[1]
Editor's Note: For Charter provisions as to
taxation and financial administration generally, see Charter §§ 27
to 31. For state law as to taxation generally, see Code of Virginia,
Title 58.1.
Taxes shall be levied and collected for the
general expenses and purposes of the City, including the interest
on the bonds of the City and a sinking fund for their redemption;
for opening and keeping in repair the streets, roads and alleys within
the City; for the support of the schools of the City; and for all
such other and further purposes authorized or permitted under state
law or the Charter of the City.
[Amended 8-4-2011 by Ord. No. 2011-04]
A.
Generally. There shall be levied and collected, for each calendar
year, a tax of such amount on every $100 of the assessed value of
the items set out in this section as shall be fixed annually by resolution
of the Council on the following:
[Amended 3-19-2015 by Ord. No. 2015-01]
(1)
Real estate. All real estate, tracts of land or lots with the improvements thereon not exempted from taxation by the laws of the state. (Certified solar equipment is a separate class, and is not included in the assessed value of real estate; see Article VIII below.)
(2)
Personal property. All tangible personal property, as defined in
§ 58.1-3500 of the Code of Virginia as amended, except for
household goods and personal effects listed in § 58.1-3504
of the Code of Virginia.
B.
Bank franchise tax.
(1)
BANK
NET CAPITAL
Definitions. For the purposes of this Subsection B, the following words have the meanings respectively ascribed to them by this subsection:
As defined in § 58.1-1201 of the Code of Virginia.
A bank's net capital computed pursuant to § 58.1-1205
of the Code of Virginia.
(2)
Imposition of tax.
(a)
Pursuant to the provisions of Chapter 12 of Title 58.1 of the
Code of Virginia, there is hereby imposed upon each bank located within
the boundaries of the City a tax on net capital equaling 80% of the
state rate of franchise tax set forth in § 58.1-1204 of
the Code of Virginia.
(b)
In the event that any bank located within the boundaries of
the City is not the principal office but is a branch extension or
affiliate of the principal office, the tax upon such branch shall
be apportioned as provided by § 58.1-1211 of the Code of
Virginia.
(3)
Filing of return and payment of tax.
(a)
On or after the first day of January of each year, but not later
than March 1 of any such year, all banks whose principal offices are
located within the City shall prepare and file with the Commissioner
of the Revenue a return as provided by § 58.1-1207 of the
Code of Virginia, in duplicate, which shall set forth the tax on net
capital computed pursuant to Chapter 12 of Title 58.1 of the Code
of Virginia. The Commissioner of the Revenue shall certify a copy
of such filing of the bank's return and schedule and shall forthwith
transmit such certified copy to the State Department of Taxation.
(b)
In the event that the principal office of a bank is located
outside the boundaries of the City and such bank has branch offices
located within the City, in addition to the filing requirements set
forth above, any bank conducting such branch business shall file with
the Commissioner of the Revenue or appropriate assessing officer of
the City a copy of the real estate deduction schedule, apportionment
and other items which are required by § 58.1-1212 of the
Code of Virginia.
(c)
Each bank, on or before the first day of June of each year,
shall pay into the Treasurer's office of the City all taxes imposed
pursuant to this subsection.
(4)
Penalty upon bank for failure to comply. Any bank which shall fail or neglect to comply with any provision of this Subsection B shall be fined not less than $100 or more than $500, which fine shall be recovered upon motion, after five days' notice, in the Circuit Court for the county. The motion shall be in the name of the commonwealth and shall be presented by the attorney for the commonwealth of this locality.
[Amended 3-19-2009 by Ord. No. 2009-03; 8-4-2011 by Ord. No.
2011-04]
A.
Real estate tax.
(1)
Assessment and levy date. Taxes on real estate shall be assessed
and levied on July 1 of each year.
(2)
Payment due date.
(a)
Pursuant to § 58.1-3916 of the Code of Virginia, as
amended, taxes levied on real estate assessed for taxation in the
City for the fiscal year commencing July 1, 1995, and subsequent years
shall be payable in two equal installments, the first installment
being due on December 5 and the second installment due on June 5 of
each year.
