SB1171: Aircraft; establishes separate class of tangible personal property therefor.
Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-3506 and 58.1-3916 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-3506. Other classifications of tangible personal property for taxation.
A. The items of property set forth below are each declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of tangible personal property provided in this chapter:
1. a. Boats or watercraft weighing five tons or more, not used solely for business purposes;
b. Boats or watercraft weighing less than five tons, not used solely for business purposes;
2. Aircraft having a maximum passenger seating capacity of no more than 50 that are owned and operated by scheduled air carriers operating under certificates of public convenience and necessity issued by the State Corporation Commission or the Civil Aeronautics Board;
3. Aircraft having a registered empty gross weight equal to or greater than 20,000 pounds that are not owned or operated by scheduled air carriers recognized under federal law, but not including any aircraft described in subdivision 4;
4. Aircraft that are (i) at least 50 years old and (ii) used only for (a) exhibit or display to the general public (including such flights as are necessary for testing, maintaining, or preparing such aircraft for safe operation) or (b) air show and flight demonstrations (including such flights as are necessary for testing, maintaining, or preparing such aircraft for safe operation). This class of property shall not include any aircraft used for commercial or private general transportation;
45. All
other aircraft not included in subdivisions A 2 or,
A 3, or A 4 and flight simulators;
56. Antique
motor vehicles as defined in § 46.2-100 which may be used for general
transportation purposes as provided in subsection C of § 46.2-730;
67. Tangible
personal property used in a research and development business;
78. Heavy
construction machinery not used for business purposes, including but not
limited to land movers, bulldozers, front-end loaders, graders, packers, power
shovels, cranes, pile drivers, forest harvesting and silvicultural activity
equipment and ditch and other types of diggers;
89.
Generating equipment purchased after December 31, 1974, for the purpose of
changing the energy source of a manufacturing plant from oil or natural gas to
coal, wood, wood bark, wood residue, or any other alternative energy source for
use in manufacturing and any cogeneration equipment purchased to achieve more
efficient use of any energy source. Such generating equipment and cogeneration
equipment shall include, without limitation, such equipment purchased by firms
engaged in the business of generating electricity or steam, or both;
910.
Vehicles without motive power, used or designed to be used as manufactured
homes as defined in § 36-85.3;
1011.
Computer hardware used by businesses primarily engaged in providing data
processing services to other nonrelated or nonaffiliated businesses;
1112.
Privately owned pleasure boats and watercraft, 18 feet and over, used for
recreational purposes only;
1213.
Privately owned vans with a seating capacity of not less than seven nor more
than 15 persons, including the driver, used exclusively pursuant to a
ridesharing arrangement as defined in § 46.2-1400;
1314. Motor
vehicles specially equipped to provide transportation for physically
handicapped individuals;
1415. Motor
vehicles (i) owned by members of a volunteer rescue squad or volunteer fire
department or (ii) leased by members of a volunteer rescue squad or volunteer
fire department if the member is obligated by the terms of the lease to pay
tangible personal property tax on the motor vehicle. One motor vehicle that is
owned by each volunteer rescue squad member or volunteer fire department
member, or leased by each volunteer rescue squad member or volunteer fire
department member if the member is obligated by the terms of the lease to pay
tangible personal property tax on the motor vehicle, may be specially
classified under this section, provided the volunteer rescue squad member or
volunteer fire department member regularly responds to emergency calls. The volunteer
shall furnish the commissioner of revenue, or other assessing officer, with a
certification by the chief or head of the volunteer organization, that the
volunteer is a member of the volunteer rescue squad or fire department who
regularly responds to calls or regularly performs other duties for the rescue
squad or fire department, and the motor vehicle owned or leased by the
volunteer rescue squad member or volunteer fire department member is
identified. The certification shall be submitted by January 31 of each year to
the commissioner of revenue or other assessing officer; however, the
commissioner of revenue or other assessing officer shall be authorized, in his
discretion, and for good cause shown and without fault on the part of the
member, to accept a certification after the January 31 deadline. In any county
that prorates the assessment of tangible personal property pursuant to §
58.1-3516, a replacement vehicle may be certified and classified pursuant to
this subsection when the vehicle certified as of the immediately prior January
date is transferred during the tax year;
1516. Motor
vehicles (i) owned by auxiliary members of a volunteer rescue squad or
volunteer fire department or (ii) leased by auxiliary members of a volunteer
rescue squad or volunteer fire department if the member is obligated by the
terms of the lease to pay tangible personal property tax on the motor vehicle.
