YELLOW CAB of Winchester Call: 540.678. TAXI(8294) Fax: 540.242.40

8/26/2011

Ms Burkholder,

I'm writing persuant to 58.1-3983.1 of the VA code concerning the accurate valuation of "all" Yellow Cab of Winchster's taxicabs for business personal property consideration and valuation.

I have spoken with you on at least 5 specific occasions and expressed my concern for the valuations whereby your Offi e has ammended '1' valuation however has erroneously applied it ba k again(concerning the 2003 Ford Crown Victoria). No other adjust ents have been made to date and I have received no further communication from your office regarding this matter.

Consider this letter as our "Administrative. Appgal" to obtain an accurate reflection and valuation of our taxicabls for the previous '2' tax year filings per the conversations over the past two tax years in your office.

If you have any further questions or concerns, feel free to email me at randy@yellowcabwinchester.com .

This letter will be followed up with more specific data in the next two days.

Best Regards,

Randy Cadmus

cc: City Treasurer

Winch Aster-, commissioner of the revenue

Rouss City Hall 15 North Cameron Street Winchester, VA 22601 Email: commrevenue ci.winchester.va.us

Telephone: (540) 667-1815 FAX: (540) 667-8937 TDD: (540) 722-0782

Website: www.winchesterva.gov

Mr. Randy Cadmus Exectrans & Courier Service LLC 427 N Cameron St Winchester VA 22601

September 20, 2011

RE: Appeal of Personal Property Assessment

Dear Mr. Cadmus,

This letter is in regards to your appeal of personal property assessment on taxicabs for Yellow Cab of Winchester. Your information refers to specific vehicles in Account 71603, Exectrans & Courier Service LLC, and thus those are the ones I have reviewed.

Your appeal packet did not include any information on the following items, and thus we have made no changes to these assessments:

• Item 1, 1997 Chevrolet Venture van, license # 1020480 • Item 14, 1998 Ford Crown Victoria sedan, license # 10200011

For items 2 through 7, items 11 through 13, and item 15, I have reviewed the data presented. For most of these, you included copies of bill of sale for your purchase, the title and/or registration and a summary of your opinion of condition. You included neither any photographs nor any valid third-party assessments, which gave me very little data from which to work. Moreover, you did not include any indication of what you considered to be the alleged error of each assessment. Some of the vehicles you described as being in very poor condition, yet stated as also having current inspection and functioning as a taxicab. A vehicle that you consider a viable business asset in which to safely and comfortably transport passengers, and upon which your company's reputation is based, must certainly be of significant value.

Despite the paucity of evidence, I have carefully reviewed youri l' appeal and made some adjustments to assessed values. The enclosed report shows the updated tax year 2010 assessments, the tax year we are currently billing, for items in this account. At present, only a few 2011 records are on file, due to the design of the City's software, but I have made some adjustments as also shown. You did not present any evidence which justified changes to tax year 2009 assessments.

As you cited familiarity with Code of Virginia §58.1-3983.1, you may realize that in addition to appealing to my office, a taxpayer also has the right to file an appeal with the Tax Commissioner. Such an appeal must be filed with 90 days of the date of determination of the Commissioner of the Revenue, and must include a copy of the written determination of the

"To provide a safe, vibrant, sustainable community while striving to constantly improve the quality of life for our citizens and economic partners."

Commissioner of the Revenue, Page 2 of 2

Commissioner of the Revenue, along with a statement of the facts and grounds upon which the taxpayer relies.

You are welcome to contact me with any questions regarding this determination. My office looks forward to serving you and sends best wishes for continued success with your business.

Kind regards,

Ann T. Burkholder Commissioner of the Revenue

to Winch Aster-) treasurer

R. MARK GARBER Treasurer

City of 14 =baiter, Virginia Treasurer

Rouss City Hall, P.O. Box 263 Winchester, Virginia 22604 ,

540-667-1815 Fax 540-662-2672

E-mail: mgarbertreas@ci.winchester.va.us PAMELA T. HAINES Chief Deputy Treasurer

October 21, 2011

Exectrans Dba Yellow Cab 427 N. Cameron St. Winchester, VA 22601

Att. R Cadmus, Jr.

I have enclosed the total tax and license fee due for your business i vehicles. I spoke with Ms. Burkholder yesterday and she informed me that any adjustments needed are complete.