(b)
Any installment not paid on the date due shall be delinquent
and shall be subject to interest and penalties as otherwise set forth
in this section.
(3)
Delinquent taxes. Delinquent taxes on real estate shall be subject
to interest at the rate of 10% per annum, commencing on the first
day following the day such taxes are due, and shall be subject to
a penalty of 10% of the total tax assessable or due on such property
or the sum of $10, whichever shall be greater.
B.
Personal property and machinery and tools taxes.
(1)
Assessment and levy date. Taxes on personal property, including motor vehicles, and machinery and tools (certified solar equipment is a separate class; see Article VIII below) shall be assessed and levied on January 1 of each year.
(2)
Payment due date.
(a)
Pursuant to § 58.1-3916 of the Code of Virginia, as
amended, taxes levied on personal property assessed for taxation in
the City for the calendar year commencing January 1, 1996, and subsequent
years shall be payable in two installments, the first being due on
June 5 and the second installation due on December 5 of each year.
(b)
For the purposes of the fiscal year July 1, 1995, through June
30, 1996, only, taxes levied shall be for the six-month period commencing
July 1, 1995, and ending December 31, 1995, which period shall be
treated as a short year for accounting and collection purposes.
(3)
Delinquent taxes. Delinquent taxes on personal property shall be
subject to interest at the rate of 10% per annum, commencing on the
first day following the day such taxes are due, and shall be subject
to a penalty of 10% of the total tax assessable or due on such property
or the sum of $10, whichever shall be greater.
(4)
Annual return of taxable personal property (excluding motor vehicles).
The annual return of taxable personal property, excluding motor vehicles,
(business tangible property and machinery and tools) shall be filed
with the Commissioner of the Revenue not later than March 15 of each
year. This tax is not prorated.
(a)
Business tangible property.
[1]
All individuals, partnerships, corporations, or other entities
owning or using tangible personal property located in the City of
Lexington are required to file on forms prescribed by the Commissioner
of the Revenue an itemized list of all business tangible property
utilized in the business as of January 1 of the current year.
[2]
The types of business tangible property include, but are not
limited to, furniture, fixtures, tools, machinery, computers, signs,
leasehold improvements, leased equipment, hand tools, and any other
equipment. Computer application software is exempt.
[3]
The method of assessment is 25% of the total original cost for
non-fully depreciated property and 10% of the total original book
cost for fully depreciated property.
(b)
Machinery and tools.
[1]
All individuals, partnerships, corporations, or other entities
owning or using machinery and tools in the business of manufacturing,
water well drilling, processing or reprocessing, radio or television
broadcasting, dairy, dry-cleaning or laundry businesses located in
the City of Lexington are required to file on forms prescribed by
the Commissioner of the Revenue an itemized list of all business tangible
property utilized in the business as of January 1 of the current year.
[2]
Machinery and tools are limited to property used in manufacturing,
water well drilling, processing or reprocessing, radio or television
broadcasting, dairy, dry-cleaning or laundry business activity. Computer
application software and certified solar equipment are exempt.
[3]
The method of assessment is 25% of the total original cost for
non-fully depreciated property and 10% of the total original book
cost for fully depreciated property.
(5)
Registration of motor vehicles.
(a)
Any owner or lessee of a motor vehicle which acquires situs
in the City of Lexington shall register the vehicle with the Commissioner
of the Revenue within 60 days.
(b)
The annual assessment and taxation of motor vehicles for which
the owner, owners or lessee has previously registered his vehicle
with the Commissioner of the Revenue will be based on information
used the previous year.
[1]
An owner or lessee will advise the Commissioner of the Revenue
when any of the following occurs:
[a]
A change in the name or address of the person or
persons owning or leasing a taxable motor vehicle;
[b]
A change in the situs of the motor vehicle;
[c]
Any action which causes a motor vehicle to acquire
situs in the City of Lexington during the tax year and for which no
previous registration has been made with the Commissioner of the Revenue;
[d]
Any other change affecting the assessment or levy
of the personal property tax on motor vehicles which were previously
registered with the Commissioner of the Revenue.
[2]
Any owner or lessee of a motor vehicle who has a change in situs
or in status as enumerated under this subsection, or any of its paragraphs,
shall notify the Commissioner of the Revenue within 60 days of such
change.
