Legislation # 07-0438 Enactment Number none
Type Ordinance - Coded Effective Date none
Introduction Date 8/15/2007
Title AN ORDINANCE TO AMEND AND RE-ENACT THE CODE OF THE CITY OF HAMPTON, CHAPTER 37 ENTITLED “TAXATION” IN ITS ENTIRETY, INCLUDING BUT NOT LIMITED TO, ADDING NEW SECTIONS 37-151.1, 37-155.01, 37-211, 37-278.1, 37-337.1 AND 37-344.1, RENUMBERING SECTION 37-212 AND REPEALING SECTIONS 37-149.1 AND 37-279.
 
Legislation History 07-0438
DateNotice Of ActionDescription
9/12/2007 Approved items 1 through 9 on the consent agenda.
8/15/2007 Adopted on First Reading
7/31/2007 Received By Clerk's Office
 
View Attachments 07-0438
FileTypeSizeDescription
Redline Final - Chapter 37 - Taxation - changes to entire chapter - DRAFT #6 - July 30 2007.doc Other 547K Redline Version
 
Legislation Text 07-0438

 

City of Hampton, Virginia

Ordinance - Coded

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 07-0438

 

Enactment Number: -

 

AN ORDINANCE TO AMEND AND RE-ENACT THE CODE OF THE CITY OF HAMPTON, CHAPTER 37 ENTITLED TAXATION IN ITS ENTIRETY, INCLUDING BUT NOT LIMITED TO, ADDING NEW SECTIONS 37-151.1, 37-155.01, 37-211, 37-278.1, 37-337.1 AND 37-344.1, RENUMBERING SECTION 37-212 AND REPEALING SECTIONS 37-149.1 AND 37-279.

 

 

Chapter 37

 

TAXATION*

__________

* Charter References: General authority of city as to taxation, 2.02a; collection of taxes, 6.17, 6.18.

Cross References: Tax levy ordinances not affected by Code or ordinance adopting Code, 1-6(3); fee for passing bad check to city in payment of taxes, 2-135; dog license tax, 5-53 et seq.; license taxes generally, Ch. 18.1; license tax on vehicles, 21-40 et seq.

State Law References: Taxation, Code of Virginia, title 58.1; local taxes, Code of Virginia, 58.1-3000 et seq.; general authority of city relative to taxes and assessments, Code of Virginia, 15.2-1104.

__________

 

Article I. In General

Sec. 37-1. Fees imposed to cover additional costs in collection of delinquent taxes or other charges.

Secs. 37-237-3. Reserved.

 

Article IA. Property Exempt from Taxation by Designation and Classification

Sec. 37-4. Authorized.

Sec. 37-5. Exemption by designation.

Sec. 37-6. Exemption by classification.

Sec. 37-7. Exemptions strictly construed.

Sec. 37-8. Validity of previously granted exemptions.

Sec. 37-9. Triennial review of exemptions.

Sec. 37-10. Effective dates.

Secs. 37-1137-15. Reserved

 

Article II. Real Estate Taxes

 

Division 1. Generally

Sec. 37-16. Establishment, composition and general powers and duties of assessment department and office of assessor.

Sec. 37-17. Annual assessment and extension of tax.

Sec. 37-17.1. Assessment of new buildings substantially completed or fit for use and occupancy; abatement of levies on buildings razed, destroyed or damaged.

Sec. 37-17.2. Equalization of Assessments application to Assessor for hearing.

Sec. 37-18. Board of review of assessments--Established; composition; appointment, qualifications and terms of members.

Sec. 37-19. Same--Officers and employees; compensation of members.

Sec. 37-20. Same--General powers.

Sec. 37-21. Same--Meetings; rules of procedure.

Sec. 37-22. Same--Right of appeal to board.

Sec. 37-23. Same--Appeal from decisions of board.

Sec. 37-24. Assessments by state corporation commission.

Sec. 37-25. When tax due and payable.

Sec. 37-26. Tax bills.

Sec. 37-27. When taxes to be received without penalty and interest.

Sec. 37-28. Penalty on delinquencies.

Sec. 37-29. Interest on delinquencies.

Sec. 37-30. How payments credited.

Sec. 37-31. Surplus proceeds paid to the City from delinquent real estate tax sales

Secs. 37-32--37-40. Reserved.

 

Division 2. Assessment of Land Devoted to Agricultural or Horticultural Uses

Sec. 37-41. Findings of fact.

Sec. 37-42. Application for classification and assessment generally.

Sec. 37-43. Determination by assessor.

Sec. 37-44. Land book entries; tax to be extended from use value.

Sec. 37-45. Roll-back tax when use changes to nonqualifying use.

Sec. 37-46. Misstatements in application filed under division.

Sec. 37-47. Applicability of general tax law.

Secs. 37-4837-60. Reserved.

 

Division 3. Exemption for Property Utilizing Solar Energy Equipment, Facilities or Devices

Sec. 37-61. Definitions.

Sec. 37-62. Equipment, facilities and devices constitute separate class of property.

Sec. 37-63. Authorized.

Sec. 37-64. Administration.

Sec. 37-65. Eligibility requirements.

Sec. 37-66. Application.

Sec. 37-67. Determination of, and presumption as to, value of equipment, facilities or devices.

Sec. 37-68. Amount of exemption.

Sec. 37-69. Effective date of exemption.

Sec. 37-70. Appeal from decisions under division.

Secs. 37-71--37-80. Reserved.

 

Division 4. Exemption for Rehabilitated Residential Real Estate

Sec. 37-81. Authorized.

Sec. 37-82. Building permits required.

Sec. 37-83. Application.

Sec. 37-84. Verification and certification of rehabilitation.

Sec. 37-85. Amount of exemption.

Sec. 37-86. Duration of exemption.

Sec. 37-87. Reduced value not to be listed in land book.

Secs. 37-88--37-95. Reserved.

 

Division 5. Exemption for Rehabilitated Commercial or Industrial Real Estate

Sec. 37-96. Authorized.

Sec. 37-97. Building permits required.

Sec. 37-98. Application.

Sec. 37-99. Verification and certification of rehabilitation.

Sec. 37-100. Amount of exemption.

Sec. 37-101. Duration of exemption.

Sec. 37-102. Reduced value not to be listed in land book.

Secs. 37-103--37-115. Reserved.

 

Division 6. Exemption or Deferral for Elderly and Disabled Persons

Sec. 37-116. Definitions.

Sec. 37-117. Authorized.

Sec. 37-118. Administration; general authority of assessor.

Sec. 37-119. General prerequisites to grant; effect of transfer of dwelling as result of eminent domain and of residency in hospital, nursing home, etc.

Sec. 37-120. Mobile home as real estate for purposes of division.

Sec. 37-121. Applicant's affidavit and certificate of disability.

Sec. 37-122. Certification to city treasurer; adjustment of tax records, etc.

Sec. 37-123. Amount of exemption.

Sec. 37-124. Amount of deferral; payment of deferred taxes.

Sec. 37-125. Nullification upon change in status.

Sec. 37-126. False claims.

Sec. 37-127. When amount of exemption/deferral/freeze exceeds the estimated amount by which revenue is reduced due to the program.

Sec. 37-128. Notice of local real estate tax exemption, deferral, or freeze program for the elderly and handicapped.

Secs. 37-129--37-135. Reserved.

 

Division 7. Special Assessments for Local Improvements

Sec. 37-136. Special assessments; projects permitted; petition.

Sec. 37-137. Projects; procedures; notices.

Sec. 37-138. Payment over ten years; interest.

Sec. 37-139. Postponement of payment.

Sec. 37-140. Elizabeth Lake Estates Service District.

 

Article III. Personal Property Taxes

 

Division 1. Generally

Sec. 37-141. Exemption of certain household goods and personal effects.

Sec. 37-142. Filing of return required.

Sec. 37-143. Filing of depreciation schedules required.

Sec. 37-144. Failure to file return or depreciation schedule generally; false statements therein.

Sec. 37-145. Penalty for late filing of return.

Sec. 37-146. Assessment upon failure to file return.

Sec. 37-147. Assessments by state corporation commission.

Sec. 37-148. When tax due and payable.

Sec. 37-149. Tax bills.

Sec. 37-149.1. Repealed.

Sec. 37-150. When taxes to be received without penalty and interest.

Sec. 37-151. Penalty on delinquencies.

Sec. 37-151.1 Omitted taxes and levies.

Sec. 37-152. Interest on delinquencies.

Sec. 37-153. How payments credited.

Sec. 37-154. Special provisions relating to tax on motor vehicles, trailers and boats.

Sec. 37-155. Certain operators of marinas or boat storage places to file lists of owners of boats.

Sec. 37-155.01. Apartment house, office building, shopping center, trailer camp, trailer court, marina, or airport owners or operators to file lists of tenants.

Sec. 37-155.1. Personal property tax relief; amount of reimbursement.

 

Division 2. Other Classification of Tangible Personal Property

 

A. Motor Vehicles Specially Equipped to Provide Transportation for Physically Handicapped Individuals

 

Sec. 37-156. Definitions.

Sec. 37-157. Authorized.

Sec. 37-158. Application.

Sec. 37-159. General prerequisites to grant; filing process.

Sec. 37-160. Duration.

 

B. Motor Vehicles Owned and Regularly Used by Disabled Veterans

 

Sec. 37-161. Definitions.

Sec. 37-162. Authorized.

Sec. 37-163. Qualification.

Secs. 37-16437-165 Reserved.

 

Article IV. Retail Sales Tax

Sec. 37-166. Levied; rate; etc.

Sec. 37-167. Exemption for fuel oil.

Secs. 37-168--37-180. Reserved.

 

Article V. Bank Franchise Tax

Sec. 37-181. "Bank" defined.

Sec. 37-182. Levied; amount.

Sec. 37-183. Bank's return and report.

Sec. 37-184. Payment.

Sec. 37-185. Failure or neglect of bank to comply with article.

Secs. 37-186--37-200. Reserved.

 

 

Article VI. Utility Services

 

Division 1. Tax on Purchasers of Electric and Natural Gas Utility Services

Sec. 37-201. Definitions.

Sec. 37-202. Electric consumer utility tax levied; amount.

Sec. 37-203. Natural gas consumer utility tax levied; amount.

Sec. 37-204. Exemptions.

Sec. 37-205. Duty of service provider to bill, collect and remit tax.

Sec. 37-206. Service provider records.

Sec. 37-207. Computation tax for bills not on monthly basis.

Sec. 37-208. Duties of city treasurer.

Sec. 37-209. Powers of the commissioner of the revenue.

Sec. 37-210. Penalties

Sec. 37-211. Penalty for late remittance of fraudulent return.

Secs. 37-21237-213. Reserved.

 

Division 2. Tax on Purchasers of Local Exchange Telephone Service

Sec. 37-214. Definitions.

Sec. 37-215. Levied, amount.

Sec. 37-216. Applicability generally.

Sec. 37-217. Exemptions.

Sec. 37-218. Computation when seller collects charges periodically.

Sec. 37-219. Duty of seller to collect, report and remit.

Sec. 37-220. Seller's records.

Sec. 37-221. Duties of city treasurer.

Sec. 37-222. Powers of the commissioner of the revenue.

Sec. 37-223. Failure of purchaser to pay; violations of division by seller.

Sec. 37-224. Additional tax on telephone service to establish and maintain an E-911 emergency telephone system.

Sec. 37-225. Public rights-of-way use fee.

 

Article VII. Tax on Food and Beverages Sold by Food Establishments

Sec. 37-226. Definitions.

Sec. 37-227. Levied; amount.

Sec. 37-228. Exemptions; limits on application.

Sec. 37-228.1. Gratuities and service charges.

Sec. 37-229. Collection.

Sec. 37-230. Reports and remittances generally.

Sec. 37-231. Preservation of records.

Sec. 37-231.1. Requirement of bond or letter of credit; authority of the commissioner.

Sec. 37-232. Duty of collector going out of business.

Sec. 37-233. Penalty for late remittance or false return.

Sec. 37-234. Procedure upon failure to collect, report, etc.

Sec. 37-235. Food establishment not to advertise that it will pay or absorb tax.

Sec. 37-236. Penalty for violation of article.

Secs. 37-237--37-250. Reserved.

 

Article VIII. Transient Lodging Tax

Sec. 37-251. Definitions.

Sec. 37-252. Levied; amount.

Sec. 37-253. Exemptions.

Sec. 37-254. Collection.

Sec. 37-255. Reports and remittances generally.

Sec. 37-256. Collector's records.

Sec. 37-257. Duty of collector going out of business.

Sec. 37-258. Penalty for late remittance or false return.

Sec. 37-259. Procedure upon failure to collect, report, etc.

Sec. 37-260. Violations of article.

Secs. 37-261--37-275. Reserved.

 

Article IX. Admissions Tax

Sec. 37-276. Definitions.

Sec. 37-277. Levied; amount.

Sec. 37-278. Exception if admission charge is thirty-four cents or less.

Sec. 37-278.1. Exemptions.

Sec. 37-279. Repealed.

Sec. 37-280. Collection.

Sec. 37-281. Reports and remittances generally.

Sec. 37-282. Reports, remittances and deposits by temporary or transitory places of amusement or entertainment.

Sec. 37-283. Collector's records.

Sec. 37-284. Duty of collector going out of business.

Sec. 37-285. Penalty for late remittance or false return.

Sec. 37-286. Procedure upon failure to collect, report, etc.

Sec. 37-287. Violations of article.

Secs. 37-288--37-300. Reserved.

 

Article X. Cigarette Tax

Sec. 37-301. Definitions.

Sec. 37-302. Levied; amount.

Sec. 37-303. Method of payment.

Sec. 37-304. Preparation and sale of stamps generally.

Sec. 37-305. General duties of dealers and sellers with respect to stamps.

Sec. 37-306. Visibility of stamps or meter markings.

Sec. 37-307. Altering design of stamps.

Sec. 37-308. Refund for unused stamps or meter imprints.