We had a conversation regarding the penalty and interest. Please contact me upon receipt of this letter to discuss the balance.

Please do not disregard this letter to avoid collection actions.

Thank you,

R. ar arber Treasurer

To PROVIDE A SAFE, VIBRANT, SUSTAINABLE COMMUNITY WHILE Swim To CONSTANTLY IMPROVE

THE QUALITY OF LIFE FOR OUR CITLEENS AND ECONOMIC PA TNERS

Page 1 of 1

Randy Cadmus

From To: Sent: Subject:

Hi Mark,

"Randy Cadmus" <randy@yellowcabwinchester.com > <mgatertreas@ci.winchester.va .US> Monday, November 21, 2011 2:17 AM re; Exectrans and Courier Service LLC

I want to touch base with you regarding the appeal that we filed with the Com ssioner of Revenue. I know that I left you voice mail relative to paying the bill in protest however, after seeking council, we have decided to further our options in the appeal process. This email is intended to inform you that we will appeal her decision to the next level.

Ms Burkerhoider's response to our first line of appeal was not acceptable and it did not make any sense to me, my mother or our counsel and since there seems to be an inherent flaw in the assessment tool that Ms Burkholder uses to maintain values of the property, it is evident that we will have to file laboreous paperwork as well as prove with evidence and argue with Ms Burkholder - what the definition of Fair Market Value is... according to the law - EVERY SINGLE YEAR for each item of value. This creates an undue hardship on our organization and s little use of assessment systems which are designed to maintain values instead of throw them away year and start over.

This is my 12th year in this business and my 3rd in Wnchester VA. Her methcidology is very obscure, undocumented and it appears that she changes her requirements at Will.

With that in mind, we have chosen to file an appeal with the State Tax Co, mmi my understanding that all appeals will stay any collection activity. Please adv' your office while this appeal is ongoing and until it is potentially adjudicated.

Best Regards. Randy Cadmus

ner regarding this issue. It is as to what my responsiblity is to

Oak you for your patience.

2/2/2012

November 22", 2011

SENT kr /44-

L(/7 tr

YELLOW CAB OF WINCHESTER S-7711-7-- ‘/ (4) (540)6784294 ire- I we-m-4 427 N Cameron Street- Winchester VA 22601

14*1VL

1/2-g /

COX._ Commonwealth of VA State Tax Commissioner Office of Customer Services Post Office Box 1115 Richmond, VA 23218-1115

COMPANY: EXECTRANS AND COURIER SERVICE LLC DBA YELLOW OF WINCHESTER RE: UNLAWFUL PERSONAL PROPERTY TAX VALUATION METHPDOLQGY TAXID: 61-1526556

Dear Mr. Commissioner,

per VA CODE § 58.1-3983.1. regarding the personal property tax assessment of the Commissioner o Aevenue in Winchester VA.

Initially, an appeal was filed with Ms Burkholder, the commissioner of revenue, concerning her valuation methodology for taxicabs. We believe that her methods are tmlawfill, undocumented and are creating an undue hardship on our business.

"Automobiles, except those described in subdivision 7, 8 and phis subsection and in subdivision A 8 of 58.1-3504, which "shall" be valued by me of a recognized pricing guide..."

I am writing to formally make an appeal to the State Tax Commission

1 1 Specifically, the commissioner of revenue has misinterpreted 58.1-350 I3) where it states:

Category "8" is the item "Taxicab". We have had meetings with the co she has verbally stated that she valuates "Taxicabs" using the same m which contradicts the State Code because that category "3" spedific valuation methods specified in "3". I I il

Moreover in 58.1-3503(B), the commission of revenue does not 4nd categories per conversations with her where she stated that Subsctio authority to apply Category "3" of Subsection(A) as her valuation me

We disagree with her understanding of 58.1-3504. Ms Burkholder would get our property reevaluated is if we applied the exoneration p as high mileage, condition of the vehicle and other factors that reduce question. 1

I Our position is that, Category "3" removes the Category called "Taxic purposes. This is logical and reasonable based on several factors,. (1.) normal wear and tear. Taxicabs undergo a transformation including p and bolted on the sides and tops of the vehicle that leave dam' to it. el

sioner on this issue where odology as Category "3" excludes "8" from the

d the difference between, 5 of 58.1-3503 gives her the Od for Taxicabs.