One motor vehicle that is regularly used by each auxiliary volunteer fire
department or rescue squad member may be specially classified under this
section. The auxiliary member shall furnish the commissioner of revenue, or
other assessing officer, with a certification by the chief or head of the
volunteer organization, that the volunteer is an auxiliary member of the volunteer
rescue squad or fire department who regularly performs duties for the rescue
squad or fire department, and the motor vehicle is identified as regularly used
for such purpose; however, if a volunteer rescue squad or fire department
member and an auxiliary member are members of the same household, that
household shall be allowed no more than two special classifications under this
subdivision or subdivision 1415 of this
section. The certification shall be submitted by January 31 of each year to the
commissioner of revenue or other assessing officer; however, the commissioner
of revenue or other assessing officer shall be authorized, in his discretion,
and for good cause shown and without fault on the part of the member, to accept
a certification after the January 31 deadline;
1617. Motor
vehicles owned by a nonprofit organization and used to deliver meals to
homebound persons or provide transportation to senior or handicapped citizens
in the community to carry out the purposes of the nonprofit organization;
1718.
Privately owned camping trailers as defined in § 46.2-100, and privately owned
travel trailers as defined in § 46.2-1900, which are used for recreational
purposes only, and privately owned trailers as defined in § 46.2-100 which are
designed and used for the transportation of horses except those trailers
described in subdivision A 11 of § 58.1-3505;
1819. One
motor vehicle owned and regularly used by a veteran who has either lost, or
lost the use of, one or both legs, or an arm or a hand, or who is blind or who
is permanently and totally disabled as certified by the Department of Veterans
Services. In order to qualify, the veteran shall provide a written statement to
the commissioner of revenue or other assessing officer from the Department of
Veterans Services that the veteran has been so designated or classified by the
Department of Veterans Services as to meet the requirements of this section,
and that his disability is service-connected. For purposes of this section, a
person is blind if he meets the provisions of § 46.2-739;
1920. Motor
vehicles (i) owned by persons who have been appointed to serve as auxiliary
police officers pursuant to Article 3 (§ 15.2-1731 et seq.) of Chapter 17 of
Title 15.2 or (ii) leased by persons who have been so appointed to serve as
auxiliary police officers if the person is obligated by the terms of the lease
to pay tangible personal property tax on the motor vehicle. One motor vehicle
that is regularly used by each auxiliary police officer to respond to auxiliary
police duties may be specially classified under this section. In order to
qualify for such classification, any auxiliary police officer who applies for
such classification shall identify the vehicle for which this classification is
sought, and shall furnish the commissioner of revenue or other assessing
officer with a certification from the governing body that has appointed such
auxiliary police officer or from the official who has appointed such auxiliary
officers. That certification shall state that the applicant is an auxiliary
police officer who regularly uses a motor vehicle to respond to auxiliary
police duties, and it shall state that the vehicle for which the classification
is sought is the vehicle that is regularly used for that purpose. The certification
shall be submitted by January 31 of each year to the commissioner of revenue or
other assessing officer; however, the commissioner of revenue or other
assessing officer shall be authorized, in his discretion, and for good cause
shown and without fault on the part of the member, to accept a certification
after the January 31 deadline;
2021. Until
the first to occur of June 30, 2009, or the date that a special improvements
tax is no longer levied under § 15.2-4607 on property within a Multicounty Transportation
Improvement District created pursuant to Chapter 46 (§ 15.2-4600 et seq.) of
Title 15.2, tangible personal property that is used in manufacturing, testing,
or operating satellites within a Multicounty Transportation Improvement
District, provided that such business personal property is put into service
within the District on or after July 1, 1999;
2122. Motor
vehicles which use clean special fuels as defined in § 46.2-749.3;
2223. Wild or
exotic animals kept for public exhibition in an indoor or outdoor facility that
is properly licensed by the federal government, the Commonwealth, or both, and
that is properly zoned for such use. "Wild animals" means any animals
that are found in the wild, or in a wild state, within the boundaries of the United
States, its territories or possessions. "Exotic animals" means any
animals that are found in the wild, or in a wild state, and are native to a
foreign country;
2324.