Sec. 37-309. Seizure and sale of unstamped cigarettes.

Sec. 37-310. Dealers' and sellers' records generally.

Sec. 37-311. Rules and regulations for enforcement and administration of article; examination of books, records, etc.

Sec. 37-312. Tax is in addition to other taxes.

Sec. 37-313. Violations of article--Generally.

Sec. 37-314. Same--Prohibited acts enumerated.

Sec. 37-315. Same--Presumption of violation by seller.

Secs. 37-316--37-330. Reserved.

 

Article XI. Recordation Tax

Sec. 37-331. Levied; amount; collection generally.

Sec. 37-332. Compensation of clerk of circuit court for collecting.

Secs. 37-333, 37-334. Reserved.

 

Article XII. Short-Term Rental Tax

Sec. 37-335. Levied; amount.

Sec. 37-336. Daily rental property; defined.

Sec. 37-337. Short-term rental business; defined.

Sec. 37-337.1. Short-term rental tax; defined.

Sec. 37-338. Taxation of rental property that is not daily rental property.

Sec. 37-339. Collection, return and remittance of tax.

Sec. 37-339.1. Preservation of records.

Sec. 37-340. Procedure upon failure to collect, report, or remit taxes.

Sec. 37-341. Penalty for late remittance or false return.

Sec. 37-342. Exclusions and exemptions.

Sec. 37-343. Renter's certificate of registration.

Sec. 37-344. Criminal penalties for violation of article.

Sec. 37-344.1. Penalties for violation of article.

 

Article XIII. Tax on Purchasers of Cable Television Service

Sec. 37-345. Levied; amount.

Sec. 37-346. Applicability generally.

Sec. 37-347. Exemptions.

Sec. 37-348. Duty of seller to collect and remit; seller's reports.

Sec. 37-349. Seller's records.

Sec. 37-350. Violation of article by seller.

Sec. 37-351. General duty of treasurer to collect.

Sec. 37-352. Assessment and collection of delinquencies.

Sec. 37-353. Penalty for late remittance or false return.

Secs. 37-354--37-399. Reserved.

 

Article XIV. Local Technology Zones

Sec. 37-400. Purpose and intent.

Sec. 37-401. Administration.

Sec. 37-402. Definitions.

Sec. 37-403. Boundaries of technology zones.

Sec. 37-404. Qualifications.

Sec. 37-405. Technology zone incentive package.

Sec. 37-406. Certification procedure.

Sec. 37-407. Nonwaiver.

Sec. 37-408. Restrictions.

Sec. 37-409. Confidentiality.

Sec. 37-410. Zoning ordinance not affected.

Sec. 37-411. Education and promotion.

Sec. 37-412. Effective dates.

 

ARTICLE I.

 

IN GENERAL

 

Sec. 37-1. Fees imposed to cover additional costs in collection of delinquent taxes or other charges.

 

(a) There is hereby imposed upon each person chargeable with delinquent taxes or other delinquent charges, a fee to cover administrative costs which shall be in addition to all penalties and interest and shall not exceed thirty dollars ($30.00) for taxes or other charges collected subsequent to thirty (30) or more days after notice of delinquent taxes or charges pursuant to Section 58.1-3919 but prior to the taking of any judgment with respect to such delinquent taxes or charges, and thirty-five dollars ($35.00) for taxes or other charges collected subsequent to judgment. If the collection activity is to collect on a nuisance abatement lien, the fee for administrative costs shall be one hundred fifty dollars ($150.00) or twenty-five (25) percent of the cost, whichever is less; however, in no event shall the fee be less than twenty-five dollars ($25.00).

 

(b) There is also imposed upon each person chargeable with delinquent taxes or other delinquent charges, reasonable attorney's or collection agency's fees which shall not exceed twenty (20) percent of the taxes or other charges so collected.

(Ord. No. 1136, 5-3-96; Ord. No. 1220, 7-15-98; Ord. No. 1360, 12-3-03)

State Law References: Authority of city to adopt ordinance, Code of Virginia, 58.1-3916, 58.1-3958.

 

Secs. 37-2--37-3. Reserved.

 

ARTICLE IA.

 

PROPERTY EXEMPT FROM TAXATION BY DESIGNATION AND CLASSIFICATION

Sec. 37-4. Authorized.

 

(a) Pursuant to subsection 6(a)(6) of Article X of the Constitution of Virginia and to Section 58.1-3651 of the Code of Virginia, the city by ordinance may by designation or classification exempt from real or personal property taxes, or both, the real or personal property, or both, owned by a non-profit organization that uses such property for religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes. The ordinance shall state the specific use on which the exemption is based, and the continuance of the exemption shall be contingent on the continued use of the property in accordance with the purpose for which the organization is classified or designated.

 

(b) No exemption shall be provided to any organization that has any rule, regulation, policy, or practice that unlawfully discriminates on the basis of religious conviction, race, color, sex, or national origin.

 

(c) The city assessor is delegated the authority to promulgate guidelines to assist staff in the administration of this division. The guidelines and any amendments shall be approved by the city manager and submitted to council for information.

(Ord. No. 1388, 12-8-04)

 

Sec. 37-5. Exemption by designation.

 

(a) Application. Any organization seeking an exemption by designation pursuant to the provisions of this division shall file an application with the city assessor on such forms as the assessor shall prescribe. A committee consisting of the city assessor and a representative from the office of the commissioner of revenue, the office of the treasurer, the office of the city manager and the office of the city attorney, shall review all applications and shall make a written recommendation to the city manager, who shall make a recommendation to council.

 

(b) Public hearing requirement. An ordinance exempting property by designation pursuant to section 37-4 shall be adopted only after holding a public hearing on the application at which citizens shall have the opportunity to be heard. The city shall publish notice of a hearing once in a newspaper of general circulation in the City of Hampton. The notice shall include the assessed value of all real and tangible personal property for which an exemption is requested, as well as the property taxes assessed against such property. The public hearing shall not be held until at least five (5) days after the notice is published in the newspaper. Prior to processing the application, the city shall collect a deposit of three hundred fifty dollars ($350.00) to cover a portion of the cost of publication of the notice from the requesting organization. The deposit shall be returned to the requesting organization in full if the organization withdraws its request in writing prior to the submission of the notice to the newspaper for publication. Should the cost of the publication of notice exceed the deposit, the requesting organization shall pay the balance to the city. Should the cost of the notice be less than the deposit, the balance shall be remitted to the organization. The effective date of any ordinance adopted pursuant to this section shall be governed by section 37-10.

 

(c) Criteria for exemption by designation. Before adopting any such ordinance exempting property by designation, the city council shall consider the following questions:

 

(1) Whether the organization is exempt from taxation pursuant to Section 501(c) of the Internal Revenue Code of 1954.

 

(2) Whether a current annual alcoholic beverage license for serving of alcoholic beverages has been issued by the Virginia Alcoholic Beverage Control Board to such organization for use on such property;

 

(3) Whether any director, officer, or employee of the organization is paid compensation in excess of a reasonable allowance for salaries or other compensation for personal services which such director, officer, or employee actually renders;

 

(4) Whether any part of the net earnings of such organization inures to the benefit of any individual, and whether any significant portion of the service provided by such organization is generated by funds received from donations, contributions, or local, state or federal grants. As used in this subsection, donations shall include the providing of personal services or the contribution of in-kind or other material services;

 

(5) Whether the organization provides services for the common good of the public;

 

(6) Whether a substantial part of the activities of the organization involves carrying on propaganda or otherwise attempting to influence legislation and whether the organization participates in, or intervenes in, any political campaign on behalf of any candidate for public office;

 

(7) The revenue impact to the locality and its taxpayers of exempting the property; and

 

(8) Any other criteria, facts, and circumstances that the governing body deems pertinent to the adoption of such ordinance.

(Ord. No. 1388, 12-8-04)

 

Sec. 37-6. Exemption by classification.

 

(a) Any organization that claims exemption by classification pursuant to Article X, Section 6(a)(1) through (4) of the Virginia Constitution, or pursuant to Code of Virginia, 58.1-3606, or pursuant to Article 3 of Chapter 36 of Title 58.1 of the Code of Virginia (Code of Virginia, 58.1-3609 et seq.), or pursuant to any ordinance adopted in accordance with this section, shall submit a letter to the assessor describing the basis of its claim. The assessor and commissioner of the revenue or their designees shall review the request and jointly determine if the organization qualifies for a classification exemption.

 

(b) Following a review and recommendation by the committee established in section 37-5(c) and the city manager, council may by ordinance establish local classifications for common types of organizations that are not exempted directly by the self-executing provisions of Virginia Constitution Article X, Section 6(a)(1) through (4). A new classification shall only apply to property used by its owner for religious, charitable, patriotic, historical, benevolent, cultural or public park and playground purposes.

 

(c) Any ordinance exempting property by classification pursuant to section 37-4 and subsection (b) of this section shall be adopted only after holding a public hearing with respect thereto, at which citizens shall have an opportunity to be heard. The city shall publish notice of the hearing once in a newspaper of general circulation in the City of Hampton. The public hearing shall not be held until at least five (5) days after the notice of publication in the newspaper.

(Ord. No. 1388, 12-8-04)

 

Sec. 37-7. Exemptions strictly construed.

 

All exemptions of property from taxation created under this division shall be strictly construed in accordance with Article X, Section 6(f) of the Constitution of Virginia.

(Ord. No. 1388, 12-8-04)

 

Sec. 37-8. Validity of previously granted exemptions.

 

Nothing in Section 58.1-3651 of the Code of Virginia, or in this Division, or in any ordinance adopted pursuant to this Division, shall affect the validity of either a classification exemption or a designation exemption granted by the General Assembly, prior to January 1, 2003, pursuant to Article 2 (Section 58.1-3606 et seq.), Article 3 (Section 58.1-3609, et seq.), or Article 4 (Section 58.1-3650, et seq.) of Chapter 36 of Title 58.1 of the Code of Virginia. An exemption granted pursuant to Article 4 (Section 58.1-3650, et seq.) of Chapter 36 may be revoked in accordance with the provisions of Code of Virginia, 58.1-3605.

(Ord. No. 1388, 12-8-04)

 

Sec. 37-9. Triennial review of exemptions.

 

(a) Every organization except the Commonwealth, any political subdivision of the Commonwealth or the United States which owns real and personal property in the City of Hampton previously exempt pursuant to Chapter 36 of Title 58.1 of the Code of Virginia, shall be required to file triennially an application with the city assessor on such forms as the assessor shall prescribe as a requirement of retention of exempt status of the property.

 

(b) Every organization exempt pursuant to section 37-4 shall be required to file triennially following approval of its exemption, an application with the city assessor as a requirement of retention of exempt status of the property.

 

(c) The city assessor shall give each organization sixty (60) days notice of the due date of the application. If the organization certifies that the ownership and the use of the property are the same as when the exemption was initially granted, and the financial status of the organization is substantially the same, the city assessor and the commissioner of revenue may accept that certification as the application; however, the city assessor and the commissioner of revenue may require a more complete application including one (1) identical to the application required in section 37-5. The application shall be filed within the next sixty (60) days preceding the tax year for which such exemption or retention thereof is sought.

 

(d) Failure to timely file the required triennial application shall result in termination of the exemption.

 

(e) The commissioner of revenue and the city assessor or their designees shall review the applications, and provided the ownership and use of the property remains the same as when the exemption was initially approved, the exempt status shall continue.

(Ord. No. 1388, 12-8-04)

 

Sec. 37-10. Effective dates.

 

(a) The effective date of the exemption by designation for all proratable property such as real estate and vehicles shall be the first day of the month following the later of the payment to the city of the full cost of the publication of notice and the adoption by city council of the ordinance of exemption on second reading. The effective date of the exemption by designation for non-proratable property, such as certain tangible personal property shall be January 1st following the later of the payment to the city of the full cost of the publication of notice or the adoption by city council of the ordinance of exemption on second reading.

 

(b) The effective date of the exemption by classification for all proratable property such as real estate and vehicles shall be the first day of the month following the adoption by city council of the ordinance of exemption on second reading. The effective date of the exemption by classification for non-proratable property, such as tangible personal property, shall be January 1st following the adoption by city council of the ordinance of exemption on second reading.

 

(c) For any organization that filed an application for an exemption by designation prior to the adoption of Division 2A, council may provide that the ordinance establishing the exemption by designation takes effective on or after January 1, 2003.

 

(d) The effective date of an exemption by classification determined pursuant to section 37-6(a) shall be jointly determined by the city assessor and the commissioner of revenue.

(Ord. No. 1388, 12-8-04)

 

Secs. 37-1137-15. Reserved.

 

ARTICLE II.

 

REAL ESTATE TAXES*

__________

* Charter References: Authority of city to levy and collect ad valorem taxes on real estate, 2.02a.

__________

 

DIVISION 1.

 

GENERALLY

 

Sec. 37-16. Establishment, composition and general powers and duties of assessment department and office of assessor.

 

(a) There shall be a department for the assessment and equalization of assessment of real estate for taxation, which shall be known as the office of the assessor of real estate or the office. Such office shall consist of a department head known as the assessor who shall be appointed by the city manager and such other officers and employees as shall be assigned to such office. Within the budget adopted by city council, the city manager shall employ and assign to such office such personnel as is necessary for the efficient and proper operation of such office.

 

(b) It shall be the duty of the office established by this section to assess the value of all land and lots, together with the improvements thereon, in the city, and to that end, the office shall hear and give consideration to such complaints and equalize such assessments and shall, moreover, be charged with the special duty of increasing as well as decreasing assessments, whether specific complaint is made or not, if, in its judgment, the same is necessary to equalize and accomplish the end that the burden of taxation shall rest equally upon all citizens of the city.

 

(c) All duties imposed and all powers conferred by law on the commissioner of revenue with respect to the assessment and equalization of real estate for taxation, including, but not limited to, the preparation of the land book, shall be transferred to the office of the assessor of real estate.