C.
Proration of tangible personal property tax on motor vehicles.
(1)
The tangible personal property tax shall be levied upon motor vehicles
and trailers which acquire a situs within the City after January 1
of any tax year for the remaining portion of the tax year.
(2)
When any motor vehicle or trailer loses its situs in the City or
changes ownership after January 1 of the tax year, any tax assessed
on such vehicle shall be relieved, and any amount of the tax already
paid shall be refunded, on a prorated basis for the remaining portion
of the tax year, provided that the taxpayer makes an application for
such relief and refund within three years from the last day of the
tax year during which the taxable property lost situs or changed ownership.
No refund of less than $5 shall be issued to a taxpayer unless specifically
requested by such taxpayer. No refund shall be made if the taxable
property acquires a situs within the commonwealth in a nonprorating
locality. When any taxable property loses its situs within the City
and acquires a situs within another state, the taxpayer shall be entitled
to a proration of the tax. Any refund shall be made within 30 days
of the date such tax is relieved.
(3)
Whenever a motor vehicle or trailer with a situs in the City is sold or title is otherwise transferred to a new owner within the City, the new owner shall be subject to taxation on a prorated basis for the remaining portion of the tax year. The previous owner shall be eligible for relief and refund as provided by Subsection C(2) of this section.
(4)
For the purposes of this section, proration shall be determined on
a monthly basis. A period of more than 1/2 of a month shall be counted
as a full month and a period of less than 1/2 of a month shall not
be counted.
(5)
The City Treasurer may apply any refunds under this section to any
delinquent accounts owed by the taxpayer. In addition, a refund may
be credited, at the option of the taxpayer, against the tax due on
any other motor vehicle or trailer owned by the taxpayer during the
same tax year.
(6)
A motor vehicle or trailer is exempt from taxation under this section
for any tax year or portion thereof during which it was legally assessed
by another jurisdiction in the commonwealth and on which the tax has
been paid.
D.
Personal Property Tax Relief Act of 1998.
(1)
Purpose; definitions; relation to other ordinances.
(a)
The purpose of this Subsection D is to provide for the implementation of the changes to the Personal Property Tax Relief Act (PPTRA) effected by legislation adopted during the 2004 Special Session I and the 2005 Regular Session of the General Assembly of Virginia.
(2)
Method of computing and reflecting tax relief.
(a)
For tax years commencing in 2006, the City adopts the provisions
of Item 503E of the 2005 Appropriations Act, providing for the computation
of tax relief as a specific dollar amount to be offset against the
total taxes that would otherwise be due but for PPTRA and the reporting
of such specific dollar relief on the tax bill.
(b)
The Council shall, by resolution, set the percentage of tax
relief at such a level that it is anticipated fully to exhaust PPTRA
relief funds provided to the City by the commonwealth.
(c)
Personal property tax bills shall set forth on their face the
specific dollar amount of relief credited with respect to each qualifying
vehicle, together with an explanation of the general manner in which
relief is allocated.
(3)
Allocation of relief among taxpayers.
(a)
Allocation of PPTRA relief shall be provided in accordance with
the general provisions of this section, as implemented by the specific
provisions of the City's annual budget relating to PPTRA relief.
(b)
Relief with respect to qualifying vehicles shall be provided
at a percentage, annually fixed and applied to the first $20,000 in
value of each such qualifying vehicle, that is estimated fully to
use all available state PPTRA relief. The percentage shall be established
annually as a part of the adopted budget for the City.
(4)
Transitional provisions.
(a)
Pursuant to authority conferred in Item 503D of the 2005 Appropriations
Act, the City Treasurer is authorized to issue a supplemental personal
property tax bill, in the amount of 100% of tax due without regard
to any former entitlement to state PPTRA relief, plus applicable penalties
and interest, to any taxpayer whose taxes with respect to a qualifying
vehicle for tax year 2005 or any prior tax year remain unpaid on September
1, 2006, or such date as state funds for reimbursement of the state
share of such bill have become unavailable, whichever earlier occurs.