Furniture, office, and maintenance equipment, exclusive of motor vehicles, that
are owned and used by an organization whose real property is assessed in
accordance with § 58.1-3284.1 and that is used by that organization for the
purpose of maintaining or using the open or common space within a residential
development;
2425. Motor
vehicles, trailers, and semitrailers with a gross vehicle weight of 10,000
pounds or more used to transport property for hire by a motor carrier engaged
in interstate commerce;
2526. All
tangible personal property employed in a trade or business other than that described
in subdivisions A 1 through A 18, except for subdivision A 17, of § 58.1-3503;
2627.
Programmable computer equipment and peripherals employed in a trade or
business;
2728.
Privately owned pleasure boats and watercraft, motorized and under 18 feet,
used for recreational purposes only;
2829.
Privately owned pleasure boats and watercraft, nonmotorized and under 18 feet,
used for recreational purposes only;
2930.
Privately owned motor homes as defined in § 46.2-100 that are used for
recreational purposes only;
3031.
Tangible personal property used in the provision of Internet services. For
purposes of this subdivision, "Internet service" means a service,
including an Internet Web-hosting service, that enables users to access
content, information, electronic mail, and the Internet as part of a package of
services sold to customers;
3132. Motor
vehicles (i) owned by persons who serve as auxiliary, reserve, or special
deputy sheriffs or (ii) leased by persons who serve as auxiliary, reserve, or
special deputy sheriffs if the person is obligated by the terms of the lease to
pay tangible personal property tax on the motor vehicle. For purposes of this
subdivision, the term "auxiliary deputy sheriff" means auxiliary,
reserve, or special deputy sheriff. One motor vehicle that is regularly used by
each auxiliary deputy sheriff to respond to auxiliary deputy sheriff duties may
be specially classified under this section. In order to qualify for such
classification, any auxiliary deputy sheriff who applies for such
classification shall identify the vehicle for which this classification is
sought, and shall furnish the commissioner of revenue or other assessing
officer with a certification from the governing body that has appointed such
auxiliary deputy sheriff or from the official who has appointed such auxiliary
deputy sheriff. That certification shall state that the applicant is an
auxiliary deputy sheriff who regularly uses a motor vehicle to respond to such
auxiliary duties, and it shall state that the vehicle for which the
classification is sought is the vehicle that is regularly used for that
purpose. The certification shall be submitted by January 31 of each year to the
commissioner of revenue or other assessing officer; however, the commissioner
of revenue or other assessing officer shall be authorized, in his discretion,
and for good cause shown and without fault on the part of the member, to accept
a certification after the January 31 deadline;
3233. Forest
harvesting and silvicultural activity equipment;
3334.
Equipment used primarily for research, development, production, or provision of
biotechnology for the purpose of developing or providing products or processes
for specific commercial or public purposes, including, but not limited to,
medical, pharmaceutical, nutritional, and other health-related purposes;
agricultural purposes; or environmental purposes but not for human cloning
purposes as defined in § 32.1-162.21 or for products or purposes related to
human embryo stem cells. For purposes of this section, biotechnology equipment
means equipment directly used in activities associated with the science of
living things;
3435. Boats
or watercraft weighing less than five tons, used for business purposes only;
and
3536. Boats
or watercraft weighing five tons or more, used for business purposes only.