 

(d) It shall be the duty of the office established by this section to compile and maintain an inventory of all real estate owned by the city at its fair market value.

(Ord. No. 389; Code 1964, 39-2--39-4, 39-6)

Charter References: Authority to establish above department, 6.06.

 

Sec. 37-17. Annual assessment and extension of tax.

 

All real estate, except public service corporation property, shall be assessed at its fair market value as of July first of each year, by the office of the assessor of real estate and taxes for each year on such real estate shall be extended on the basis of the last assessment made prior to such year, subject to such changes as may have been lawfully made. Public service corporation property shall continue to be assessed at its value as of January first, prior to such assessment date.

(Ord. No. 389; Ord. No. 639, 11-14-79; Code 1964, 39-5)

Charter References: Assessment of real estate for taxation, 6.06.

State Law References: Real estate assessments, Code of Virginia, 58.1-3200.

 

Sec. 37-17.1. Assessment of new buildings substantially completed or fit for use and occupancy; abatement of levies on buildings razed, destroyed or damaged.

 

All new buildings in the city substantially completed or fit for use and occupancy prior to May 1 of the fiscal year of completion shall be assessed when so completed or fit for use and occupancy, and the assessing officer shall enter into 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 the amount of such assessment is recorded in the office of the city treasurer and made available for public inspection. The tax on such new building for that fiscal year shall be the sum of (i) the tax upon the assessment of the completed building, computed according to the ratio which the portion of the fiscal year such building is substantially completed or fit for use and occupancy bears to the entire fiscal year, and (ii) the tax upon the assessment of such new building as it existed on July 1 of that fiscal year, computed according to the ratio which the portion of the fiscal year such building was not substantially completed or fit for use and occupancy bears to the entire fiscal year, and with respect to any assessment made pursuant hereto after March 1 of any fiscal year the ten (10) percent penalty for nonpayment for June 5 shall be extended to August 5 of the succeeding fiscal year and the interest for nonpayment starting on July 1 shall be extended to September 1 of such fiscal year.

 

The tax levies on buildings which are razed, destroyed or damaged by a fortuitous happening beyond the control of the owner shall be abated. No such abatement, however, shall be allowed if the destruction or damage to such building shall decrease the value thereof by less than five hundred dollars ($500.00). No such abatement shall be allowed unless the destruction or damage renders the building unfit for use and occupancy for thirty (30) days or more during the fiscal year. The tax on such razed, destroyed or damaged building shall be computed according to the ratio which the portion of the fiscal year such building was fit for use, occupancy and enjoyment bears to the entire fiscal year. Application for such abatement shall be made by or on behalf of the owner of the building within six (6) months of the date on which the building was razed, destroyed or damaged.

(Ord. No. 772, 6-13-84; Ord. No. 821, 5-14-86)

State Law References: Similar provisions, Code of Virginia, 58.1-3222, 58.1-3292.

 

Sec. 37-17.2. Equalization of Assessments application to Assessor for hearing.

 

Any property owner or lessee of real property in the city shall have the right to appeal any assessment thereof to the citys real estate assessor in writing at any time prior to June 30 of the year for which the assessment is made. If the appeal is filed by an agent of the owner or lessee, the agent shall submit a notarized statement from the owner or lessee authorizing the agent to file the appeal. The assessor may schedule specific dates for hearings on assessments or the assessor may grant a hearing by appointment. The assessor may authorize persons employed in the assessors office who are competent to do so to hold any hearing pursuant to this section, provided that the evidence presented or a summary thereof is transmitted to the assessor for action.

 

Sec. 37-18. Board of review of assessments--Established; composition; appointment, qualifications and terms of members.

 

(a) For the purposes of this division, a real estate professional is defined to include a commercial or residential real estate appraiser, other real estate professional, builder, developer, or legal or financial professional.

 

(b) There is hereby established a board of review of real estate assessments, which shall be composed of five (5) members who shall be appointed by the city council. All members of such board shall be residents of the city and all shall own an interest in real property in fee within the city. At least thirty (30) percent of the members of the board shall be real estate professionals. No person assigned to the office of the assessor of real estate shall serve as a member of such board.

(c) In order to be eligible for appointment, each prospective member of such board shall attend and participate in the basic courses of instruction given by the Department of Taxation under 58.1-206 of the Code of Virginia. In addition, at least once every four (4) years of service on the board, each member shall take continuing education instruction provided by the tax commissioner pursuant to 58.1-206.

 

(d) The members of the board of review of real estate assessments shall be appointed for terms of four (4) years; provided, that the council may appoint or reappoint members for lesser terms in order that the term of one (1) member of the board shall expire each year. All vacancies shall be filled by the council for the unexpired term. No member shall serve for more than nine (9) consecutive years and upon the expiration of such nine (9) consecutive years such person shall not be eligible for reappointment for a period of three (3) years.

(Ord. No. 389; Ord. No. 637, 11-14-79; Code 1964, 39-8, 39-10, 39-12; Ord. No. 1377, 6-9-04)

Charter References: Duty to establish above board, and provisions similar to subsection (b), 6.06.

Cross References: General requirement that members of boards and commissions be city residents, 2-2.

 

Sec. 37-19. Same--Officers and employees; compensation of members.

 

The board of review of real estate assessments shall annually elect one of its members as chairperson and a secretary, who need not be a member of the board. A person assigned to the office of the assessor of real estate may act as secretary for the board upon its direction. The board of review may employ necessary clerical or other personnel, subject to appropriations made by the city council. Within the provisions of the Charter, the members of the board shall receive such compensation as shall be appropriated by the city council.

(Ord. No. 389; Code 1964, 39-12)

Charter References: Similar provisions, 6.06.

 

Sec. 37-20. Same--General powers.

 

The board of real estate assessments shall have and may exercise the power to revise, correct and amend any and all assessments of real estate made by the office of the assessor of real estate. Such board shall also have all the powers conferred upon boards of equalization by section 58.1-3378 through 58.1-3387 of the Code of Virginia.

(Ord. No. 389; Code 1964, 39-9; Ord. No. 997, 2-27-91)

Charter References: Similar provisions, 6.06.

 

Sec. 37-21. Same--Meetings; rules of procedure.

 

The board of review of real estate assessments shall meet at such place or places and for such time as may be necessary to properly discharge its duties and exercise the powers conferred by this division. Public notice shall be given at least ten (10) days prior to each meeting by publication in a newspaper of general circulation in the city and also by posting the notice at the court house and at each public library, voting precinct or both. Such posting shall be done by the sheriff or his deputy.

 

Such board may adopt rules and regulations of procedure pertaining to requests for review or appeal. The secretary of such board shall file any rules so adopted with the clerk of council. Except as otherwise provided by law, all proceedings of such board shall be in public session and no decision shall be made unless and until such board has heard a report on such assessment or the equalization thereof from the office of the assessor of real estate. The board's rules, regulations and procedures, and the conduct of its meetings shall be in accordance with 58.1-3378 through 58.1-3387 of the Code of Virginia.

(Ord. No. 389; Code 1964, 39-11; Ord. No. 1377, 6-9-04)

 

Sec. 37-22. Same--Right of appeal to board.

 

Any person aggrieved by any assessment made by the office of the assessor of real estate may apply for review or appeal of same to the board of review of real estate assessments, provided such appeal is filed on forms provided by the Board of Review by August 15 of the year for which the assessment is made. When the board considers any case involving commercial, industrial, or multi-family residential property, at least one (1) member who is a real estate professional shall be present and participate in hearing the case unless waived by the taxpayer.

(Ord. No. 389; Code 1964, 39-7; Ord. No. 1377, 6-9-04)

Charter References: Similar provisions, 6.06.

 

Sec. 37-23. Same--Appeal from decisions of board.

 

Any person, including the office of the assessor of real estate, aggrieved by any assessment or the equalization thereof made by the board of review of real estate assessments may apply for relief to the court in the manner provided by sections 58.1-3984 through 58.1-3989.

(Ord. No. 389; Code 1964, 39-13; Ord. No. 997, 2-27-91)

Charter References: Similar provisions, 6.06.

 

Sec. 37-24. Assessments by state corporation commission.

 

(a) The preceding sections of this division shall not apply to the assessment of any real estate assessable pursuant to law by the state corporation commission.

 

(b) The assessment by the state corporation commission of the real properties of public service corporations for the preceding year shall be taken as the assessment of such properties for levying taxes and collecting the first installment thereon pursuant to this division, until the regular annual assessment of such properties by the commission for the current year is completed as provided by state law. Upon the payment of the final installment of such taxes to the city by any such public service corporation, the total of such taxes for the current year shall be adjusted on the basis of the assessment by the state corporation commission for the current year.

(c) The state corporation commission may, upon the application of any such public service corporation or the city filed with the commission on or before the fifteenth day of January in any year, amend its assessment for the preceding year by increasing or decreasing the same, by reason of any improvements or additions thereto, or proper deductions therefrom, or other changes affecting the assessment of the properties of such corporation within the preceding year, such increases, decreases and changes to be subject to adjustment by the commission until the regular annual assessment of the properties of the corporation is completed by the commission.

(Ord. No. 273; Ord. No. 389; Code 1964, 39-14, 39-54, 39-55)

State Law Reference: Code of Virginia, 58.1-3917.

 

Sec. 37-25. When tax due and payable.

 

All taxes in the city levied on real estate shall become due and payable as follows: One-half shall become due and payable on or before the fifth day of December and one-half shall become due and payable on or before the fifth day of June of the tax year in which the levy is made.

(Ord. No. 273; Ord. No. 447; Ord. No. 639, 11-14-79; Code 1964, 39-52)

State Law References: Authority for above section, Code of Virginia, 58.1-3916.

 

Sec. 37-26. Tax bills.

 

The city treasurer shall, as soon as may be in each year, send by United States mail, to each taxpayer assessed with real estate taxes for that year, a bill or bills in the form prescribed by the state department of taxation. The bill or bills for real estate taxes due on June fifth shall be mailed to the taxpayer not later than May tenth and the bill or bills for real estate taxes due on December fifth shall be mailed to the taxpayer not later than November tenth.

(Ord. No. 273; Ord. No. 441; Ord. No. 447; Code 1964, 39-53)

 

Sec. 37-27. When taxes to be received without penalty and interest.

 

The treasurer shall commence to receive real estate taxes as soon as he receives copies of the landbook from the assessor, which shall be no later than the first day of September, and the treasurer shall continue to receive the amount due and payable for the first semiannual installment of one-half to the total tax due for the then current year, or the total amount due, if the taxpayer desires, up to and including the fifth day of December of each year, without penalty or interest. The treasurer shall also continue to receive the second semiannual installment of the remaining one-half of the total tax due for the then current year up to an including the fifth day of June of each year, without penalty or interest.

(Ord. No. 273; Ord. No. 441; Ord. No. 447; Ord. No. 639, 11-14-79; Code 1964, 39-55)

 

Sec. 37-28. Penalty on delinquencies.

 

Any person failing to pay an installment of real estate levies on or before the fifth day of December or June of the assessment year, when such installment falls due, shall incur a penalty thereon of ten (10) percent of the tax due, which shall be added to the amount of taxes or levies due from such taxpayer. Such penalty, when so assessed, shall become a part of the tax.

(Ord. No. 273; Ord. No. 441; Ord. No. 447; Ord. No. 639, 11-14-79; Ord. No. 707, 12-16-81; Code 1964, 39-57)

Charter References: Authority of council to impose penalties for nonpayment of taxes, 6.18.

State Law References: Authority for above section, Code of Virginia, 58.1-3916.

 

Sec. 37-29. Interest on delinquencies.

 

Interest, at a rate of one-twelfth of ten (10) percent per month or portion of a month from the first day of July of the year next following the assessment year shall be collected upon the principal and penalties of all real estate taxes and levies then remaining unpaid, which penalty and interest shall be collected and accounted for by the officers charged with the duty of collecting such taxes or levies, along with the principal sum thereof.

State Law References: Authority for above section, Code of Virginia, 58.1-3916.

 

Sec. 37-30. How payments credited.

 

Pursuant to section 58.1-3913 of the Code of Virginia, the city treasurer shall credit any payment of real estate taxes first against the most delinquent account, the collection of which is not subject to a defense of an applicable statute of limitations.

(Ord. No. 690; Code 1964, 39-58.1; Ord. No. 997, 2-27-91; Ord. No. 1308, 6-13-01)

 

Sec. 37-31. Surplus proceeds paid to the City from delinquent real estate tax sales.

 

Within three calendar years of the City receiving surplus funds from the sale of real estate pursuant to Virginia Code Section 58.1-3967, as amended, the council may, upon the request of the former owner, his heirs or assigns, or unknown beneficiary of said real estate pay over such amount of the surplus funds as the council may deem appropriate to the former owner, his heirs or assigns, or unknown beneficiary upon presentation of an Order of the Circuit Court in which such real estate is located evidencing a prior entitlement thereto and the amount of such entitlement, subject o offset of administrative costs incurred by the City.

 

Secs. 37-32--37-40. Reserved.

 

DIVISION 2.

 

ASSESSMENT OF LAND DEVOTED TO AGRICULTURAL OR HORTICULTURAL USES*

__________

* State Law References: Authority of city to adopt ordinance similar to this division, Code of Virginia, 58.1-3231.

__________

 

 

 

Sec. 37-41. Findings of fact.

 

The city council finds that the preservation of real estate devoted to agricultural and horticultural uses within its boundaries is in the public interest and, having heretofore adopted a land-use plan, hereby ordains that such real estate shall be taxed in accordance with the provisions of article 4 of chapter 32 of title 58.1 ( 58.1-3230 et seq.) of the Code of Virginia and of this division.

(Ord. No. 530; Code 1964, 39-107; Ord. No. 997, 2-27-91)

 

Sec. 37-42. Application for classification and assessment generally.