(b)
Penalty and interest with respect to bills issued pursuant to Subsection D(4)(a) of this section shall be computed on the entire amount of tax owed. Interest shall be computed at the rate of 10% per annum, commencing on the first day following the day such taxes are due, and shall be subject to a penalty of 10% of the total tax assessable or due on such property or the sum of $10, whichever shall be greater.
A.
Exemption authorized. Real estate tax exemption or
deferral is provided for qualified property owners who are not less
than 65 years of age or are permanently and totally disabled as defined
herein and are eligible according to the terms of this section. Persons
qualifying for exemption or deferral are deemed to be bearing an extraordinary
real estate tax burden in relation to their income and financial worth.
B.
Administration of exemption. The exemption or deferral
shall be administered by the Commissioner of the Revenue according
to the general provisions contained in this section. The Commissioner
of the Revenue is hereby authorized and empowered to prescribe, adopt,
promulgate and enforce rules and regulations in conformity with the
general provisions of this section, including the requirements of
answers under oath, as may be reasonably necessary to determine qualifications
for exemption or deferral as specified by this section. The Commissioner
of the Revenue may require the production of certified income tax
returns and appraisal reports to establish income or financial worth.
C.
Requirements for exemption or deferral. Exemption
or deferral shall be granted to persons subject to the following provisions:
(1)
Title to the property for which exemption or deferral
is claimed is or will be held or partially held on July 1 of the taxable
year by the person or persons claiming the exemption.
(2)
The head of the household occupying the dwelling and
owning title or partial title thereto is or will be 65 years or older
or permanently or totally disabled on July 1 of the taxable year.
Such dwelling must be occupied as the sole dwelling of the person
not less than 65 years of age or the person who is permanently and
totally disabled. The fact that persons otherwise qualified for tax
exemption or deferral are residing in hospitals, nursing homes, convalescent
homes or other facilities for physical or mental care for extended
periods of time shall not be construed to mean that the real estate
for which tax exemption or deferral is sought does not continue to
be sole dwelling of such persons during such extended periods of other
residence so long as such real estate is not used by or leased to
others for consideration.
(3)
The total combined gross income during the immediately
preceding calendar year from all sources of the owners of the dwelling
living therein and of the owners' relative(s) living in the dwelling
shall not exceed $30,000, provided that the first $6,000 of income
of each relative, other than the spouse, of the owner who is living
in the dwelling shall not be included in such total.
[Amended 3-19-2009 by Ord. No. 2009-03]
(4)
The net combined financial worth, including equitable
interests, as of December 31 of the immediately preceding calendar
year of the owners, and of the spouse of any owner, excluding the
value of the dwelling and the land, not exceeding one acre, upon which
it is situated, shall not exceed $70,000. Excluded from the computation
for determining net worth shall be the actuarial value of any nonconvertible
annuity from which any member of the household received benefits.
[Amended 3-19-2009 by Ord. No. 2009-03]
D.
Claiming exemption.
(1)
Annually and not later than December 5 of any tax
year, the person claiming an exemption or deferral must file a real
estate tax exemption or deferral application with the Commissioner
of the Revenue. The Commissioner of the Revenue may accept late filing
by first-time applicants and may accept late filing in cases deemed
to be a hardship where the applicant is unable by the deadline date
to furnish the information required by the Commissioner to establish
eligibility or the applicant was unable with good cause to make application
prior to the deadline.
(2)
The application shall set forth, in a manner prescribed
by the Commissioner of the Revenue, the location, assessed value and
tax on the property and the names of the related persons occupying
the dwelling for which exemption is claimed, their combined gross
income and the combined net worth of the owners and the spouse of
any owner.
(3)
If, after audit and investigation, the Commissioner
of the Revenue determines that the person is qualified for exemption
or deferral, the Commissioner of the Revenue shall issue to the person
a certificate which shall show the amount of the exemption or deferral
from the claimant's real estate tax liability.
(4)
Changes in respect to income, financial worth, ownership
of property or other factors occurring during the taxable year for
which the application is filed and having the effect of exceeding
or violating the limitations and conditions provided herein shall
nullify any exemption for the then current taxable year and the taxable
year immediately following.