that the only way that we ciples in the pricing guide such e value of the vehicles in

which is "8" for valuation dcabs wear and tear is not

, stickers, hardware screwed .) The 'branding' of Taxicab

11 "! from the DMV on the registration/title is , synonymous to salvage wh 'trying to resell the car. It affects its value and what people will pay for the vehicle per the Comt*nwealth of VA definition for "fair market value". (3.) Our commissioner only exonerates o n 1501 riles and over Some of our taxicabs have 400k on them that continues to affect its value inia norm fair market. (4.) Taxicabs are rarely resold and normally scrapped when removed from service.

The Code specifically mandates in 58.1-3503(B) that:

"The commissioner of revenue shall make available to'taxpay , on request a reasonable discription of his valuation methods.

Ii Our Commissioner has refused to give us a document stating her vabilon method and has told me that she uses the pricing guide to valuate Taxicabs. I

In February 2010, The City Treasurer confiscated our vehicles after we lad verbally made an appeal to Ms Burkholder. She met with us on at least 5 occasions in her office ad discussed the code section above. We protest her decisions on this matter because rights have prejudiced due to the commissioner's willful ignorance of the statute cited in this letter and a the assessments on our personal property according to 58.1-3503 which are invalid because our rights being prejudiced.

I would appreciate your time in reviewing the personal property' code 58.1-3503 and all relevant citations that relate to it. Additionally ? we Commissioner to document her methodology for evaluating the fair adjust our previous three years of Personal property Tax based op the which aligns with the category "Taxicab" and is reasonable in the con section as well as the Commonwealth's legal definition of "fair park

Please feel free to contact us at 540.678.8294 x28.

Best Regards,

Laura Fabrizio Exectrans and Courier Service LLC

cc: Ann Burkholder — Commissioner of Revenue

lative to Taxicabs located in asking that you force the et value for a Taxicab and valuation methodology of the above cited code

value".

LIS > Code of Virginia > 58.1-3503

http://legl.state.va.us/cgi-bin/legp504.exe70004-cod+58.1-3503

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§ 58.1-3503. General classification of tangible personal property.

A. Tangible personal property is classified for valuation purposes according to the following separate categories which are not to be considered separate classes for rate purposes:

1. Farm animals, except as exempted under § 58.1-3505.

2. Farm machinery, except as exempted under § 58.1-3505.

3. Automobiles, except those described in subdivisions 7, 8 and 9 of this subsection and in subdivision A 8 of § 58.1-3504, which shall be valued by means of a recognized pricing guide or if the model and year of the individual automobile are not listed in the recognized pricing guide, the individual vehicle may be valued on the basis of percentage or percentages of original cost. In using a recognized pricing guide, the commissioner shall use either of the following two methods. The commissioner may use all applicable adjustments in such guide to determine the value of each individual automobile, or alternatively, if the commissioner does not utilize all applicable adjustments in valuing each automobile, he shall use the base value specified in such guide whit may be either average retail, wholesale, or loan value, so long as uniformly applied within classifications of propeiity. If the model and year of the individual automobile are not listed in the recognized pricing guide, the taxpayer my present to the commissioner 1 proof of the original cost, and the basis of the tax for purposes of the motor vehicle sales and use tax as described in § 58.1-2405 shall constitute proof of original cost. If such percentage or percentages . of original cost do not accurately reflect fair market value, or if the taxpayer does not supply proof of original cost, then the commissioner may select another method which establishes fair market value.

4. Trucks of less than two tons, which may be valued by means of a recognized pri nig guide or, if the model and year of the individual truck are not listed in the recognized pricing guide, qn the b

of a percentage or percentages

of original cost.

5. Trucks and other vehicles, as defined in § 46.2-100, except those described in subdivisions 4, and 6 through 10 of this subsection, which shall be valued by means of either a recognized pricing guide using the lowest value specified in such guide or a percentage or percentages of original cost.

6. Manufactured homes, as defined in § 36-85.3, which may be valued on the basis f square footage of living space.

7. Antique motor vehicles, as defined in § 46.2-100, which may be used fog general

sportation purposes as provided in subsection C of § 46.2-730.