 

(a) The owner of any real estate meeting the criteria set forth in sections 58.1-3230 and 58.1-3233 of the Code of Virginia may, at least sixty (60) days preceding the tax year for which such taxation is sought, apply to the assessor for the classification, assessment and taxation of such property for the next succeeding tax year on the basis of its use, under the procedures set forth in section 58.1-3236 of the Code of Virginia. In any year in which a general reassessment is being made, such application may be submitted until thirty (30) days have elapsed after the notice of increase in assessment is mailed in accordance with Code of Virginia, 58.1-3330, or sixty (60) days preceding the tax year, whichever is later. Such application shall be on forms provided by the state department of taxation and supplied by the assessor and shall include such additional schedules, photographs and drawings as may be required by the assessor.

 

(b) An individual who is the owner of an undivided interest in a parcel may apply under this section on behalf of himself and the other owners of such parcel, upon submitting an affidavit that such other owners are minors or cannot be located.

 

(c) An application shall be submitted under this section whenever the use or acreage of such land previously approved changes.

 

(d) An application fee of twenty-five dollars ($25.00) shall accompany each application under this section.

 

(e) A separate application shall be filed under this section for each parcel on the land book.

(Ord. No. 530; Ord. No. 639, 11-14-79; Code 1964, 39-108; Ord. No. 997, 2-27-91)

 

Sec. 37-43. Determination by assessor.

 

(a) Promptly upon receipt of any application under this division, the assessor shall determine whether the subject property meets the criteria for taxation hereunder. If the assessor determines that the subject property does meet such criteria, he shall determine the value of such property for its qualifying use, as well as its fair market value.

 

(b) In determining whether the subject property meets the criteria for "agricultural use" or "horticultural use," the assessor may request an opinion from the state commissioner of agriculture and consumer services. Upon the refusal of such commissioner to issue an opinion, or in the event of an unfavorable opinion which does not comport with standards set forth by such commissioner, the party aggrieved may seek relief from the circuit court of the city, if the court finds in his favor, it may issue an order which shall serve in lieu of an opinion for the purposes of this division.

(Ord. No. 530; Code 1964, 39-109)

 

Sec. 37-44. Land book entries; tax to be extended from use value.

 

The use value and fair market value of any property qualifying under this division shall be placed on the land book before delivery to the city treasurer and the tax for the next succeeding tax year shall be extended from the use value.

(Ord. No. 530; Code 1964, 39-110)

 

Sec. 37-45. Roll-back tax when use changes to nonqualifying use.

 

(a) There is hereby imposed a roll-back tax, and interest thereon, in such amounts as may be determined under section 58.1-3237 of the Code of Virginia, upon any property as to which the use changes to a nonqualifying use under this division, or any property as to which the zoning is changed to a more intensive use at the request of the owner or his agent.

(b) The owner of any real estate liable for roll-back taxes shall, within sixty (60) days following a change in use or zoning, report such change to the assessor on such forms as may be prescribed. The assessor shall forthwith determine and assess the roll-back tax, which shall be paid to the treasurer within thirty (30) days of assessment. On failure to report within sixty (60) days following such change in use or zoning, or failure to pay within thirty (30) days of assessment, such owner shall be liable for an additional penalty equal to ten (10) percent of the amount of the roll-back tax and interest, which penalty shall be collected as a part of the tax. In addition to such penalty, there is hereby imposed interest of one-twelfth of eight (8) percent of the amount of the roll-back tax, interest and penalty, for each month or fraction thereof during which the failure continues.

(Ord. No. 530; Code 1964, 39-111, 39-112; Ord. No. 997, 2-27-91)

State Law Reference: Code of Virginia, 58.1-3237.

 

Sec. 37-46. Misstatements in application filed under division.

 

Any person making a material misstatement of fact in any application filed pursuant to this division shall be liable for all taxes, in such amounts and at such times as if such property had been assessed on the basis of fair market value as applied to other real estate in the city, together with interest and penalties thereon,; and if such material misstatement was made with the intent to defraud the city, he shall be further assessed with an additional penalty of one hundred (100) percent of such unpaid taxes.

(Ord. No. 530; Code 1964, 39-112)

State Law Reference: Code of Virginia, 58.1-3238.

 

 

 

Sec. 37-47. Applicability of general tax law.

 

The provisions of title 58.1 of the Code of Virginia applicable to local levies and real estate assessment and taxation shall be applicable to assessments and taxation under this division mutatis mutandis including, without limitation, provisions relating to tax liens, boards of equalization and the correction of erroneous assessments, and for such purposes the roll-back taxes shall be considered to be deferred real estate taxes.

(Ord. No. 530; Code 1964, 39-113; Ord. No. 997, 2-27-91)

State Law Reference: Code of Virginia, 58.1-3243.

 

Secs. 37-4837-60. Reserved.

 

DIVISION 3.

 

EXEMPTION FOR PROPERTY UTILIZING SOLAR ENERGY EQUIPMENT, FACILITIES OR DEVICES*

__________

* State Law References: Authority of city to adopt ordinance similar to this division, Code of Virginia, 58.1-3661.

__________

 

Sec. 37-61. Definitions.

 

For the purposes of this division, the following words and phrases shall have the meanings respectively ascribed to them by this section:

 

Certified solar energy equipment, facilities or devices shall mean any property, including real or personal property, equipment, facilities or devices, certified by the local certifying authority, that is designed and used primarily for the purpose of providing for the collection and use of incident solar energy for water heating, space heating or cooling or other application which would otherwise require a conventional source of energy, such as petroleum products, natural gas or electricity, regardless of the existence of a conventional energy backup system.

 

Local tax rate shall mean the real property tax rate.

 

Local certifying authority shall mean the local building departments or the Department of Waste Management.

(Ord. No. 636, 10-24-79; Code 1964, 39-130)

 

Sec. 37-62. Equipment, facilities and devices constitute separate class of property.

 

Certified solar energy equipment, facilities and devices, as defined in section 37-61, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of real or personal property.

(Ord. No. 636, 10-24-79; Code 1964, 39-129)

 

Sec. 37-63. Authorized.

 

Tax exemption is provided according to the terms of this division for qualified property owners who use certified solar energy equipment, facilities or devices to provide or to supplement their energy requirements.

(Ord. No. 636, 10-24-79; Code 1964, 39-131)

 

Sec. 37-64. Administration.

 

The exemption provided for in this division shall be administered by the building inspection department and the office of the assessor of real estate according to the general provisions of this division.

(Ord. No. 636, 10-24-79; Code 1964, 39-132)

 

Sec. 37-65. Eligibility requirements.

 

Exemptions shall be granted to persons under this division subject to the following provisions:

 

(1) The title of the property for which exemption is claimed is held, or partially held, on the first day of the taxable year, by the person claiming exemption.

 

(2) The building inspection department has determined, after examination of the solar energy equipment, facility or device, that the unit primarily performs at least one of the functions set forth in section 37-61 and conforms to the requirements set by regulations of the state department of housing and community development.

 

(3) The state department of housing and community development has certified to the city assessor that the applicant has met all requirements qualifying such equipment, facilities or devices for exemption from taxation.

(Ord. No. 636, 10-24-79; Code 1964, 39-133)

 

Sec. 37-66. Application.

 

(a) A person claiming an exemption under this division shall file an application with the building inspection department, on forms provided by the state department of housing and community development and available from the building inspection department.

 

(b) The application required by this section shall be submitted with a complete set of plans and specifications of the solar energy equipment, facilities or devices for which exemption is claimed.

(Ord. No. 636, 10-24-79; Code 1964, 39-134)

 

 

 

 

Sec. 37-67. Determination of, and presumption as to, value of equipment, facilities or devices.

 

(a) Upon receipt of the certificate referred to in section 37-65 from the state department of housing and community development, the city assessor shall proceed to determine the value of solar energy equipment, facilities or devices covered by the certificate.

 

(b) For purposes of the administration of this division, and for no other purposes, the value of certified solar energy equipment, facilities or devices qualifying for exemption shall be presumed to be not less than the normal cost of purchasing and installing such equipment, facilities or devices.

(Ord. No. 636, 10-24-79; Code 1964, 39-134, 39-136)

 

Sec. 37-68. Amount of exemption.

 

The amount of the exemption provided for by this division shall be determined by applying the local tax rate to the value of the certified solar energy equipment, facilities or devices and subtracting one hundred (100) percent of such amount from the total real estate property tax due on the real property to which such equipment, facilities or devices are attached.

(Ord. No. 636, 10-24-79; Code 1964, 39-136)

State Law Reference: Code of Virginia, 58.1-3661.

 

Sec. 37-69. Effective date of exemption.

 

The exemption provided for in this division shall be effective in the tax year next succeeding the year in which application for the exemption is made. In the case of real estate assessed pursuant to section 58.1-3292 of the Code of Virginia, the exemption shall be effective when the real estate is first assessed or on the date of application for exemption, whichever is later.

(Ord. No. 636, 10-24-79; Code 1964, 39-137; Ord. No. 997, 2-27-91)

 

Sec. 37-70. Appeal from decisions under division.

 

Any person aggrieved by a decision of the building inspection department under this division may appeal such decision to the local board of building code appeals, which may affirm or reverse such decision.

(Ord. No. 636, 10-24-79; Code 1964, 39-135)

State Law Reference: Code of Virginia, 58.1-3661.

 

Secs. 37-71--37-80. Reserved.

 

DIVISION 4.

 

EXEMPTION FOR REHABILITATED RESIDENTIAL REAL ESTATE*

__________

* State Law References: Authority of city to adopt ordinance similar to this division, Code of Virginia 58.1-3220.

__________

 

Sec. 37-81. Authorized.

 

There is hereby provided an exemption from taxation of real estate, which has been substantially rehabilitated for residential or multi-family use. For the purposes of this section, any real estate shall be deemed to have been substantially rehabilitated when a structure, which is no less than twenty-five (25) years of age, has been so improved as to increase the assessed value of the structure by no less than forty (40) percent, without increasing the total square footage of such structure by more than fifteen (15) percent.

(Ord. No. 644, 12-12-79; Code 1964, 39-91; Ord. No. 1290, 1-10-01)

 

Sec. 37-82. Building permits required.

 

No property shall be eligible for the exemption provided by this division, unless the appropriate building permits have been issued prior to the beginning of the new alterations.

(Ord. No. 644, 12-12-79; Ord. No. 681, 2-25-82; Code 1964, 39-93)

 

Sec. 37-83. Application.

 

(a) A person claiming an exemption pursuant to the provisions of this division shall file an application with the city assessor on such forms as the assessor shall prescribe. Such application shall be filed within five (5) working days after the building permits referred to in section 37-82 have been issued and prior to any renovations being started.

 

(b) The owner under oath shall sign the application for tax abatement.

 

(c) Only one application per residential structure for inclusion in this program shall be approved.

 

(d) All renovations must be completed within one (1) year from being approved in order to qualify for the exemption.

 

(e) There shall be a non-refundable fee of fifty dollars ($50.00) for processing each application under this section.

(Ord. No. 644, 12-12-79; Ord. No. 681, 2-25-81; Code 1964, 39-93, 39-94; Ord. No. 1290, 1-10-01)

 

Sec. 37-84. Verification and certification of rehabilitation.

 

(a) When renovations are completed, the property owner, or his agent, must notify the assessor. When notified of completion, the city assessor shall verify that the rehabilitation indicated on the application filed under this division meets all requirements for the exemption, or that the requirements have not been met.

 

(b) The property must at all times be in full compliance with all Hampton City Codes including, without limitation, the Building Code, the Housing Code, the Zoning Ordinance of the City of Hampton, and all other rules and regulations which affect or control the occupancy, use and management of the property. Should the director of codes compliance determine that the property is substantially out of compliance with applicable city ordinances, the director of codes compliance shall thereupon give notice to the owner. The owner, having received written notice of ordinance violations, shall be granted thirty (30) days in which to correct said violations or to establish, to the satisfaction of the director of codes compliance, that the citation is in error. If after thirty (30) days have elapsed and the ordinance violation has not been corrected to the satisfaction of the director of codes compliance, the city assessor shall be given written notification to revoke any tax abatement approved under this division.

 

(c) The city assessor's determination of eligible properties as applies to this program shall be final and not subject to appeal.

 

(d) All taxes and assessments due the City of Hampton must be current prior to approval of exemption.

 

(e) If, after investigation, the city assessor determines that the real estate for which the exemption is claimed qualifies under this division, he shall so certify to the city treasurer, who shall deduct the amount of the exemption from the applicant's real estate tax liability.

(Ord. No. 644, 12-12-79; Ord. No. 681, 2-25-81; Code 1964, 39-93, 39-94; Ord. No. 1290, 1-10-01)

 

Sec. 37-85. Amount of exemption.

 

The exemption authorized by this division shall be an amount equal to the increase in assessed value resulting from the rehabilitation of the residential structure, as determined by the city assessor, and this amount only shall be applicable to any subsequent assessment or reassessment.

(Ord. No. 644, 12-12-79; Code 1964, 39-92; Ord. No. 1290, 1-10-01)

 

Sec. 37-86. Duration of exemption.

 

An exemption granted under this division shall commence on July first of the taxable year following completion of the rehabilitation and shall run with the real estate for a period of three (3) years initially, at the amount designated in section 37-85; and then for the next three (3) years at a rate of fifty (50) percent of the amount in section 37-85. This exemption, in whole or in part, shall not exceed six (6) years upon qualifying.

(Ord. No. 644, 12-12-79; Code 1964, 39-92; Ord. No. 1290, 1-10-01)

 

Sec. 37-87. Reduced value not to be listed in land book.

 

Nothing in this division shall be construed so as to permit the real estate assessor to list upon the land book any reduced value due to the exemption provided in this division.

(Ord. No. 644, 12-12-79; Code 1964, 39-92)

Secs. 37-88--37-95. Reserved.

 

DIVISION 5.

 

EXEMPTION FOR REHABILITATED COMMERCIAL OR INDUSTRIAL REAL ESTATE*

__________

* State Law References: Authority of city to adopt ordinance similar to this division, Code of Virginia 58.1-3221.

