§ 23-8.1. Administrative appeals and rulings to commissioner of the revenue or other assessing official.

(a)

Definitions. For purposes of sections 23-8.1, 23-8.2 and 23-8.3:

Amount in dispute when used with respect to taxes due or assessed, means the amount specifically identified in the administrative appeal or application for judicial review as disputed by the party filing such appeal or application.

Appealable event means an increase in the assessment of the license tax payable by a taxpayer, the denial of a refund, or the assessment of a license tax where none previously was assessed, arising out of the commissioner of the revenue's (i) examination of records, financial statements, books of account, or other information for the purpose of determining the correctness of an assessment; (ii) determination regarding the rate or classification applicable to the licensable business; (iii) assessment of a license tax when no return has been filed by the taxpayer; or (iv) denial of an application for correction of erroneous assessment attendant to the filing of an amended application for license.

Frivolous means a finding, based on specific facts, that the party asserting the appeal is unlikely to prevail upon the merits because the appeal is (i) not well grounded in fact; (ii) not warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; (iii) interposed for an improper purpose, such as to harass, to cause unnecessary delay in the payment of tax or a refund, or to create needless cost from the litigation; or (iv) otherwise frivolous.

Jeopardize by delay means a finding, based on specific facts, that a taxpayer desires to (i) depart quickly from the locality; (ii) remove his property therefrom; (iii) conceal himself or his property; or (iv) do any other act tending to prejudice, or to render wholly or partially ineffectual, proceedings to collect the tax for the period in question.

Tax commissioner means the Chief Executive Officer of the Virginia Department of Taxation, or his delegate.

(b)

Filing and contents of administrative appeal. Any person assessed with a license tax under this chapter as a result of an appealable event as defined in this section may file an administrative appeal of the assessment within one (1) year from the last day of the tax year for which such assessment is made, or within one (1) year from the date of the appealable event, whichever is later, with the commissioner of the revenue. The appeal must be filed in good faith and sufficiently identify the taxpayer, the tax periods covered by the challenged assessments, the amount in dispute, the remedy sought, each alleged error in the assessment, the grounds upon which the taxpayer relies, and any other facts relevant to the taxpayer's contention. The commissioner of the revenue may hold a conference with the taxpayer if requested by the taxpayer, or require submission of additional information and documents, an audit or further audit, or other evidence deemed necessary for a proper and equitable determination of the appeal. The assessment placed at issue in the appeal shall be deemed prima facie correct. The commissioner of the revenue shall undertake a full review of the taxpayer's claims and issue a written determination to the taxpayer setting forth the facts and arguments in support of his decision.

(c)

Notice of right of appeal and procedures. Every assessment made by a commissioner of the revenue pursuant to an appealable event shall include or be accompanied by a written explanation of the taxpayer's right to file an administrative appeal and the specific procedures to be followed (the name and address to which the appeal should be directed), an explanation of the required content of the appeal, and the deadline for filing the appeal.

(d)

Suspension of collection activity during appeal. Provided a timely and complete administrative appeal is filed, collection activity with respect to the amount in dispute shall be suspended until a final determination is issued by the commissioner of the revenue, unless the treasurer or other official responsible for the collection of such tax (i) determines that collection would be jeopardized by delay as defined in this section; (ii) is advised by the commissioner of the revenue that the taxpayer has not responded to a request for relevant information after a reasonable time; or (iii) is advised by the commissioner of the revenue that the appeal is frivolous as defined in this section. Interest shall accrue in accordance with the provisions of section 23-5(h), but no further penalty shall be imposed while collection action is suspended.

(e)

Procedure in event of nondecision. Any taxpayer whose administrative appeal to the commissioner of the revenue pursuant to the provisions of this section has been pending for more than one (1) year without the issuance of a final determination may, upon not less than thirty (30) days' written notice to the commissioner of the revenue or other assessing official, elect to treat the appeal as denied and appeal the assessment to the tax commissioner in accordance with the provisions of section 23-8.2. The tax commissioner shall not consider an appeal filed pursuant to the provisions of this subsection if he finds that the absence of a final determination on the part of the commissioner of the revenue or other assessing official was caused by the willful failure or refusal of the taxpayer to provide information requested and reasonably needed by the commissioner or other assessing official to make his determination.

(Ord. No. 6253-06, § 1)

(Ord. No. 6253-06, § 1)