment year for later correction.
The Department issues its assessments of railroads and pipelines for local tax purposes annually around September 1, The Department considers it unlikely that it will be able to issue corrected assessments for the 1987 tax year before September 1, 1990, and that, barring appeals from affected taxpayers or counties, cities, or towns, the statute of limitations may prevent the correction of 1987 assessments.
A general informational meeting open to all localities and to taxpayer railroads and pipelines will be held Wednesday, July 18, 1990 at 2:00 PM in House Room D, General Assembly Building in Capital Square, Richmond. Representatives of The Department will be present to offer information on the procedures to be employed in making the 1990 assessments and to answer questions concerning the correction of past years' assessments.
Tax Bulletins