__________

 

Sec. 37-96. Authorized.

 

There is hereby provided an exemption from taxation of real estate, which has been substantially rehabilitated for commercial or industrial use. For the purposes of this section, any real estate shall be deemed to have been substantially rehabilitated when a structure, which is no less than twenty-five (25) years of age or fifteen (15) years of age if located in the Citys designated enterprise zones, has been so improved as to increase the assessed value of the structure by no less than sixty percent (60%) without increasing the total square footage of the structure by more than twenty-five percent (25%).

(Ord. No. 644, 12-12-79; Code 1964, 39-95; Ord. No. 1289, 1-10-01)

 

Sec. 37-97. Building permits required.

 

No property shall be eligible for the exemption provided by this division, unless the appropriate building permits have been issued prior to the beginning of the new alterations.

(Ord. No. 644, 12-12-79; Ord. No. 681, 2-25-81; Code 1964, 39-97)

 

Sec. 37-98. Application.

 

(a) A person claiming an exemption pursuant to the provisions of this division shall file an application with the city assessor on such form as the assessor shall prescribe. Such application must be filed within five (5) working days after the building permits referred to in section 37-97 have been issued and prior to any renovations being started; however, for good cause shown, the assessor may extend the filing date and fee for a maximum of twenty-four (24) months.

 

(b) The owner under oath shall sign the application for tax abatement.

 

(c) Only one (1) application per commercial or industrial structure for inclusion in this program shall be approved.

 

(d) All renovations must be completed within twenty-four (24) months from being approved in order to qualify for the exemption.

 

(e) There shall be a non-refundable fee of one hundred dollars ($100.00) for processing each application under this section.

(Ord. No. 644, 12-12-79; Ord. No. 681, 2-25-81; Code 1964, 39-97, 39-98; Ord. No. 1289, 1-10-01; Ord. No. 1331, 5-8-02)

 

Sec. 37-99. Verification and certification of rehabilitation.

 

(a) When renovations are completed, the property owner, or his agent, must notify the assessor. When notified of the completion, the city assessor shall verify that the rehabilitation indicated on the application filed under this division meets all requirements for the exemption, or that the requirements have not been met.

 

(b) The property must at all times be in full compliance with all Hampton City Codes including, without limitation, the Building Code, the Housing Code, the Zoning Ordinance of the City of Hampton, and all other rules and regulations which affect or control the occupancy, use and management of the property. Should the director of codes compliance determine that the property is substantially out of compliance with applicable city ordinances, the director of codes compliance shall thereupon give notice to the owner. The owner, having received written notice of ordinance violations, shall be granted thirty (30) days in which to correct said violations or to establish, to the satisfaction of the director of codes compliance, that the citation is in error. If after thirty (30) days have elapsed and the ordinance violation has not been corrected to the satisfaction of the director of codes compliance, the city assessor shall be given written notification to revoke any tax abatement approved under this division.

 

(c) The city assessor's determination of eligible properties as applies to this program shall be final and not subject to appeal.

 

(d) All taxes and assessments due the City of Hampton must be current prior to approval of exemption.

 

(e) If, after investigation, the city assessor determines that the real estate for which an exemption under this division is claimed qualifies, he shall so certify to the city treasurer, who shall deduct the amount of the exemption from the applicant's real estate tax liability.

(Ord. No. 644, 12-12-79; Ord. No. 681, 2-25-81; Code 1964, 39-97, 39-98; Ord. No. 1289, 1-10-01)

 

Sec. 37-100. Amount of exemption.

 

The exemption authorized by this division shall be an amount equal to the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure, as determined by the city assessor, and this amount only shall be applicable to any subsequent assessment or reassessment.

(Ord. No. 644, 12-12-79; Code 1964, 39-96; Ord. No. 1289, 1-10-01)

 

Sec. 37-101. Duration of exemption.

 

An exemption granted under this division shall commence on July first of the taxable year following completion of the rehabilitation or replacement and shall run with the real estate for a period of three (3) years initially, at the amount designated in section 37-100; and then for the next three (3) years at a rate of fifty (50) percent of the amount in section 37-100. This exemption, in whole or in part, shall not exceed six (6) years upon qualifying.

(Ord. No. 644, 12-12-79; Code 1964, 39-96; Ord. No. 1289, 1-10-01)

 

Sec. 37-102. Reduced value not to be listed in land book.

 

Nothing in this division shall be construed so as to permit the real estate assessor to list upon the landbook any reduced value due to the exemption provided in this division.

(Ord. No. 644, 12-12-79; Code 1964, 39-96)

 

Secs. 37-103--37-115. Reserved.

 

DIVISION 6.

 

EXEMPTION OR DEFERRAL FOR ELDERLY AND DISABLED PERSONS*

 

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* Editors Note: Ord. No. 1401, adopted May 25, 2005, amended Div. 6, in its entirety, to read as herein set out. Prior to inclusion of said ordinance, Div. 6 pertained to similar subject matter. See also the Code Comparative Table.

State Law References: Authority of city to adopt ordinance similar to this division, Code of Virginia 58.1-3210.

__________

 

Sec. 37-116. Definitions.

 

For the purposes of this division, the following words and phrases shall have the meanings respectively ascribed to them by this section:

 

Affidavit shall mean the real state tax exemption or deferral affidavit provided for in this division.

 

Deferral shall mean a total or partial deferral of real estate taxes assessed on real property inhabited by a taxpayer qualified under the terms of this division. The amount of such taxes so deferred shall become due and payable at a later date in accordance with the provisions of section 37-124 of this division.

 

Dwelling shall mean the full-time residence of the person claiming exemption, deferral, or freeze pursuant to this division.

 

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 a person's life.

Property shall mean real property.

 

Tax exemption shall mean the exemption of that portion of the real estate tax owed by a qualified taxpayer as determined by section 37-123 of this division. No lien shall accrue as a result of the amount certified as exempt under this section.

 

Tax freeze shall mean the total exemption of that portion of the real estate tax which represents the increase in such tax since the taxpayer initially applied and qualified for a freeze under this division, so that the taxpayer's real estate tax will be frozen at the amount assessed in the fiscal year in which the taxpayer initially applied and qualified. If, for any year following the initial qualification of a taxpayer for a tax freeze such taxpayer becomes disqualified, any subsequent application for a freeze by such taxpayer shall be treated as an initial application for purposes of determining the tax freeze. No lien shall accrue as a result of the amount certified as exempt under this section.

 

Taxable year shall mean the year for which an annual assessment is made and for which exemption, deferral, or freeze is claimed under this division.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-117. Authorized.

 

Real estate tax exemption, deferral, or freeze is provided for property owners who are eligible according to the terms of this division and who have qualified by meeting the requirements of this division. Persons qualifying for such exemption, deferral, or freeze are deemed to be bearing an extraordinary real estate tax burden in relation to their income and financial worth.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-118. Administration; general authority of assessor.

 

(a) The exemption, deferral, or freeze provided for in this division shall be administered by the commissioner of the revenue according to the provisions of this division. The commissioner of the revenue is hereby authorized and empowered to prescribe, adopt, promulgate and enforce such rules and regulations, in conformance with the provisions of this division and the laws of the commonwealth enabling this division, including the requirement of answers under oath, as may be reasonably necessary to determine qualifications for the exemption, deferral, or freeze provided for in this division.

 

(b) The commissioner of the revenue shall make such inquiry as may be reasonably necessary to determine the qualifications and the eligibility of persons seeking exemption, deferral, or freeze under this division. He may, in addition, require the production of certified tax returns and appraisal reports to establish the income or financial worth of any applicant for such exemption, deferral, or freeze.

 

(c) All inquiries made by the commissioner of the revenue and all information supplied by an applicant pursuant to this division shall be deemed confidential and shall not be released to any person other than an employee or officer of the office of the commissioner of the revenue or other persons designated by the commissioner of the revenue, having a need to know such information, unless otherwise ordered by a court of law.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-119. General prerequisites to grant; effect of transfer of dwelling as result of eminent domain and of residency in hospital, nursing home, etc.

 

(a) Either the exemption, deferral, or freeze, but, not more than one (1), as provided for in this division shall be granted to eligible persons subject to the following conditions:

 

(1) The real estate is owned by, or is partially owned by, and occupied as the sole dwelling of, a person who is either permanently and totally disabled or is not less than sixty-five (65) years of age, as of the last day of the calendar year immediately preceding the taxable year. A dwelling jointly held by a husband and wife shall qualify if either spouse is over sixty-five (65) years of age or is permanently and totally disabled.

 

(2) For the tax exemption program, the total combined income during the calendar year immediately preceding the taxable year, from all sources, of the owner of the dwelling living therein and of the owner's or owner's relatives living in the dwelling does not exceed thirty-one thousand dollars ($31,000.00); provided, that the first seven thousand dollars ($7,000.00) of income of each relative, other than spouse, of the owner who is living in the dwelling, shall not be included in such total.

 

(3) For the tax freeze program, the total combined income during the calendar year immediately preceding the taxable year, from all sources, of the owner of the dwelling living therein and of the owner's or owner's relatives living in the dwelling does not exceed fifty thousand dollars ($50,000.00); provided, that the first seven thousand dollars ($7,000.00) of income of each relative, other than spouse, of the owner who is living in the dwelling, shall not be included in such total.

 

(4) For the tax deferral program, the total combined income during the calendar year immediately preceding the taxable year, from all sources, of the owner of the dwelling living therein and of the owner's or owner's relatives living in the dwelling does not exceed fifty thousand dollars ($50,000.00); provided, that the first seven thousand dollars ($7,000.00) of income of each relative, other than spouse, of the owner who is living in the dwelling, shall not be included in such total.

 

(5) For the tax exemption program, the net combined financial worth, including equitable interests, as of the thirty-first day of December of the calendar year immediately preceding the taxable year, of the owner and of the spouse of the owner, excluding the value of the dwelling and the land, not exceeding ten (10) acres, upon which it is situated, does not exceed two hundred thousand dollars ($200,000.00).

 

(6) For the tax freeze program, the net combined financial worth, including equitable interests, as of December thirty-first of the year immediately preceding the taxable year, of the owners, and of the spouse of any owner, excluding the value of the dwelling and the land not exceeding ten (10) acres upon which it is situated, shall not exceed two hundred thousand dollars ($200,000.00).

 

(7) For the tax deferral program, the net combined financial worth, including equitable interests, as of December thirty-first of the year immediately preceding the taxable year, of the owners, and of the spouse of any owner, excluding the value of the dwelling and the land not exceeding ten (10) acres upon which it is situated, shall not exceed two hundred thousand dollars ($200,000.00).

 

(8) Notwithstanding subdivisions (2), (3), and (4) of this section, if a person qualifies for an exemption, deferral, or freeze under this division, and if the person can prove by clear and convincing evidence that the person's physical or mental health has deteriorated to the point that the only alternative to permanently residing in a hospital, nursing home, convalescent home or other facility for physical or mental care is to have a relative move in and provide care for the person, and if a relative does then move in for that purpose, then none of the income of the relative or of the relative's spouse shall be counted towards the income limit, provided the owner of the residence has not transferred assets in excess of ten thousand dollars ($10,000.00) without adequate consideration within a three-year period prior to or after the relative moves into such residence.

 

(9) If the dwelling of a person who would otherwise be eligible for exemption, deferral, or freeze under this division is transferred as a result of eminent domain, or threat or imminence thereof, such person shall be entitled to such exemption, deferral, or freeze for the period of such person's holding title to this property so transferred and also from the date of his taking record title to a dwelling acquired to replace the transferred property.

 

(10) The fact that persons who are otherwise qualified for tax exemption, deferral, or freeze pursuant to this division 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, deferral, or freeze is sought does not continue to be the 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.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-120. Mobile home as real estate for purposes of division.

 

For the purposes of this division, a mobile home shall be real estate, if the owner's intention that it be permanently affixed is shown by the fact that:

 

(1) It is located on land belonging in whole or in part to the owner of the mobile home, his spouse, parent or child, and is connected to permanent water or sewage lines or facilities; or

 

(2) Whether or not it is located on land belonging to persons described in (1) above, it rests on a permanent foundation, and consists of two (2) or more mobile units which are connected in such a manner that they cannot be towed together on a highway, or consists of a mobile unit and other connected rooms or additions which must be removed before the mobile unit can be towed on a highway.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-121. Applicant's affidavit and certificate of disability.

 

(a) Annually, before the first day of September each calendar year, a person claiming an exemption, deferral, or freeze under this division shall file a real estate tax exemption, deferral, or freeze affidavit with the commissioner of the revenue or the designee of the commissioner of the revenue, for exemption, deferral, or freeze to be effective in the fiscal year beginning in the calendar year in which the affidavit was received. The commissioner of the revenue may permit a subsequent filing, on or before the fifth day of December of the then current year, if the person is a first-time applicant or a hardship case and good cause is shown.

 

(b) Notwithstanding any other provision of this section, the commissioner of the revenue shall permit an otherwise eligible person, whose dwelling has been transferred as a result of eminent domain, or threat or imminence thereof, to file the affidavit required by this section within thirty (30) days after such person takes record title to a dwelling acquired to replace the dwelling so transferred.

 

(c) The affidavit required by this section shall set forth, in a manner prescribed by the commissioner of the revenue, the name of the owner occupying the dwelling and the names of any related persons living in the dwelling for which exemption, deferral, or freeze is claimed, their gross income and their total combined net worth. The affidavit shall also include an indication as to whether the person claims the exemption, deferral, or freeze option, and if deferral, the amount of deferral claimed, not to exceed one hundred (100) percent of the real estate tax liability.

