HomeMy WebLinkAbout066-21 (OrdAmendmentChapter155Taxation(BusinessLicenseTaxRefunds)) •r
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ORDINANCE
February 10, 2021
The Board of Supervisors of Frederick County, Virginia hereby ordains that Sections
155-85 (Proration of tax) of Article XVI (Business License Provisions) of Chapter 155 (Taxation)
of the Code of Frederick County, Virginia be, and the same hereby is, amended by enacting an
amended Sections 155-85 (Proration of tax) of Article XVI (Business License Provisions) of
Chapter 155 (Taxation) of the Code of Frederick County, Virginia, as follows (deletions shown in
stFikethreug ; additions shown in bold underline):
CHAPTER 155 Taxation
ARTICLE XVI Business License Provisions
§ 155-85 Proration of tax.
A. In the event that a person, firm.,or corporation ceases to engage in a business, trade,
profession, occupation, or calling within the County during a year for which the person,
firm, or corporation a 'jG8RG8 tax has already beef} paid a license tax or, to the
extent that the Commissioner of the Revenue determines that a person, firm, or
corporation has incorrectly aid license tax in an amount greater than determined
to be actually due, the taxpayer shall be entitled upon application to a refund for that
portion of a license tax already paid that corresponds to the excess payment bV the
person, firm or corporation, or, in the instance of a person, firm or corporation
that ceases to engage in a business, trade, profession, occupation, or calling
within the County, prorated on a monthly basis so as to ensure that the licensed
privilege is taxed only for that fraction of the year during which it is exercised within the
County. Frederick County may elect to remit any refunds in the ensuing fiscal year and
may offset against such refund any amount of past due taxes owed by the same
taxpayer. In no event shall the County be required to refund any part of a minimum flat
tax or the flat portion of the fee which is not based upon the gross receipts of the
taxpayer.
B. Licenses issued on a basis other than gross receipts or gross purchases, that is, those
assessed a flat license fee, shall not be prorated for any period less than one calendar
year, except as provided by the Code of Virginia 1950, as amended, and except as
otherwise provided in this article.
Enacted this 10th day of February, 2021.
Charles S. DeHaven, Jr., Chairman Aye Shawn L. Graber Aye
J. Douglas McCarthy Aye Robert W. Wells Aye
Blaine P. Dunn Aye David D. Stegmaier Aye
Judith McCann-Slaughter Aye
A COPY ATTEST
Kris C. [ferney
Frederick County Administrator
Res. # 066-21
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CODE& ORDINANCE COMMITTEE REPORT to the BOARD OF SUPERVISORS
Tuesday,December S,2020
3:00 p.m.
107 NORTH KENT STREET,WINCHESTER,VIRGINIA
A'T'TENDEES:
Committee Members Present: J.Douglas McCarthy, Chair;Blaine P. Dunn; Stephen Butler,and
Derek Aston
Committee Members Absent: James Drown
Staff Present: Roderick B.Williams, County Attorney;Jay E.Tibbs,Deputy County Administrator;
Kathryn Corbit, Chief Admin for the Business Division, Commissioner of the Revenue's Office.
ITEMS FOR BOARD OF SUPERVISORS ACTION:
1. Proposed Revision to Frederick County Code, Chapter 155 Taxation.,Article IX Assessment
of Court Costs for Courthouse Security, §155-46 Fee Imposed; collection; use.
Mr. Williams reviewed the proposed revision. The General Assembly during its 2020 Regular Session
passed legislation increasing the courthouse security fee that localities may impose as part of the court costs
in each criminal case in which a defendant is convicted of a violation of any statute or ordinance. The
proposed ordinance would increase the current$10 fee to $20. The Clerk of the Circuit Court requested
consideration of this fee increase.
Upon a motion by Mr. Aston, seconded by Mr. Butler,the Code and Ordinance Committee forwarded the
proposed ordinance amendment to the Board of Supervisors for public hearing with a recommendation of
approval. The motion was unanimously approved.
2. Proposed revision to Frederick County Code, Chapter 155, Taxation,Article XVI Business
License Provisions, §155-85 Proration of tax.
Mr. Williams reviewed the proposed revision to Chapter 155,Taxation. The General Assembly during its
2020 Regular Session passed legislation permitting a local governing body to authorize the locality's treasurer
to issue any refund up to$5,000 as a result of an erroneous tax assessment. The legislation increased the
amount from$2,500 to $5,000. For any refund above$5,000, the governing body must approve the refund.