(5)
"Permanently and totally disabled" shall mean unable
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment or deformity which can
be expected to result in death or can be expected to last for the
duration of such person's life. The application for exemption or deferral
shall have attached thereto a certification by the Social Security
Administration, the Veterans Administration or the Railroad Retirement
Board or, if the applicant is not eligible for certification by any
of these agencies, a sworn affidavit by two medical doctors, licensed
to practice medicine in the commonwealth, to the effect that such
person is permanently and totally disabled. The affidavit of at least
one of such doctors shall be based upon a physical examination of
such person by such doctor. The affidavit of one of such doctors may
be based upon medical information contained in the records of the
Civil Service Commission which is relevant to the standards for determining
permanent and total disability.
E.
Amount of exemption or deferral.
(1)
The person qualifying for and claiming exemption or
deferral shall elect either the exempt or deferral plan, which election
shall be final at the time application for exemption or deferral is
made, and shall be relieved of that portion of the real estate tax
levied on the qualifying dwelling and land in the amount calculated
in accordance with the following schedule if exemption is elected:
|
Income
|
Net Worth
|
Percentage
| |
|---|---|---|---|
|
$0 to $12,000
|
$0 to $70,000
|
80%
| |
|
$12,001 to $18,000
|
$0 to $70,000
|
60%
| |
|
$18,001 to $24,000
|
$0 to $70,000
|
40%
| |
|
$24,001 to $30,000
|
$0 to $70,000
|
20%
|
(2)
If the deferral plan is elected, payment of the entire
real estate tax is deferred for the tax year the applicant qualifies
and shall be paid, without penalty or interest, by the vendor upon
sale of the dwelling or from the estate of the decedent within one
year after the death of the last owner thereof who qualifies for tax
deferral under this section. Such deferred real estate taxes shall
constitute a lien upon the real estate as if they had been assessed
without regard to the deferral permitted by this section, provided
that such liens shall, to the extent that they exceed in the aggregate
10% of the price for which such real estate may be sold, be inferior
to all other liens of record.
F.
Forfeiture. Failure to pay the difference between
the exemption under the exemption plan and the amount of taxes levied
on the property for which the exemption is issued by the due date
as otherwise provided in this Code shall constitute a forfeiture of
the exemption.
G.
Penalties; effective date.
(1)
Any person who shall falsely claim the exemption provided
for in this section shall pay to the Treasurer 110% of such exemption.
(2)
Any person who knowingly makes a false application for exemption or deferral, or who knowingly fails to notify the Commissioner of the Revenue of a change of condition which would nullify the exemption or deferral as set forth in Subsection D(4) above, shall be guilty of a misdemeanor, and in addition to any other penalty provided herein, any person convicted of falsely claiming such exemption or deferral or failing to give notification of a change of condition shall be punished as provided in Chapter 1, § 1-6 of this Code.
(3)
The effective date of this section shall be July 1,
1994.
A.
Assessment of new building substantially completed;
extension of time for paying assessment. All new buildings substantially
completed or fit for use, occupancy and enjoyment prior to May 1 of
the fiscal year of completion shall be assessed when so completed
or fit for use, occupancy and enjoyment, and the Commissioner of the
Revenue of the City shall enter in the books the fair market value
of such building; provided, however, that no such partial assessment
shall become effective until information as to the date and amount
of such assessment is recorded in the office of the official authorized
to collect taxes on real property and is made available for public
inspection. The tax on such new building for that year shall be computed
according to the ratio which the portion of the fiscal year such building
is substantially completed or fit for use, occupancy and enjoyment
bears to the entire year.
B.
Repairs and additions. Any building and enclosure,
as aforesaid, which may have been increased in value to $100 or upwards,
by repairs or additions thereto, shall be assessed in the same manner
as if they were new.
The governing body shall provide for the abatement
of levies on buildings which are razed, destroyed or damaged by a
fortuitous happening beyond the control of the owner, provided that
no such abatement shall be allowed if the damage to such building
shall impair the value thereof by less than $500, and provided further
that no such abatement shall be allowed in the case of damage to any
such building if such damage shall be repaired during the same calendar
year in which it occurred. The tax on such razed, destroyed or damaged
building shall be computed according to the ratio which the portion
of the year such building was fit for use, occupancy and enjoyment
bears to the entire year. Application for such abatement shall be
made by or on behalf of the owner of such building within the calendar
year in which such building was razed or destroyed or in which such
damage was sustained.