 

(d) If the applicant is under sixty-five (65) years of age, the affidavit required by this section shall have attached thereto a certification by the Social Security Administration, the Department of Veterans Affairs or the Railroad Retirement Board, or if such person is not eligible for certification by any of these agencies, a sworn affidavit by two (2) medical doctors who are either licensed to practice medicine in the commonwealth or are military officers on active duty who practice medicine with the United States Armed Forces, to the effect that such person is permanently and totally disabled, as defined in section 37-116; however, a certification pursuant to 42 USC 423(d) by the Social Security Administration, so long as the person remains eligible for such Social Security benefits, shall be deemed to satisfy such definition in section 37-116. The affidavit of at least one of such doctors shall be based upon a physical examination of the applicant by such doctor. The affidavit of one (1) 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, as defined in section 37-116.

(Ord. No. 1401, 5-25-05)

State Law Reference: Code of Virginia, 58.1-3213.

 

Sec. 37-122. Certification to city treasurer; adjustment of tax records, etc.

 

If, after audit and investigation, the commissioner of the revenue determines that a person is qualified for exemption, deferral, or freeze under this division, he shall cause such fact to be certified to the city treasurer, who shall deduct the amount of exemption, deferral, or freeze from the claimant's real estate tax liability and adjust the tax records accordingly. Any remaining tax due shall be billed in equal installments in accordance with the ordinances of the city as to the payment of such bills.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-123. Amount of exemption.

 

(a) A person qualifying for and claiming exemption and who has a gross income during the year immediately preceding the taxable year in an amount not to exceed twenty-five thousand dollars ($25,000.00) shall be exempt from the entire amount of the real estate taxes assessed against such property.

 

(b) A person qualifying for and claiming exemption, whose total combined income is between twenty-five thousand one dollars ($25,001.00) and thirty-one thousand dollars ($31,000.00) during the calendar year immediately preceding the taxable year, shall be partially exempt from the entire amount of the real estate taxes assessed against such property. The amount of partial exemption shall be shown on the following schedule:

 

Combined income Percent of Tax Relieved

$0 to $25,000 100%

$25,001 to $27,000 75%

$27,001 to $29,000 50%

$29,001 to $31,000 25%

 

(c) No lien shall accrue as a result of the amount certified as exempt under this section.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-124. Amount of deferral; payment of deferred taxes.

 

(a) A person qualifying for and claiming deferral under this division shall be relieved of real estate tax liability levied on the qualifying dwelling and land in an amount not to exceed one hundred (100) percent of the liability, the amount to be deferred to be elected by the claimant.

(b) The accumulated amount of taxes deferred shall be paid, plus eight (8) percent interest per annum on any amount so deferred, without penalty, to the treasurer of the city, or to the clerk of the circuit court, as the case may be, by the vendor upon the sale of the dwelling, or from the estate of the decedent within one (1) year from the death of the last owner thereof who qualifies for tax deferral under the provisions of this division. 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 division; provided, however, that such liens shall, to the extent that they exceed in the aggregate ten (10) percent of the price for which such real estate may be sold, be inferior to all other liens of record.

 

(c) The treasurer shall certify and cause unpaid deferred taxes to be recorded in the delinquent tax records and marked as deferred on the second Monday in June of the second year after which such taxes would be due had such taxes not been deferred as provided herein.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-125. Nullification upon change in status.

 

Changes in respect to income, financial worth, ownership of property or other factors occurring during the taxable year for which an affidavit is filed under this division, and having the effect of exceeding or violating the limitations and conditions provided in this division, shall nullify any relief of real estate tax liability for the remainder of the then-current taxable year, and the taxable year immediately following; provided, however, a change in ownership to a spouse less than sixty-five (65) years of age, or who is not permanently and totally disabled, and when such change resulted solely from the death of his or her qualified spouse, or sale of such property, shall result in a prorated exemption, deferral, or freeze for the then-current tax year. The proceeds of the sale which would result in the prorated exemption, deferral, or freeze shall not be included in the computation of net worth or income as provided above. Such prorated portion shall be determined by multiplying the amount of the exemption, deferral, or freeze by a fraction wherein the number of complete months of the year such property was properly eligible for such exemption, deferral, or freeze is the numerator and the number twelve (12) is the denominator. Upon nullification as provided herein, the commissioner of the revenue shall so certify to the treasurer, who shall proceed to collect all taxes due and adjust his records accordingly. Also, upon nullification as provided herein for an exemption, deferral, or freeze, the penalty, as provided in section 37-28, shall be incurred on the next real estate tax installment due date, and the interest as provided in section 37-29 shall be incurred on the first day of the month of the succeeding taxable year following the installment due date when the penalty was incurred.

(Ord. No. 1401, 5-25-05)

State Law Reference: Code of Virginia, 58.1-3215.

 

Sec. 37-126. False claims.

 

Any person falsely claiming an exemption, deferral, or freeze under this division shall be guilty of a Class 1 misdemeanor. Any relief granted based on false claims shall be nullified in the same manner as 37-125.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-127. When amount of exemption/deferral/freeze exceeds the estimated amount by which revenue is reduced due to the program.

 

In any tax year in which the estimated amount by which revenue is reduced due to the program as set forth in the budget documents as approved by the city council for the purpose of providing real estate tax exemption, deferral and/or freeze under this division is not sufficient to afford the entire exemption, deferral and/or freeze allowable under the provisions of this division, the amount of exemption, deferral and/or freeze shall be computed as a fraction of that allowable under the provisions of this division, the numerator of the fraction to be the amount of the estimate of revenue reduction due to the program for the tax year and the denominator of the fraction to be the total amount of all allowable exemptions, deferrals and/or freezes qualified for under the provisions of this division.

(Ord. No. 1401, 5-25-05)

 

Sec. 37-128. Notice of local real estate tax exemption, deferral, or freeze program for the elderly and handicapped.

 

The treasurer of the city shall enclose written notice, in each real estate tax bill, of the terms and conditions of any local real estate tax exemption, deferral, or freeze program established in the city pursuant to 58.1-3210. The commissioner of the revenue and treasurer shall also employ any other reasonable means necessary to notify residents of the city about the terms and conditions of the real estate tax exemption, deferral, or freeze program for elderly and handicapped residents of the city.

(Ord. No. 1401, 5-25-05)

 

Secs. 37-129--37-135. Reserved.

 

DIVISION 7.

 

SPECIAL ASSESSMENTS FOR LOCAL IMPROVEMENTS

 

Sec. 37-136. Special assessments; projects permitted; petition.

 

In accordance with Article 2, Chapter 24, of Title 15.2 of the Code of Virginia, 1950, as amended (Section 15.2-2404, et seq.), the Council of the City of Hampton may approve by a two-thirds (2/3) vote a project for local improvements of the types specified in Code of Virginia, 15.2-2404, and order that the project be financed through special assessments. The Council shall not approve the project and order that a project be financed through a special assessment until it has received a petition of two-thirds (2/3) of the land owners abutting a project in support thereof.

(Ord. No. 878, 1-13-88)

 

Sec. 37-137. Projects; procedures; notices.

 

The city can finance only the types of projects set forth in Article 2, Chapter 24, of Title 15.2 of the Code of Virginia, 1950 (Code of Virginia, 15.2-2404 et seq.), as amended, and shall be bound by the procedures, notice requirements, and limitations as set forth therein.

(Ord. No. 878, 1-13-88)

 

Sec. 37-138. Payment over ten years; interest.

 

The city shall provide that persons, firms or corporations against whom the assessments have been finally made may pay such assessments in equal installments over a ten-year period together with interest on the unpaid balances at a rate not to exceed the rate of the index of the average yield on United States Treasury securities adjusted to a constant maturity of one year as made available by the Federal Reserve Bank at the time the assessment ordinance was adopted. Such installments shall become due at the same time that real estate taxes become due and payable and the amount of each installment, including principal and interest, shall be shown on the tax bill mailed, not later than fourteen (14) days prior to the installment due date, to each such person, firm, or corporation by the treasurer. Such persons, firms, or corporations may elect to prepay any or all installments of principal and interest.

State Law Reference: Code of Virginia, 15.2-2413.

 

Sec. 37-139. Postponement of payment.

 

The council may provide for postponement of the payment of such assessment by certain qualified elderly or permanently and totally disabled landowners until the sale of the property or the death of the last eligible owner. Eligibility requirements for postponement and the procedures to qualify for eligibility shall be governed by the provisions of Division 6, Article II, Chapter 37 of the Code of the City of Hampton (section 37-116, et seq.).

 

Sec. 37-140. Elizabeth Lake Estates Service District.

 

Pursuant to the Code of Virginia, Section 15.2-2400, the Elizabeth Lake Estates Service District is hereby created.

 

(1) Defined. The Elizabeth Lake Estates Service District shall consist of all residential property and common areas within the City of Hampton, Virginia, as shown by the plat of Elizabeth Lake Estates, Section One, dated May 22, 1962, and recorded in the Hampton Circuit Court Clerk's Office ("clerk's office"), on June 1, 1962, in Plat Book 4, Page 133; and the plat of Elizabeth Lake Estates, Section Two, dated August 13, 1963, recorded in the clerk's office on September 9, 1963 in Plat Book 5, page 37; and the plat of Elizabeth Lake Estates, Section Three, dated May 28, 1964, recorded in the clerk's office on June 29, 1964, in Plat Book 5, page 73; and revised on April 25, 1966, by a plat recorded in the clerk's office on August 9, 1966 in Plat Book 6, page 9; and the plat of Elizabeth Lake Estates, Section Four, dated July 29, 1964, recorded in the clerk's office on August 12, 1964, in Plat Book 5, page 83; and the plat of Elizabeth Lake Estates, Section Five, dated June 9, 1966, recorded in the clerk's office on October 18, 1966, in Plat Book 6, page 16; and the plat of Elizabeth Lake Estates, Section Six, dated January 2, 1969, recorded in the clerk's office on January 7, 1969, in Plat Book 6, Page 59; and the plat of Elizabeth Lake Estates, Section Seven, dated April 6, 1973, recorded in the clerk's office on July 6, 1973, in Plat Book 6, Page 151; and the plat of Elizabeth Lake Estates, Section Eight, dated October 22, 1981, recorded in the clerk's office on January 19, 1981, in Plat Book 7, Page 91.

 

(2) Purpose, facilities and services. Elizabeth Lake Estates has consistently been recognized as a desirable Hampton neighborhood and an asset to the city. More than two hundred thirty-four thousand (234,000) square feet of Elizabeth Lake Estates common areas bound city streets and such areas are generally accessible to the public. The city believes that the creation of the Elizabeth Lake Estates Service District benefits the public as a whole. The city believes that any benefit that may possibly inure to the Elizabeth Lake Estates Civic Association, itself as a result of the creation of this service district is merely incidental to the public benefits that are derived from the beautification, maintenance, improvement, etc. of the area. The tax levied by this section will provide a uniform and comprehensive method for collection of funds to provide services which generally enhance the public use and enjoyment of the area and the public safety, public convenience and public well-being within the service district.

 

(3) Plan for providing facilities and services within the Elizabeth Lake Estates Service District. The plan for providing such facilities and services shall be for interested entities to present a plan for the services to be rendered in the service district to city council for approval annually. Said plan shall specifically describe the services to be rendered, the cost thereof and the relationship between the service and the benefit to the service district and the public generally. Council shall approve or disapprove the plan and costs thereof and, if approved, appropriate the necessary funds for the services from any available Elizabeth Lake Estates Service District revenues, on an annual basis. The city may enter into agreements with these entities to effectuate the delivery of services in the service district and the transfer of appropriated funds. Entities receiving service district funds shall annually submit a report to city council detailing the use of service district funds which council shall review and evaluate. In addition, entities receiving service district funds shall submit to the City of Hampton, Annual Financial Statements, audited by a licensed certified public accountant, (the auditor), including the auditor's report on compliance with this section as to use and purpose of revenues, expenditures, assets, liability and residual fund balance resulting from monies provided under this ordinance; and, the auditor's report on internal controls over financial reporting and bookkeeping. The financial statements and related reports of the certified public accountants are to be provided to the city's director of finance on or before September 30th of each year.

 

Funds collected by the city as a result of this tax shall be used only in accordance with the powers enumerated in Section 15.2-2403, of the Code of Virginia, 1950, as amended and as set forth in the plan approved by city council.

 

(4) Benefits. The benefits expected from the provision of such facilities and services within the district are to provide a centralized system for addressing common issues; promote a positive image of Hampton as a desirable and outstanding place to live, protect the waterfront to maintain its viability, improve the security of the neighborhood and residents and, protect and increase property values generally.

 

(5) Tax imposed. There is hereby imposed a tax of six cents ($0.06) per one hundred dollars ($100.00) of assessed value of real property located in the above-described Elizabeth Lake Estates Service District, which tax shall be in addition to all other taxes and fees as may be imposed by law. This tax shall become effective July 1, 2001 and shall continue through June 30, 2002. For the fiscal year July 1, 2002 through June 30, 2003, the tax imposed shall be SIX CENTS ($0.06) per one hundred dollars ($100.00) of assessed value of real property located in the above-described Elizabeth Lake Estates Service District. For the fiscal year July 1, 2003 through June 30, 2004, the tax imposed shall be six cents ($0.06) per one hundred dollars ($100.00) of assessed value of real property located in the above-described service district. In subsequent fiscal years council shall annually consider the tax to be imposed as a part of the regular budget process. The tax shall be due and payable in two (2) equal installments as follows: one-half (1/2) on for before December 5 and one-half (1/2) on or before June 5.

 

(6) Valuation, assessment, and collection generally. Valuation and assessment of real property, timing with respect to valuation, assessment and payment, penalties and interest on delinquencies, abatement in the event a building is razed, destroyed or damaged or in the case of natural disaster, assessment of new construction and all other procedures for and details of the assessment, administration and collection of the tax imposed by this section shall be the same as provided for real estate taxes generally. Taxes collected pursuant to this section shall be so segregated and expended only for the purposes of the Elizabeth Lake Estates Service District.

 

(7) Severability. If any part, subsection, sentence, clause or phrase of this section of the Code is, for any reason, declared to be unconstitutional or invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this section.

