§ 40-220.2. Tax on machinery and tools; levied; amount; idle machinery and tools.

(a)

For the calendar year beginning on January 1, 2000, and ending December 31, 2000, and for the calendar year beginning January 1, 2001 and for each and every calendar year thereafter, unless changed, there shall be levied a tax on machinery and tools used in manufacturing, mining, processing or reprocessing, radio or television broadcasting, dairy, drycleaning or laundry business by any person, firm or corporation in the City of Newport News, Virginia, as follows:

(1)

For the period beginning January 1, 2000, and ending on June 30, 2000, the tax rate shall be three dollars ($3.00) on every one hundred dollars ($100.00) of the assessed value thereof, prorated for the six-month period.

(2)

For the period beginning July 1, 2000, and ending on December 31, 2000, the tax rate shall be three dollars and fifty cents ($3.50) on every one hundred dollars ($100.00) of the assessed value thereof.

(3)

For the calendar year beginning on January 1, 2001, and ending on December 31, 2001, and for each and every calendar year thereafter, unless changed, the tax rate shall be three dollars and fifty cents ($3.50) on every one hundred dollars ($100.00) of the assessed value thereof.

(4)

For the calendar year beginning on January 1, 2008, and ending on December 31, 2008, and for each and every calendar year thereafter, unless changed, the tax rate shall be three dollars and seventy-five cents ($3.75) on every one hundred dollars ($100.00).

(b)

Idle machinery and tools as herein defined are not subject to the tax levied in subsection (a) above, but are taxable by the Commonwealth as capital under Section 58.1-1101 of the Code of Virginia, 1950, as amended.

(1)

"Idle machinery and tools" means machinery and tools that (i)(a) have been discontinued in use continuously for at least one year prior to any tax day or (b) on and after January 1, 2007, and have been specifically identified in writing by the taxpayer to the commissioner of the revenue, on or before April 1 of such year, as machinery and tools that the taxpayer intends to withdraw from service not later than the next succeeding tax day and (ii) are not in use on the tax day and no reasonable prospect exists that such machinery and tools will be returned to use during the tax year.

(2)

In the event that any machinery and tools taken out of use subsequent to January 1, 2007, are returned to use after having been previously identified or previously classified as idle machinery and tools pursuant to clause (i)(b) of subsection (b)(1), the taxpayer shall identify such machinery and tools to the commissioner of the revenue in writing on or before the next return due date without extension, and such machinery and tools shall be subject to tax in accordance with the procedures provided in Section 58.1-3903 of the Code of Virginia, 1950, as amended, in the same manner as if such machinery and tools had been in use on the tax day of the year in which such return to use occurs. Any interest otherwise payable pursuant to applicable law or ordinance shall apply to taxes imposed pursuant to this subsection and paid after the due date, without regard to the fault of the taxpayer or lack thereof. Notwithstanding the provisions of Section 58.1-3903 of the Code of Virginia, 1950, as amended, if the taxpayer has provided timely written notice of return to use in accordance with the provisions of this subsection, no penalty shall be levied with respect to any tax liability arising as a result of the return to use of machinery and tools classified as idle and actually idle prior to such return to use.

(Ord. No. 3885-89; Ord. No. 5459-00; Ord. No. 6369-07, § 1)

(Ord. No. 3885-89; Ord. No. 5459-00; Ord. No. 6369-07, § 1)