HB1687: Real property tax; increases in assessed value for prior years.
HOUSE BILL NO. 1687
Be it enacted by the General Assembly of Virginia:
1. That 58.1-3903 and 58.1-3981 of the Code of Virginia are amended and reenacted as follows:
58.1-3903. Omitted local taxes or levies.
A. If
the commissioner of the revenue of any county or city or the tax-assessing
officer of any town ascertains that any local tax,
except as provided in subsection B for
real property taxes,
has not been assessed for any tax year of the three preceding tax years or that
the same has been assessed at less than the law required for any one or more of
such years, or that the taxes for any cause have not been realized, the
commissioner of the revenue or other assessing officer shall list and assess
the same with taxes at the rate or rates prescribed for that year, adding
thereto penalty and interest at the rate provided under 58.1-3916 and
58.1-3918. Interest may be computed upon the taxes and penalty from the first
day following the due date in the year in which such taxes should have been
paid and shall accrue thereon from such date until payment;, provided, that if such assessment was
necessitated through no fault of the taxpayer, such penalty and interest shall
accrue after thirty 30 days from such date of
assessment until payment.
B. For real
property taxes concerning the validity of the assessed value of
real property, if the commissioner of the
revenue of any county or city or the tax-assessing officer of any town
ascertains that the value of real property has not been assessed in the
preceding tax year or that the value of the real property has
been assessed at less than the law requires for such year, the commissioner of
the revenue or other assessing officer shall list and assess the same with
taxes at the rate or rates prescribed for that year, adding thereto penalty and
interest at the rate provided under 58.1-3916 and 58.1-3918. Interest may be
computed upon the taxes and penalty from the first day following the due date
in the preceding tax year by which taxes should have been paid and shall accrue
thereon from such date until payment, provided that if such assessment was
necessitated through no fault of the taxpayer, such penalty and interest shall
accrue after 30 days from such date of assessment until payment.
58.1-3981. Correction by commissioner or other official performing his duties.
A. If the commissioner of the revenue, or other official performing the duties imposed on commissioners of the revenue under this title, is satisfied that he has erroneously assessed such applicant with any such tax, he shall correct such assessment. If the assessment exceeds the proper amount, he shall exonerate the applicant from the payment of so much as is erroneously charged if not paid into the treasury of the county or city. If the assessment has been paid, the governing body of the county or city shall, upon the certificate of the commissioner with the consent of the town, city or county attorney, or if none, the attorney for the Commonwealth, that such assessment was erroneous, direct the treasurer of the county, city or town to refund the excess to the taxpayer, with interest if authorized pursuant to 58.1-3918 or in the ordinance authorized by 58.1-3916, or as otherwise authorized in that section. However, the governing body of the county, city or town may authorize the treasurer to approve and issue any refund up to $2,500 as a result of an erroneous assessment.
B. If the assessment is less than the proper amount, the commissioner shall assess such applicant with the proper amount. If any assessment is erroneous because of a mere clerical error or calculation, the same may be corrected as herein provided and with or without petition from the taxpayer. If such error or calculation was made in work performed by others in connection with conducting general assessments, such mistake may be corrected by the commissioner of the revenue. In no event shall an increase in real property taxes due to an increase in the assessed value of the property apply to any year other than the current and preceding tax year.
C. If the commissioner of the revenue, or other official performing the duties imposed on commissioners of the revenue under this title, is satisfied that any assessment is erroneous because of a factual error made in work performed by others in connection with conducting general reassessments, he shall correct such assessment as herein provided and with or without petition from the taxpayer.
D. An error in the valuation of property subject to the rollback tax imposed under 58.1-3237 for those years to which such tax is applicable may be corrected within three years of the assessment of the rollback tax.
E. A copy of any correction made under this section shall be certified by the commissioner or such other official to the treasurer of his county, city or town. When an unpaid erroneous assessment of real estate is corrected under this section and such real estate has been sold at a delinquent land sale, the commissioner or such other official making such correction shall certify a copy of such correction to the clerk of the circuit court of his county or city; and such clerk shall note such correction in the delinquent land book opposite the entry of the tract or lot for the year or years for which such correction is made.
F. In any action on application for correction under 58.1-3980, if so requested by the applicant, the commissioner or other such official shall state in writing the facts and law supporting the action on such application and mail a copy of such writing to the applicant at his last known address.