B. The governing body of any county, city or town may levy a
tax on the property enumerated in subsection A at different rates from the tax
levied on other tangible personal property. The rates of tax and the rates of
assessment shall (i) for purposes of subdivisions 1, 2, 3, 4, 5, 76, 8,
10
through 1911 through 20, 21 through 2322
through 24, and 25 through 3526 through 36
of subsection A, not exceed that applicable to the general class of tangible
personal property, (ii) for purposes of subdivisions A 6, A 8, A 20, and A 24A 7, A
9, A 21, and A 25, not exceed that applicable to machinery and
tools, and (iii) for purposes of subdivision A 9A 10,
equal that applicable to real property.
C. Notwithstanding any other provision of this section, for any qualifying vehicle, as such term is defined in § 58.1-3523, (i) included in any separate class of property in subsection A and (ii) assessed for tangible personal property taxes by a county, city, or town receiving a payment from the Commonwealth under Chapter 35.1 of this title for providing tangible personal property tax relief, the county, city, or town may levy the tangible personal property tax on such qualifying vehicle at a rate not to exceed the rates of tax and rates of assessment required under such chapter.
§ 58.1-3916. Counties, cities and towns may provide dates for filing returns, set penalties, interest, etc.
Notwithstanding provisions contained in §§ 58.1-3518, 58.1-3900, 58.1-3913, 58.1-3915 and 58.1-3918, the governing body of any county, city, or town may provide by ordinance the time for filing local license applications and annual returns of taxable tangible personal property, machinery and tools, and merchants' capital. The governing body may also by ordinance establish due dates for the payment of local taxes; may provide that payment be made in a single installment or in two equal installments; may offer options, which may include coupon books and payroll deductions, which allow the taxpayer to determine whether to pay the tangible personal property tax through monthly, bimonthly, quarterly, or semiannual installments or in a lump sum, provided such taxes are paid in full by the final due date; may provide by ordinance penalties for failure to file such applications and returns and for nonpayment in time; may provide for payment of interest on delinquent taxes; and may provide for the recovery of reasonable attorney's or collection agency's fees actually contracted for, not to exceed 20 percent of the delinquent taxes and other charges so collected. A locality that provides for payment of interest on delinquent taxes shall provide for interest at the same rate on overpayments due to erroneously assessed taxes to be paid to the taxpayer, provided that no interest shall be required to be paid on such refund if (i) the amount of the refund is $10 or less or (ii) the refund is the result of proration pursuant to § 58.1-3516. A court that finds that an overpayment of local taxes has been made in an action brought pursuant to § 58.1-3984 shall award interest at the appropriate rate, notwithstanding the failure of the locality to conform its ordinance to the requirements of this section.
No tax assessment or tax bill shall be deemed delinquent and subject to the collection procedures prescribed herein during the pendency of any administrative appeal under § 58.1-3980, so long as the appeal is filed within 90 days of the date of the assessment, and for 30 days after the date of the final determination of the appeal, provided that nothing in this paragraph shall be construed to preclude the assessment or refund, following the final determination of such appeal, of such interest as otherwise may be provided by general law as to that portion of a tax bill that has remained unpaid or was overpaid during the pendency of such appeal and is determined in such appeal to be properly due and owing.