(Ord. No. 1306, 6-13-01; Ord. No. 1333, 6-26-02; Ord. No. 1354, 6-11-03)

 

ARTICLE III.

PERSONAL PROPERTY TAXES*

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* Charter References: Authority of city to levy and collect taxes on tangible personal property and machinery and tools, 2.02a.

Cross References: Payment of vehicle personal property taxes prerequisite to licensing of vehicles, 21-49.

__________

 

 

 

DIVISION 1.

 

GENERALLY

 

Sec. 37-141. Exemption of certain household goods and personal effects.

 

The following classes of household goods and personal effects, when owned and used by an individual or family incident to maintaining an abode, are hereby exempted from taxation:

 

(1) Bicycles.

 

(2) Household and kitchen furniture, including gold and silver plates, plated ware, watches and clocks, sewing machines, refrigerators, automatic refrigerating machinery of any type, vacuum cleaners and all other household machinery, books, firearms and weapons of all kinds.

 

(3) Pianos, organs, and all other musical instruments; phonographs, record players, and records to be used therewith; and radio and television instruments and equipment.

 

(4) Oil paintings, pictures, statuary, curios, articles of virtu and works of art.

 

(5) Diamonds, cameos and other precious stones and all precious metals used as ornaments or jewelry.

 

(6) Sporting and photographic equipment.

 

(7) Clothing and objects of apparel.

 

(8) Antique motor vehicles as defined in Code of Virginia, 46.2-100, which may not be used for general transportation purposes.

 

(9) All other tangible personal property used by an individual or a family or household incident to maintaining an abode.

 

(Ord. No. 33; Code 1964, 39-1)

State Law References: Authority for above section, Code of Virginia 58.1-3504.

 

Sec. 37-142. Filing of return required.

 

(a) Every person owning any taxable tangible personal property in the city on January first of any year shall be assessed on such property for such taxable year and shall file a return thereof with the commissioner of revenue on forms prescribed by the commissioner. Returns for business tangible personal property and machinery and tools shall be filed on or before March first of each year. Returns for all other types of taxable tangible personal property shall be filed on or before February fifteenth of each year.

(b) Every person owning any tangible personal property or machinery and tools in the city on January 1, 1982, shall file a return thereof with the commissioner of revenue on forms prescribed by the commissioner. Such returns shall be filed on or before February fifteenth of such year.

(Ord. No. 349; Ord. No. 639, 11-14-79; Ord. No. 646, 1-23-80; Ord. No. 679, 1-28-81; Ord. No. 691, 6-24-81; Code 1964, 39-66; Ord. No. 850, 1-14-87; Ord. No. 1265, 12-8-99)

 

Sec. 37-143. Filing of depreciation schedules required.

 

Every person liable for the payment of tangible personal property tax shall file with the commissioner of revenue true copies of the depreciation schedules required by federal and state authorities which are applicable to the property subject to such tax. Every such person shall submit true copies of the depreciation schedules which most recently have been filed with federal and state authorities, either at the time he files his tangible personal property tax return with the commissioner of revenue or on or before April fifteenth of each year.

(Ord. No. 516; Ord. No. 639, 11-14-79; Code 1964, 39-66.1)

 

Sec. 37-144. Failure to file return or depreciation schedule generally; false statements therein.

 

Notwithstanding any other provisions of this article and in addition to any other penalties provided by law, any person who shall wilfully fail or refuse to file a return or a depreciation schedule, as required by sections 37-142, 37-143 and 37-154, or any person who shall knowingly make any false statement in any such return or schedule, shall be guilty of a Class 3 misdemeanor if the amount of the tax lawfully assessed in connection with the return is one thousand dollars $1,000.00 or less, or a Class 1 misdemeanor if the amount of the tax lawfully assessed in connection with the return is more than one thousand dollars ($1,000.00).

(Ord. No. 399; Ord. No. 517; Code 1964, 39-67; Ord. No. 742, 1-26-83; Ord. No. 997, 2-27-91)

Cross References: Penalty for Class 3 misdemeanor, 1-11.

State Law References: Authority for above section, Code of Virginia 58.1-3916.1.

 

Sec. 37-145. Penalty for late filing of return.

 

Any person failing to file a return required by section 37-142 or 37-154 on or before the date prescribed for such filing may incur a penalty thereon of ten (10) percent of the tax due or the sum of ten dollars ($10.00), whichever is greater, which shall be added to the amount of taxes or levies due from taxpayer; provided, however, that the penalty shall in no case exceed the amount of the tax assessable.

(Ord. No. 626, 7-25-79; Ord. No. 639, 11-14-79; Ord. No. 691, 6-24-81; Code 1964, 39-67.1; Ord. No. 742, 1-26-83; Ord. No. 997, 2-27-91)

Charter References: Authority of council to impose penalties for failure to make required returns, 6.18.

State Law References: Authority for above section, Code of Virginia 58.1-3916.

 

 

Sec. 37-146. Assessment upon failure to file return.

 

If any taxpayer liable to file a return of any of the subjects of taxation mentioned in section 37-142 or 37-154 neglects or refuses to file the same for any year within the time prescribed, the commissioner of revenue shall, from the best information he can obtain, enter the fair market value of such property and assess the same, as if it had been reported to him, and add the penalty required by section 37-145.

(Ord. No. 626, 7-25-79; Code 1964, 39-67.2; Ord. No. 742, 1-26-83)

State Law References: Code of Virginia 58.1-3519

 

Sec. 37-147. Assessments by state corporation commission.

 

(a) The assessment by the state corporation commission of the personal property of a public service corporation for the preceding year shall be taken as the assessment of such property for levying taxes and collecting the first installment thereon pursuant to this article, until the regular annual assessment of such property by the commission for the current year is completed as provided by state law. Upon the payment of the final installment of such taxes to the city by any such public service corporation, the total of such taxes for the current year shall be adjusted on the basis of the assessment by the state corporation commission for the current year.

(b) The state corporation commission may, upon the application of any public service corporation of the city filed with the commission on or before the fifteenth day of January in any year, amend its assessment for the preceding year by increasing or decreasing the same, by reason of any improvements or additions thereto, or proper deductions therefrom, or other changes affecting the assessment of the property of such corporation within the preceding year, such increases, decreases and changes to be subject to adjustment by the commission until the regular annual assessment of the property of the corporation is completed by the commission.

(Ord. No. 335; Code 1964, 39-61, 39-62)

Cross Reference: Assessor, 37-24

Sec. 37-148. When tax due and payable.

 

(a) On and after July 1, 1981, all taxes levied on personal property, except as provided under section 37-154, in the city shall become due and payable as follows:

 

(1) The first installment for the taxable period beginning January 1, 1982, and ending December 31, 1982, shall be due and payable on or before June 5, 1982.

 

(2) The second installment for the taxable period beginning January 1, 1982, and ending December 31, 1982, shall be due and payable on or before December 5, 1982.

 

(3) And so on in every year thereafter, so that personal property taxes, shall become due and payable in semiannual installments of one-half of the total tax imposed for a tax year on or before the fifth day of June and one-half on or before the fifth day of December of the calendar year for which the tax was or is imposed.

 

(b) The personal property tax covering the taxable period from July 1, 1981, through December 31, 1981, shall be due and payable on or before December 5, 1981. All provisions of law applicable to the assessment of personal property, levy, payment and collection of taxes for a regular calendar year shall apply, except as herein provided, to such short taxable period.

(Ord. No. 335; Ord. No. 639, 11-14-79; Ord. No. 691, 6-24-81; Code 1964, 39-59; Ord. No. 742, 1-26-83; Ord. No. 951, 10-11-89)

State Law References: Authority for above section, Code of Virginia, 58.1-3916.

 

Sec. 37-149. Tax bills.

 

The city treasurer shall, as soon as may be reasonably possible in each year, send by United States mail to each taxpayer assessed with personal property taxes for that year a bill or bills in the form prescribed by the state department of taxation. Except as provided in section 37-149.1 the bill or bills for personal property taxes due on June fifth shall be mailed to the taxpayer not later than May tenth and the bill or bills for personal property taxes due on December fifth shall be mailed to the taxpayer not later than November tenth.

(Ord. No. 335; Ord. No. 455; Code 1964, 39-60; Ord. No. 951, 10-11-89)

State Law Reference: Code of Virginia, 58.1-3912.

 

Sec. 37-149.1. Repealed.

 

Sec. 37-150. When taxes to be received without penalty and interest.

 

(a) The city treasurer shall commence to receive personal property taxes as soon as he receives copies of the assessments from the commissioner of revenue, which shall be no later than the first of April, and the treasurer shall continue to receive the amount due and payable for the first semiannual installment of one-half of the total tax due for the then current year, or the total amount due, if the taxpayer desires, up to and including the fifth day of June of each year, without penalty or interest. The treasurer shall also continue to receive the second semiannual installment, except as provided under section 37-154, of the remaining one-half of the total tax due for the then current year up to and including the fifth day of December of each year, without penalty or interest.

 

(b) The personal property tax covering the taxable period from July 1, 1981, through December 31, 1981, shall be received as follows: The treasurer shall commence to receive such taxes as soon as he receives copies of the assessments from the commissioner of revenue, which shall be no later than the first day of September, and the treasurer shall continue to receive the amount due and payable for the single installment of such taxable period, up to and including the fifth day of December, without penalty and interest.

(Ord. No. 335; Ord. No. 456; Ord. No. 639, 11-14-79; Ord. No. 691, 6-24-81; Code 1964, 39-63; Ord. No. 742, 1-26-83)

 

 

 

Sec. 37-151. Penalty on delinquencies.

 

(a) Any person failing to pay the first installment of personal property taxes on or before the fifth day of June or the second installment, except as provided under section 37-151.1 or 37-154, of such levies on or before the fifth day of December of the assessment year shall incur a penalty thereon of ten (10) percent of the tax due, which shall be added to the amount of taxes or levies due from such taxpayer; provided, however, that the penalty shall in no case exceed the amount of the tax assessable. Such penalty when so assessed shall become a part of the tax.

 

(b) Any person failing to pay the single installment of personal property levies for the taxable period beginning July 1, 1981, and ending December 31, 1981, on or before the fifth day of December, 1981, shall incur a penalty thereon of ten (10) percent or the sum of ten dollars ($10.00), whichever is greater, which shall be added to the amount of taxes or levies due from such taxpayer; provided, however, that the penalty shall in no case exceed the amount of the tax assessable. Such penalty when so assessed shall become a part of the tax.

(Ord. No. 339; Ord. No. 639, 11-14-79; Ord. No. 691, 6-24-81; Ord. No. 707, 12-16-81; Code 1964, 39-64; Ord. No. 742, 1-26-83; Ord. No. 783, 9-12-84)

Charter References: Authority of council to impose penalties for nonpayment of taxes, 6.18.

State Law References: Authority for above section, Code of Virginia, 58.1-3916.

 

Sec. 37-151.1. Omitted taxes and levies.

 

If the commissioner of the revenue ascertains that any local tax has not been assessed for any tax year of the three preceding tax years or that the same has been assessed at less than the law required for any one or more of such years, or that the taxes for any cause have not been realized, the commissioner of the revenue shall list and assess the same with taxes at the rate or rates prescribed for that year, adding thereto penalty and interest at the rate provided under Code of Virginia 58.3916 and 58.1-3918. Interest may be computed upon the taxes and penalty from the first day following the due date in the year in which such taxes should have been paid and shall accrue thereon from such date until payment; provided, if such assessment was necessitated through no fault of the taxpayer, such penalty and interest shall accrue after thirty days from such date of assessment until payment.

State Law Reference: Code of Virginia, 58.1-3903.

 

Sec. 37-152. Interest on delinquencies.

 

(a) Interest, at the rate of one-twelfth of nine and six-tenths (9.6) percent per month or portion of a month, from the first day of January of the year next following the assessment year shall be collected upon the principal and penalties of all personal property taxes and levies then remaining unpaid, which penalty and interest shall be collected and accounted for by the officers charged with the duty of collecting such taxes or levies, along with the principal sum thereof.

 

(b) For purposes of computing interest on any unpaid taxes due in the short year commencing July 1, 1981, and ending December 31, 1981, the beginning date shall be the first day of January of the year next following the assessment year.

(Ord. No. 335; Ord. No. 442; Ord. No. 449; Ord. No. 639, 11-14-79; Ord. No. 666, 8-27-80; Ord. No. 691, 6-24-81; Code 1964, 39-65; Ord. No. 742, 1-26-83)

State Law References: Authority for above section, Code of Virginia, 58.1-3916.

 

Sec. 37-153. How payments credited.

 

Pursuant to section 58.1-3913 of the Code of Virginia, the city treasurer shall credit any payment of personal property taxes against the most delinquent account, the collection of which is not subject to a defense of an applicable statute of limitations.

(Ord. No. 690, 6-24-81; Code 1964, 39-65.1; Ord. No. 997, 2-27-91)

State Law Reference: Code of Virginia, 58.1-3913.

 

Sec. 37-154. Special provisions relating to tax on motor vehicles, trailers and boats.

 

(a) Every person owning any motor vehicle, trailer or boat which has acquired a situs within the city after January first of any year shall be taxed on such property for the balance of the tax year. Such tax shall be pro-rated on a monthly basis and, for the purposes of pro-ration, a period of more than one-half of a month shall be counted as a full month and a period of less than one-half of a month shall not be counted. When any motor vehicle, trailer or boat loses its situs within the city after January first or after the day on which it acquires a situs (hereinafter referred to as "situs day"), the owner shall, from that time, be relieved from tax and receive a refund of the appropriate amount of tax already paid, pro-rated on a monthly basis. When any person sells or otherwise transfers title to a motor vehicle, trailer or boat with a situs in the city after January first or the situs day, the tax shall be relieved, pro-rated on a monthly basis, and the appropriate tax already paid shall be refunded. When any person, after January first or the situs day, acquires a motor vehicle, trailer or boat with a situs in the city, the tax shall be assessed on the motor vehicle, trailer or boat for the portion of the tax year during which the new owner owns the motor vehicle, trailer or boat, and has a situs within the city.