8. Taxicabs.

9. Motor vehicles with specially designed equipment for use by the handicapped, wilich shall not be valued in relation to their initial cost, but by determining their actual market value itioffered i sale on the open market.

10. Motorcycles, all-terrain vehicles and off-road motorcycles as defined in § 46.2-100, campers and other recreational vehicles, which shall be valued by means of a recognized pricing guide or a percentage or percentages of original cost.

11. Boats weighing under five tons and boat trailers, which shall be valued by meansiof a recognized pricing guide or a percentage or percentages of original cost.

12. Boats or watercraft weighing five tons or more, which shall be valued by means of a percentage or percentages of original cost.

>- 13. Aircraft, which shall be valued by means of a recognized pricing guide l or a perceptage or percentages of original cost.

14. Household goods and personal effects, except as exempted under § 58,1-3504.

, 15. Tangible personal property used in a research and development business, which shall be valued by means of a percentage or percentages of original cost.

16. Programmable computer equipment and peripherals used in business s4hich shallibe valued by means of a 1 percentage or percentages of original cost to the taxpayer, or by such other metho 4 may reasonably be expected

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to determine the actual fair market value.

17. All tangible personal property employed in a trade or business other than that described in subdivisions 1 through 16 of this subsection, which shall be valued by means of a percentage or percentagis of original cost.

18. All other tangible personal property.

B. Methods of valuing property may differ among the separate categories, so long as each method used is uniform within each category, is consistent with requirements of this section and may reasonably be expected to determine actual fair market value as determined by the commissioner of revenue or other assessing official; however, assessment ratios shall only be used with the concurrence of the local governing bo4. A commissioner of revenue shall upon request take into account the condition of the property. The term "condiiion of the property" includes, but is not limited to, technological obsolescence of property where technological obsolqscence is an appropriate factor for valuing such property. The commissioner of revenue shall e ke available t ers on re uest a reasonable escription of his valuation methods. Such commissioner, or other assessing office4 or his authorized agent, w en

using a recogn pncing guise as prove e or in t is section, may automatica ye en • e rt

i (Code 1950, §§ 58-829, 58-829.3, 58-829.5; 1960, c. 418; 1970, cc. 325, 655; 1974, c. 445; 1975, cc. 47, 541; 1976, c. 567; 1978, cc. 155, 178, 656, 843; 1979, c. 576; 1980, c. 412; 1981, c. 236; 1981,:c. 633; 1984, cc. 675, 689; 1985, c. 105; 1987, c. 568; 1991, cc. 253, 255; 1994, c. 827; 1996, c. 529; 1 997, cc.' i92, 250, 433, 457; 2006, c. 896.)

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pricing information is stored in a computer.

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58.1-3961. Assessment not invalid unless rights prejudiced by error.

No assessment of property, other than real property, shall be invalid because of an error, omission or irregularity by the commissioner of the revenue or other assessing officer in charging such prope in the personal property or other tax book, unless it is shown by the person contesting any such assessment th such error, omission or irregularity has operated to prejudice his rights.

(1995, c. 239.)

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LIS > Code of Virginia > 58.1-3983.1 http://legl.state.va.us/cgi-bin/legp504.exe?000+cod+58.1-3983.1

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§ 58.1-3983.1. Appeals and rulings of local taxes.

A. Definitions. For purposes of this section:

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

"Frivolous" means a finding, based upon 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.

"Jeopardized by delay" means a finding, based upon specific facts, that a taxpayer designs to (i) depart quickly from the locality, (ii) remove his property therefrom, (iii) conceal himself or his property therein, 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.

"Local business tax" means machinery and tools tax, business tangible personal property tax (including, without ;. limitation, computer equipment), merchant's capital tax, and a consumer utility tax ivhere the amount in dispute exceeds $2,500 other than the tax collected on mobile telecommunication service a is defined in § 58.1-3812.

"Local mobile property tax" means the tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers.

"Taxpayer" includes a business required to collect a local consumer utility mx to the extent that the business is charged or assessed with such tax.

B. Administrative appeal to commissioner of the revenue or other assessing official.

1. Any person assessed with any local mobile property tax or local business tax as defined in this section may appeal such assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of such assessment, whichever is later, to the commissioner of AO revenue or other assessing official. 1

2. The appeal shall be filed in good faith and sufficiently identify the taxpayer, the lax period covered by the challenged assessment, 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 contehtion.