Interest may commence not earlier than the first day following
the day such taxes are due by ordinance to be filed, at a rate not to exceed 10
percent per year. The governing body may impose interest at a rate not to
exceed the rate of interest established pursuant to § 6621 of the Internal
Revenue Code of 1954, as amended, or 10 percent annually, whichever is greater,
for the second and subsequent years of delinquency. No penalty for failure to
pay a tax or installment shall exceed (i) 10 percent of the tax past due on
such property; (ii) in the case of delinquent tangible personal property tax
more than 30 days past due on property classified pursuant to subdivision A 14,
A 15 or A 19A 15, A 16, or A 20 of § 58.1-3506,
which remains unpaid after 10 days' written notice sent by United States mail
to the taxpayer of the intention to impose a penalty pursuant hereto, the penalty
shall not exceed an amount equal to the difference between the tax due and
owing with respect to such property and the tax that would have been due and
owing if the property in question had been classified as general tangible
personal property pursuant to § 58.1-3503; (iii) in the case of delinquent
tangible personal property tax more than 30 days past due, 25 percent of the
tax past due on such tangible personal property; (iv) in the case of delinquent
remittance of excise taxes on meals, lodging, or admissions collected from
consumers, 10 percent for the first month the taxes are past due, and five
percent for each month thereafter, up to a maximum of 25 percent of the taxes
collected but not remitted; or (v) $10, whichever is greater, provided, however,
that the penalty shall in no case exceed the amount of the tax assessable. No
penalty for failure to file a return shall be greater than 10 percent of the
tax assessable on such return or $10, whichever is greater; provided, however,
that the penalty shall in no case exceed the amount of the tax assessable. The
assessment of such penalty shall not be deemed a defense to any criminal
prosecution for failing to make return of taxable property as may be required
by law or ordinance. Penalty for failure to file an application or return may
be assessed on the day after such return or application is due; penalty for
failure to pay any tax may be assessed on the day after the first installment
is due. Any such penalty when so assessed shall become a part of the tax.
No penalty for failure to pay any tax shall be imposed for any assessment made later than two weeks prior to the day on which the taxes are due, if such assessment is made thereafter through the fault of a local official, and if such assessment is paid within two weeks after the notice thereof is mailed.
In the event a transfer of real property ownership occurs after January 1 of a tax year and a real estate tax bill has been mailed pursuant to §§ 58.1-3281 and 58.1-3912, the treasurer or other appropriate local official designated by ordinance of the local governing body in jurisdictions not having a treasurer, upon ascertaining that a property transfer has occurred, may invalidate a bill sent to the prior owner and reissue the bill to the new owner as permitted by § 58.1-3912, and no penalty for failure to pay any tax for any such assessment shall be imposed if the tax is paid within two weeks after the notice thereof is mailed.
Penalty and interest for failure to file a return or to pay a tax shall not be imposed if such failure was not the fault of the taxpayer, or was the fault of the commissioner of revenue or the treasurer, as the case may be. The failure to file a return or to pay a tax due to the death of the taxpayer or a medically determinable physical or mental impairment on the date the return or tax is due shall be presumptive proof of lack of fault on the taxpayer's part, provided the return is filed or the taxes are paid within 30 days of the due date; however, if there is a committee, legal guardian, conservator or other fiduciary handling the individual's affairs, such return shall be filed or such taxes paid within 120 days after the fiduciary qualifies or begins to act on behalf of the taxpayer. Interest on such taxes shall accrue until paid in full. Any such fiduciary shall, on behalf of the taxpayer, by the due date, file any required returns and pay any taxes that come due after the 120-day period. The treasurer shall make determinations of fault relating exclusively to failure to pay a tax, and the commissioner of the revenue shall make determinations of fault relating exclusively to failure to file a return. In jurisdictions not having a treasurer or commissioner of the revenue, the governing body may delegate to the appropriate local tax officials the responsibility to make the determination of fault.
The governing body may further provide by resolution for reasonable extensions of time, not to exceed 90 days, for the payment of real estate and personal property taxes and for filing returns on tangible personal property, machinery and tools, and merchants' capital, and the business, professional, and occupational license tax, whenever good cause exists. The official granting such extension shall keep a record of every such extension. If any taxpayer who has been granted an extension of time for filing his return fails to file his return within the extended time, his case shall be treated the same as if no extension had been granted.
This section shall be the sole authority for local ordinances setting due dates of local taxes and penalty and interest thereon, and shall supersede the provisions of any charter or special act.