The proposed amendment would confirm that the authority for such refunds extends to refunds of business
license taxes.
Upon a motion by Mr. Butler, seconded by Mr. Dunn,the Code and Ordinance Committee forwarded the
proposed ordinance amendment to the Board of Supervisors for public hearing with a recommendation of
approval. The motion was unanimously approved.
3. Proposed revision to Frederick County Code, Chapter 155,Taxation,Article XVI Business
License Provisions, §155-110 Violations and penalties.
Mr. Williams reviewed the proposed revision to Chapter 155,Taxation. The General Assembly during its
2012 Regular Session passed legislation permitting a locality to required that no business license shall be
issued to an applicant therefor until that person has produced satisfactory evidence that all delinquent
business license,real estate,personal property,meals, transient occupancy,severance,and admissions taxes
owed by the business to the locality have been paid which have been properly assessed against the applicant
by the locality.
Upon a motion by Mr. Dunn, seconded by Mr. Butler,the Code and Ordinance Committee forwarded the
proposed ordinance amendment to the Board of Supervisors for public hearing with a recommendation of
approval. The motion was unanimously approved.
There being no further business, the meeting was adjourned at 3:25 p.m.
.r
COUNTY OF FREDERICK
Roderick B.Williams
County Attorney
540/722-8383
Fax 540/667-0370
E-mail rwillia@fcva.us
MEMORANDUM
TO: Code & Ordinance Committee
FROM: Roderick B. Williams, County Attorney
DATE: December 1,2020
RE: Ordinance Regarding Refunds of Erroneously Assessed Business License Taxes
The General Assembly at its 2020 Regular Session passed legislation permitting a local
governing body to authorize the locality's treasurer to issue any refund of up to $5,000 as a result
of an erroneous tax assessment. The legislation increased the amount from $2,500 to $5,000.
For any refund above $5,000,the governing body must approve the refund. A copy of the
legislation,which amended Va. Code § 58.1-3981, is attached.
County Code § 155-136 (copy attached)permits the County's Treasurer to make such
refunds as to property taxes and County Code § 155-85 permits the County's Treasurer to make
such refunds as to business license taxes, but § 155-85 does so only in instances in which the
business has ceased to do business. Frequently,however, instances arise with the business
license tax,just as with the personal property tax, where taxpayers remain in business, frequently
as successful enterprises, and file amended returns, for any number of legitimate reasons, which
result in refunds due for portions of the tax paid(the Commissioner of the Revenue still must
determine whether an assessment was erroneous). So that the Treasurer may proceed with these
refunds, if not more than $5,000,without the need to have the matter go on the Board agenda, an
amendment to § 155-85 would be needed.
A draft proposed revision to §155-85,adding language to allow the Treasurer to issue
business license refunds in instances of erroneous business license assessments, is attached. The
draft also adds the word "occupation"to the term "business,trade,profession, or calling", for
consistency with other provisions in the County Code regarding business license taxes. This
memorandum serves as a request for a recommendation from the Code& Ordinance Committee
as to whether to forward this item to the Board of Supervisors for further consideration.
Attachments
cc: Kris C. Tierney, County Administrator
Jay E. Tibbs,Deputy County Administrator
107 North Kent Street • Winchester, Virginia 22601
VIRGINIA ACTS OF ASSEMBLY -- 2020 SESSION
CHAPTER 240
An Act to amend and reenact § 58.1-3981 of the Code of Virginia, relating to refunds of local taxes;
authority of treasurer.
[H 316]
Approved March 10,2020
Be it enacted by the General Assembly of Virginia:
1. That §58.1-3981 of the Code of Virginia is amended and reenacted as follows:
§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 .$5,000 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.
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.
E. 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.
10/30/2020 Frederick County,VA Ecode360
Frederick County, VA
Friday, October 30, 2020
Chapter 155. Taxation
Article XXI. Refund of Local Taxes
§ 155-136. Refunds.
Pursuant to the authority granted by § 58.1-3990 of the Code of Virginia 1950, as amended, the
Commissioner of the Revenue may authorize a refund on erroneously assessed property designated
for local taxation. No refund shall be made in any case when application therefor was made more than
three years after the last day of the tax year for which such taxes were assessed.
https:ltwww.ecode360.com/print/FR1364?guid=8707468 111