I i 3. The commissioner of the revenue or other assessing official may hold a confered e with the taxpayer if requested

by the taxpayer, or require submission of additional information and docuMents, an audit or further audits, or other evidence deemed necessary for a proper and equitable determination of the applicalion.

4. The assessment shall be deemed prima facie correct.

5. The commissioner of the revenue or other assessing official shall undertake a full review of the taxpayer's claims and issue a written determination to the taxpayer setting forth the facts and argtuneis in support of his decision within 90 days after such appeal is filed. Such determination shall be accoMpanied l i a written explanation of the taxpayer's right to file an administrative appeal of the determination to the Tax Commissioner pursuant to subsection D.

6. Any taxpayer whose administrative appeal to the commissioner of the revenue o other assessing official pursuant It to this subsection has been pending for more than one year without the issuance of ;final determination may, upon not less than 30 days' written notice to the commissioner of the revenue or other assessing official, elect to treat the application as denied and appeal the assessment to the Tax Commissioner in accordance with the provisions of subsection D. The Tax Commissioner shall not consider an appeal filed pursuant to he provisions of this subsection if he finds that the absence of a final determination on the part of the commissions of the revenue or other assessing official was caused by the willful failure or refusal of the taxpayer to provide info tion requested and reasonably needed by the commissioner of the revenue or other assessing official to Make his ermination.

C. Suspension of collection activity pending administrative appeal to commissionerIcf the revenue or other assessing

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official. Provided a timely and complete appeal is filed pursuant to subsection B, c ection activity shall be suspended by the treasurer or other official responsible for the collection of such tauntil a final determination is issued by the commissioner of the revenue or other assessing official, unless the treasurer or other collection official (i) determines that collection would be jeopardized by delay as defmed in this sectkin; or (ii) is advised by the commissioner of the revenue or other assessing official that the taxpayer has not re: nded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the pr; ions of subdivision A 2 e of § 58.1-3703.1, but no further penalty shall be imposed while collection action is suspended.

I ' D. Administrative appeal to Tax Commissioner.

1. Any person whose administrative appeal to the commissioner of the revenue or other assessing official pursuant to subsection B has been denied in whole or in part may appeal the determination of the commissioner of the revenue or other assessing official by filing an appeal with the Tax Commissioner and servinga copy of the appeal upon the commissioner of the revenue or other assessing official within 90 days of the date o:"the determination of the commissioner of the revenue or other assessing official. The appeal shall include a C iopy of the written determination of the commissioner of the revenue or other assessing official that is challenged, together with a statement of the facts and grounds upon which the taxpayer relies. I

2. The Tax Commissioner shall determine whether he has jurisdiction to hear the appeal within 30 days of receipt of the taxpayer's appeal. I

3. If the Tax Commissioner determines that he has jurisdiction, he shall prOvide the other assessing official with an opportunity tc respond to the appeal and permit the other assessing official to participate in the proceedings. The Tax Commissioner sh taxpayer within 90 days of receipt of the taxpayer's appeal, unless the taxpayer an or other assessing official are notified that a longer period will be required. Such lo exceed 60 days, and the Tax Commissioner shall notify the affected partieS of the r period of time. If the Tax Commissioner is unable to issue a determination*ithin the failure of an affected party to supply the Tax Commissioner with necessary inf shall certify this fact in writing prior to the expiration of the extension periOd. The his determination within 60 days of receipt of such necessary information.

I ; 4. The appeal shall be treated as an application pursuant to § 58.1-1821, and the Taat commissioner may issue an order correcting such assessment of such property pursuant to § 58.1-1822,; if the ayer has met the burden of proof provided in § 58.1-3987.

5. The Tax Commissioner shall not make a determination regarding the valuation or the method of valuation of property subject to any local tax other than a local business tax.

