AGENDA DATE: 8/5/2015
TITLE:
Title
Ordinance to Establish Separate Classification of Personal Property for Business Personal Property with Original Cost of Less Than $250
BODY
SUBJECT/PROPOSAL/REQUEST: Ordinance to create a separate class of personal property for taxation purposes
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Foley, Letteri, Davis, Herrick, Burrell
PRESENTER (S): Betty Burrell
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: Virginia Code ? 58.1-3506 defines different classes of personal property that are subject to local taxation. Though Albemarle County has consistently taxed all personal property at the same rate, the Virginia Code allows localities to tax specifically-enabled classes of property at different rates.
Although 2013 County tax forms instructed users to exclude the reporting of business personal property (BPP) items with an original cost of less than $250, no provision of the Virginia Code specifically authorized that practice at the time. This exclusion was corrected on the 2014 BPP tax returns, and business owners were advised of the change. Subsequently, a request was made regarding the taxation and reporting of business personal property with original cost of less than $250.
As part of the Board's legislative agenda, the 2015 General Assembly adopted House Bill 2098, which amended Virginia Code ? 58.1-3506 to create a separate class of BPP for items with an original cost of less than $250, effective July 1, 2015. This newly-enacted legislation also enables localities to allow these items to be reported as an aggregated estimate, rather than an itemized list. Therefore, a locality creating a special classification for this type of property could do so to reduce either (a) the tax reporting requirements and/or (b) the tax rate for these items.
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