When from natural decay or other causes any
building and enclosure as aforesaid which have been assessed shall
be either wholly destroyed or reduced in value below $100, the Commissioner
of the Revenue shall deduct from the charge against the owner the
value at which such building and enclosure may have been assessed,
and if the value of the building has been impaired by violence to
the extent of $100 and upwards, the Commissioner shall assess the
building in its present condition and reduce the charge for the same
to the amount so assessed.
A.
In accordance with the provisions of § 58.1-3400
of the Code of Virginia, there is imposed a service charge upon the
owners of all real estate within the City which is exempted under
Subsection A1, except property owned by the commonwealth, and Subsections
A3, A4 and A7 of § 58.1-3606 of such Code, and such selections
of the Code of Virginia, except buildings with land they actually
occupy, together with the additional adjacent land reasonably necessary
for the convenient use of any such building located within the City:
(1)
Lawfully owned and held by churches or religious bodies
and wholly and exclusively used for religious worship or for the residence
of the minister, or any church or religious body, or for use as a
religious convent, nunnery, monastery, cloister or abbey; or
(2)
Used or operated exclusively for private, educational
or charitable purposes and not for profit, other than faculty and
staff housing of any such educational institution.
B.
Such service charge shall be based on the assessed
value of the real estate and the amount which the City shall have
expended in the year preceding the year such charge is assessed for
the purpose of furnishing police and fire protection, for the collection
and disposal of refuse and the cost of public school education in
the case of faculty and staff housing of an educational institution,
excluding any amount received from federal or state grants specifically
designated for such purposes. The expenditures for services not provided
for certain real estate shall not be applicable to the calculations
of the service charge for such real estate, nor shall such expenditures
be applicable when a service is currently funded by another service
charge. The service charge shall not be applicable to public roadways
or property held for future construction of such roadways. The service
charge, which shall not exceed 20% of the real estate tax rate or
50% in the case of faculty and staff housing of an educational institution,
shall be fixed by dividing such expenditures by the assessed fair
market value of all of the real estate within the City, except real
estate owned by the United States Government or any of its instrumentalities,
expressed in hundred dollars, including nontaxable property, provided
that there first be listed and published by the Commissioner of the
Revenue or other assessing officer in the land books of the City,
in the same manner as taxable real estate, all the exempt real estate.
In the valuation of exempt real estate for purposes of this section,
artistic and historical significance shall not be taken into account.
C.
Any person aggrieved by the assessment or the valuation
of real estate for purposes of this section may apply to the Commissioner
of the Revenue or other assessing officer for correction thereof.
If the Commissioner or other officer finds that the assessment or
valuation is erroneous, he (or she) shall correct the same. Any person
aggrieved by the decision of such officer may appeal to the Circuit
Court of the county, as provided in § 58.1-3984 of the Code
of Virginia.
A.
Real estate tax.
(1)
Notwithstanding any other provision of law, special
or general, or any other section of this Code to the contrary, taxes
will be levied and imposed on real estate assessable for taxation
by the City on a fiscal year basis of July 1 to June 30.
(2)
The assessment whenever made of all taxable real estate
shall become effective for tax purposes on the first day of July of
each year.
B.
Personal property tax.
(1)
Notwithstanding any other provision of law, special
or general, or any other section of this Code to the contrary, taxes
will be levied and imposed on personal property assessable for taxation
by the City on a calendar year basis of January 1 to December 31.
(2)
The assessment whenever made of all taxable personal
property shall become effective for tax purposes on the first day
of January of each year.
C.
Changes in rate.
(1)
The rate of any such levy authorized by this section
may be changed during the fiscal year, and a proposed increase in
the levy shall be published in a newspaper having general circulation
in the City at least 15 days before the increase is made, and the
citizens of the City of Lexington shall be given an opportunity to
appear before, and be heard by, the City Council on the subject of
such increase.
(2)
This section shall not operate to change the tax year
of any public service company whose property is assessed by the State
Corporation Commission.