Commissioner, unless the treasurer or other collection official (i) determines that c delay as defined in this section; or (ii) is advised by the commissioner or other asse sing official that the taxpayer has not responded to a request for relevant information after a reasonable timel. Intere shall accrue in accordance with the provisions of subdivision A 2 e of § 58.1-3703.1, but no further penalty( shall be posed while collection action is suspended. The requirement that collection activity be suspended shall cease unles an appeal pursuant to subsection D is filed and served on the necessary parties within 30 days of the service ( of the nonce of intent to file such appeal.

mmissioner of the revenue or onunissioner of the revenue or

II issue a determination to the the commissioner of the revenue

r period of time shall not ason necessitating the longer 60-day extension period due to

tion, the Tax Commissioner x Commissioner shall then issue

E. Suspension of collection activity during administrative appeal to Tax COrnmissioter. On receipt of a notice of intent to file an appeal to the Tax Commissioner under subsection D, the treasurer ctriother official responsible for the collection of such tax shall further suspend collection activity until a final dete ation is issued by the Tax

ction would be jeopardized by

F. Implementation of determination of Tax Commissioner. Promptly upon receipt o Commissioner, the commissioner of the revenue or other local assessing official sha calculate the amount of tax owed by or refund due to the taxpayer consistent with determination and shall provide that information to the taxpayer and to the treasure collection in accordance with the provisions of this subsection.

1. If the determination of the Tax Commissioner sets forth a specific amount of tax revenue or other assessing official shall certify this amount to the treasures or other collection, and the treasurer or other official responsible for collection shall issue a amount due, together with interest accrued, within 30 days of the date of the Commissioner.

2. If the determination of the Tax Commissioner sets forth a specific amount of re revenue or other assessing official shall certity this amount to the treasurer or other

a final determination of the Tax take those steps necessary to Tax Commissioner's

or other official responsible for

due, the commissioner of the official responsible for

pOl to the taxpayer for such - ation of the Tax i

'd due, the commissioner of the

Official responsible for

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collection, and the treasurer or other official responsible for collection shall issue a payment to the taxpayer for such amount due, together with interest accrued, within 30 days of the date of the determination of the Tax Commissioner.

3. If the determination of the Tax Commissioner does not set forth a specific amount of tax due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a am or revised assessment that will result in the determination of a tax due that has not previously been paid in ful ' the commissioner of the revenue rtal or other assessing official shall promptly commence the steps necessary to unde such new or revised assessment, and provide the same to the taxpayer within 60 days of the date of the etermination of the Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional lilformation requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of the revenue or other assessing official shall certify the new assessment to the treasurer or other official responsible for collection, and the treasurer or other official responsible for collection shall issue a bill to the taxpayer for the amount due, together with interest accrued, within 30 days of the date of the new assessment.

I 4. If the determination of the Tax Commissioner does not set forth a specific amouatof refund due, or otherwise requires the commissioner of the revenue or other assessing official to undertake a new or revised assessment that will result in the determination of a refund of taxes previously paid, the commissioner of the revenue or other assessing official shall promptly commence the steps necessary to undertake such new or revised assessment, and provide the same to the taxpayer within 60 days of the date of the determination ofithe Tax Commissioner, or within 60 days after receipt from the taxpayer of any additional information requested or reasonably required under the determination of the Tax Commissioner, whichever is later. The commissioner of th Ip'Irevenue or other assessing official shall certify the new assessment to the treasurer or other official responsibl' for collection, and the treasurer 1 or other official responsible for collection shall issue a refund to the taxpayer for th amount of tax due, together with interest accrued, within 30 days of the date of the new assessment.

G. Judicial review of determination of Tax Commissioner. Following the issuance °f p. final determination of the Tax Commissioner pursuant to subsection D, the taxpayer or commissioner of the revenue or other assessing official may apply to the appropriate circuit court for judicial review of the determination, or an 'part thereof, pursuant to § 58.1-3984. In any such proceeding for judicial review of a determination of the Tax ommissioner, the burden shall be on the party challenging the determination of the Tax Commissioner, or any p thereof, to show that the ruling of the Tax Commissioner is erroneous with respect to the part challenged. Neither lie Tax Commissioner nor the Department of Taxation shall be made a party to an application to correct an assessment merely because the Tax Commissioner has ruled on it.

i H. Suspension of payment of disputed amount of tax due upon taxpayer's notice of 'intent to initiate judicial review.

1

1. On receipt of a notice of intent to file an application for judicial review, pursuan)? § 58.1-3984, of a determination of the Tax Commissioner pursuant to subsection D, and upon payment of the amount of the tax that is not in dispute together with any penalty and interest then due with respect to such undisputed portion of the tax, the treasurer or other collection official shall further suspend collection activity while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that (i) the taxpayer's application for judicial review is frivolous, as defined in this section; (ii) collection iivpuld be jeopardized by delay, as defined in this section; or (iii) suspension of collection would cause substaatial eco Omic hardship to the locality. For Ict purposes of determining whether substantial economic hardship to the locality wou arise from a suspension of collection activity, the court shall consider the cumulative effect of then-pending teals filed within the locality by

th different taxpayers that allege common claims or theories of relief.

2. Upon a determination that the appeal is frivolous, that collection may be jeopard d by delay, or that suspension of collection would result in substantial economic hardship to the locality, the co may require the taxpayer to pay the amount in dispute or a portion thereof, or to provide surety for payment of the ariaount in dispute in a form acceptable to the court.

1

1 3. No suspension of collection activity shall be required if the application for judicial review fails to identify with particularity the amount in dispute.

i 4. The requirement that collection activity be suspended shall cease unless an appliTation for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days otthe service of the notice of intent to file such application. j

1 '

5. The suspension of collection activity authorized by this subdivision shall not be applicable to any appeal of a local business tax or local mobile property tax that is initiated by the direct filing of an a ion pursuant to § 58.1-3984

without prior exhaustion of the appeals provided by subsections B and D. 1

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I. Suspension of payment of disputed amount of refund due upon locality's notice of intent to initiate judicial review.

1. Payment of any refund determined to be due pursuant to the determination of the Tax Commissioner shall be suspended if the locality assessing the tax serves upon the taxpayer, within 60 days , the date of the determination of the Tax Commissioner, a notice of intent to file an application for judicial revieof the Tax Commissioner's

volof

determination pursuant to § 58.1-3984 and pays the amount of the refund not in dispute, including tax and accrued interest. Payment of such refund shall remain suspended while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that the locality's application for judicial review is frivolous, as defined in this section.

2. No suspension of refund activity shall be permitted if the locality's application for judicial review fails to identify with particularity the amount in dispute.

3. The requirement that the obligation to make a refund be suspended shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.

J. Rulings and advisory opinions.

1. Written rulings from commissioner of the revenue or other assessing official. Atli taxpayer or authorized representative of a taxpayer may request a written ruling regarding the application ?f a local mobile property tax or a local business tax to a specific situation from the commissioner of the revenue or other assessing official. Any taxpayer requesting such a ruling shall provide all facts relevant to the situation and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. Any misrepresentation or change in the applicable law or the factual situation as presented in the ruling request shall invalidate any such ruling issued. A written ruling may be revoked or amended prospectively if (i) there is a change in the law, a court decision, or the guidelines issued by the Department of Taxation upon which the ruling was based or (ii) the commissioner of the revenue or other assessing official notifies the taxpayer of a change in the policy or interpretation upon which the ruling was based. However, any taxpayer who acts on a written ruling which later becomes invalid shall be deemed to have acted in good faith during the period in which such ruling was in effect.

2. Advisory opinions of the Tax Commissioner. The Tax Commissioner shill have the authority to issue advisory written opinions in specific cases as requested to interpret a local business tax and matters related to the administration thereof when an assessment of that tax is subject to appeal to the Tax Commissioner under this chapter. Opinions issued pursuant to this section shall not be applicable as an interpretation of any other tax law.

K. Record-keeping and audits. Every person who is assessable with a local mobile property tax or a local business tax shall keep sufficient records to enable the commissioner of the revenue or other assessing official to verify the correctness of the tax paid for the taxable years assessable and to enable the commissioner of the revenue or other assessing official to ascertain the correct amount of tax assessable for each of those years. All such records, books of accounts and other information shall be open to inspection and examination by the commissioner of the revenue or other assessing official in order to allow him to establish whether the tax is due within this jurisdiction. The commissioner of the revenue or other assessing official shall provide the taxpayer with the option to conduct the audit in the taxpayer's local business office, if the records are maintained there. In the event the records are maintained outside this jurisdiction, copies of the appropriate books and records shall be sent to the commissioner's or assessor's office upon demand.

(1999, cc. 202, 470; 2002, c. 525; 2003, c. 196; 2004, cc. 527, 534; 2005, c.1927; 2005 c. 611.)

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