 

(b) The owner of any motor vehicle, trailer or boat acquiring situs within the city or which has its title transferred on January first shall file a return thereof with the commissioner of revenue in accordance with section 37-142. When any motor vehicle, trailer or boat acquires situs or has its title transferred after January first, a return shall be filed by the owner with the commissioner of revenue within thirty (30) days of the date on which situs is acquired or title transferred. The owner of any motor vehicle, trailer or boat acquiring situs within the city or to whom title is transferred after January first shall, within ten (10) days thereof, report the sale or transfer to the commissioner of revenue.

 

(c) Taxes on any motor vehicle, trailer or boat which acquires situs within the city or has its title transferred after January first and on or before October first of any year shall be paid on or before December fifth of the same year. Taxes on any motor vehicle, trailer or boat which acquires situs within the city or has its title transferred after October first of any year shall be paid on or before December fifth of the same year, provided the tax bills are mailed on or before November sixteenth of that year. In the event the tax bills are mailed after November sixteenth, taxes shall be paid within two (2) weeks after the tax bills are mailed.

(d) Any person failing to pay the single installment of personal property taxes for the current tax year, on or before the due date as provided above, shall incur a penalty thereon of ten (10) percent which shall be added to the amount of taxes or levies due from such taxpayer. Such penalty when so assessed shall become a part of the tax.

 

(e) An exemption from this tax and any penalties arising therefrom shall be granted for any tax share or portion thereof during which the property is legally assessed by another jurisdiction and proof is presented to the commissioner of revenue indicating that such tax on the assessed property was paid.

 

(f) All provisions of law applicable to the assessment of personal property, levy, payment and collection of taxes for a regular calendar year shall apply, except as herein provided.

 

(g) Motor vehicles, trailers and boats coming into the city from January 2, 1983, through January 31, 1983, shall be construed, for purposes of this article, to have acquired a situs for taxation in the city on February 1, 1983.

(Ord. No. 742, 1-26-83)

State Law Reference: Code of Virginia, 58.1-3516.

 

Sec. 37-155. Certain operators of marinas or boat storage places to file lists of owners of boats.

 

Every person operating in this city a marina or boat storage place which accommodates more than four (4) boats shall, on or before February 1of each year, upon the request of the commissioner of revenue, file with the commissioner a list giving the name and address of the owner and operator, if such is available, and the name and number of each boat physically located and normally kept at the marina or boat storage place as of the preceding January 1. The list shall be divided into the following three categories: (i) watercraft which are eighteen (18) feet and over; (ii) watercraft which are under eighteen (18) feet and motorized; and (iii) watercraft which are under eighteen (18) feet and nonmotorized. Violators of this section shall be guilty of a Class 4 misdemeanor.

(Ord. No. 836, 9-10-86)

State Law Reference: Code of Virginia 58.1-3902.

 

Sec. 37-155.01. Apartment house, office building, shopping center, trailer camp, trailer court, marina, or airport owners or operators to file lists of tenants.

 

Every person owning or operating any apartment house or any office building or shopping center or any trailer camp or trailer court or marina or privately owned or operated airport in the city shall, on or before February 1 of each year, upon request of the commissioner of the revenue, file with the commissioner of the revenues a list giving the name and address of every tenant of such apartment house, office building, shopping center, trailer camp, or trailer court, and the name and address of every person renting space in a marina for waterborne craft and at a privately owned or operated airport for airborne craft as of the preceding January 1. Any person failing to comply with this section shall be guilty of a Class 4 misdemeanor.

State Law Reference: Code of Virginia 58.1-3901.

 

Sec. 37-155.1. Personal property tax relief; amount of reimbursement.

 

In accordance with Code of Virginia 58.1-3523 et. seq., and subject to the limitations stated therein, the amount of reimbursement to taxpayers beginning calendar tax year 2006 shall be:

 

(1) One hundred (100) percent of the reimbursable amount for qualifying vehicles used for non-business purposes with a value of one thousand dollars ($1,000.00) or less; and

 

(2) The reimbursable amount for qualifying vehicles used for non-business purposes with a value of more than one thousand dollars ($1,000.00) shall be based on the application of the remaining Personal Property Tax Relief Act (Code of Virginia, 58.1-3523 et seq.) reimbursement from the Commonwealth of Virginia to the projected personal property tax book value for each tax year.

 

Reimbursable amount means the value of a qualifying vehicle up to the first twenty thousand dollars ($20,000.00) of value multiplied by the effective tax rate adopted annually.

(Ord. No. 1402, 5-11-05)

State Law Reference: Code of Virginia, 58.1-3523, et. seq.

 

DIVISION 2.

 

OTHER CLASSIFICATION OF TANGIBLE PERSONAL PROPERTY*

 

A. MOTOR VEHCILES SPECIALLY EQUIPPED TO PROVIDE TRANSPORTATION FOR PHYSICALLY HANDICAPPED INDIVIDUALS

__________

* State Law References: Authority for this division, Code of Virginia, 58.1-3506.

__________

 

Sec. 37-156. Definitions.

 

When used in this division the phrase "motor vehicles specially equipped to provide transportation for physically handicapped individuals" refers to motor vehicles adapted with any of the following devices:

 

(1) Power door operators.

 

(2) Hand controls.

 

(3) Lifts or ramps for wheelchairs or scooters.

(4) Special restraints systems for wheelchairs.

 

(5) Raised door and roof to allow wheelchair entry.

 

(6) Special steering devices such as but not limited to "tri-pins" or "V-grips."

 

(7) Driving aids such as but not limited to touchpads, low effort power steering, power steering back up, power parking brake or electronic directional signals.

 

(8) Roll cages.

(Ord. No. 1010, 5-1-91)

 

Sec. 37-157. Authorized.

 

There is hereby established a special classification for motor vehicles specially equipped to provide transportation for physically handicapped individuals. In any year, the council may levy a tax on the property enumerated in this division at different rates from the tax levied on other tangible personal property. The rate of tax and the rates of assessment shall not exceed that applicable to the general class of tangible personal property.

(Ord. No. 1010, 5-1-91)

 

Sec. 37-158. Application.

 

A person seeking special classification of a vehicle authorized pursuant to this division shall file an application with the commissioner of revenue on such forms as the commissioner shall prescribe.

(Ord. No. 1010, 5-1-91)

 

Sec. 37-159. General prerequisites to grant; filing process.

 

(a) The special classification provided for in this division shall be granted if the following conditions are met:

 

(1) The motor vehicle must be specially equipped to provide transportation for physically handicapped individuals and must have situs in this city.

 

(2) Applicant must be legal owner of the vehicle.

 

(3) Applicant must file or have filed a current personal property application for vehicle license and tax return.

 

(4) Applicant must complete and file for a approval a certification form with the office of the commissioner of revenue.

(5) Vehicle must be appraised by the office of the commissioner of revenue.

 

(6) Applicant must complete the filing process each year prior to February 15.

 

(b) The applicant may apply for the special classification for more than one (1) vehicle.

(c) The applicant must notify the office of the commissioner of revenue in writing upon termination of eligibility for the special classification.

(Ord. No. 1010, 5-1-91)

 

Sec. 37-160. Duration.

 

The applicant must complete the filing process each year for recertification, otherwise the special class certification will automatically be removed.

(Ord. No. 1010, 5-1-91)

State Law Reference: Code of Virginia, 58.1-3506.1.

 

B. MOTOR VEHICLES OWNED AND REGULARLY USED BY DISABLED VETERANS

 

Sec. 37-161. Definitions.*

 

When used in this division, the phrase disabled veterans shall mean any veteran who has either lost, or lost the use of one or both legs, or an arm or a hand, or who is blind or who is permanently and totally disabled as certified by the Department of Veterans Services.

 

Sec. 37-162. Authorized.

 

There is hereby established a separate classification for motor vehicles owned and regularly used by disabled veterans. In any year, the council may levy a tax on the property enumerated in this division at different rates from the tax levied on other tangible personal property. The rate of tax and the rates of assessment shall not exceed that applicable to the general class of tangible personal property.

 

Sec. 37-163. Qualification.

 

(a) In order to qualify, the veteran shall provide a written statement to the commissioner of revenue from the Department of Veterans Services that the veteran has been so designated or classified by the Department of Veterans Services that the veteran has been so designated or classified by the Department of Veterans Services as to meet the requirements of this division, and that his disability is service-connected. For purposes of this division, a person is blind if he meets the provisions of Virginia Code 46.2-739, as amended.

 

(b) A qualifying disabled veteran may have no more than one motor vehicle assessed pursuant to this section.

 

Secs. 37-16437-165. Reserved.

 

State Law References: Authority for above sections, Code of Virginia, 58.1-3506 and 46.2-100.

 

ARTICLE IV.

 

RETAIL SALES TAX

Sec. 37-166. Levied; rate; etc.

 

There is hereby levied and imposed, in addition to all other taxes and fees of every kind now imposed, a general retail sales tax, at the rate of one percent, to provide revenue for the general fund of the city. The rate of the tax shall be added to the rate of the state retail sales tax imposed by chapter 6, title 58.1, of the Code of Virginia (Virginia Retail Sales and Use Tax Act, Code of Virginia, 58.1-600 et seq.) and shall be subject to all the provisions of such chapter, all amendments thereof and the rules and regulations published with respect thereto, except that no discount under section 58.1-622 of the Code of Virginia shall be allowed on the tax levied by this section.

(Ord. No. 187, 1; Ord. No. 190; Code 1964, 39-51; Ord. No. 997, 2-27-91)

State Law References: Authority for above section, Code of Virginia, 58.1-605.

 

Sec. 37-167. Exemption for fuel oil.

 

Fuel oil used for domestic consumption and delivered to residential customers is exempt from the one percent tax imposed in section 37-166.

(Ord. No. 791, 1-23-85; Ord. No. 997, 2-27-91)

State Law References: Authority for exemptions listed, Code of Virginia, 58.1-609.13.

 

Secs. 37-168--37-180. Reserved.

 

ARTICLE V.

 

BANK FRANCHISE TAX

 

Sec. 37-181. "Bank" defined.

 

For the purpose of this article, the word "bank" shall have the same meaning ascribed to it in section 58.1-1201 of the Code of Virginia.

(Code 1956, 21-15; Ord. No. 77; Ord. No. 99; Ord. No. 123; Ord. No. 652, 3-26-80; Code 1964, 39-28; Ord. No. 997, 2-27-91)

 

Sec. 37-182. Levied; amount.

 

For the calendar year commencing January 1, 1980, and each calendar year thereafter, there is hereby levied against each bank located in the city a tax at the rate of one dollar ($1.00) on each one hundred dollars ($100.00) of the bank's net capital, as defined in section 58.1-1205 of the Code of Virginia. If any bank located in the city has one or more offices located in any other political subdivision the tax shall be apportioned as provided in section 58.1-1211 of the Code of Virginia.

 

Any bank which did not operate for the entire twelve-month period preceding the January 1 assessment date, shall be entitled to a prorated tax rate as follows as provided in section 58.1-1204.1 of the Code of Virginia:

 

1. Transacting business as of March 31 of the preceding year, no proration shall be available and the tax rate shall be one dollar ($1.00) on each one hundred dollars ($100.00) of net capital.

 

2. Transacting business as of June 30 of the preceding year but not before April 1, the tax rate shall be seventy-five cents ($0.75) on each one hundred dollars ($100.00) of net capital.

 

3. Transacting business as of September 30 of the preceding year but not before July 1, the tax rate shall be fifty cents ($0.50) on each one hundred dollars ($100.00) of net capital.

4. Transacting business as of December 31 of the preceding year but not before October 1, the tax rate shall be twenty-five cents ($0.25) on each one hundred dollars ($100.00) of net capital

 

Transacting business shall mean accepting deposits from customers in the regular course of doing business. A bank shall be eligible for the prorated tax rate provided for hereunder with respect to the first return it is required to file after accepting deposits; provided, that a bank shall not be eligible for the prorated tax rate if it was organized or created as part of a reorganization with the meaning of 368(a) of the Internal Revenue Code.

(Code 1956, 21-16; Ord. No. 77; Ord. No. 99; Ord. No. 123; Ord. No. 151; Ord. No. 182; Ord. No. 618, 5-23-79; Ord. No. 652, 3-26-80; Code 1964, 39-29; Ord. No. 997, 2-27-91)

State Law References: Code of Virginia, 58.1-1204 and 58.1-1204.1; Authority for above tax, Code of Virginia, 58.1-1208.

 

Sec. 37-183. Bank's return and report.

 

Each bank located within the city shall deliver to the commissioner of revenue the return and the report which are required by sections 58.1-1207 and 58.1-1212 of the Code of Virginia.

(Code 1958, 21-17; Ord. No. 77; Ord. No. 99; Ord. No. 123; Ord. No. 652, 3-26-80; Code 1964, 39-30; Ord. No. 997, 2-27-91)

 

Sec. 37-184. Payment.

 

Every bank located in the city shall, on or before the first day of June in each year, pay into the city treasury the tax assessed under this article and the city treasurer shall give to such bank paying such taxes an authenticated receipt.

(Code 1956, 21-19; Ord. No. 77; Ord. No. 99; Ord. No. 123; Ord. No. 652, 3-26-80; Code 1964, 39-32)

 

Sec. 37-185. Failure or neglect of bank to comply with article.

 

Any bank which shall fail or neglect to comply with any provision of this article shall be subject to a penalty of five percent (5%) of the tax due, which penalty shall be recovered, upon motion, after five (5) days' notice, in the circuit court of the city. The motion shall be in the name of the city and shall be presented by the city attorney.

State Law References: Penalty with respect to state tax, Code of Virginia, 58.1-1216.

 

Secs. 37-186--37-200. Reserved.

 

ARTICLE VI.

 

UTILITY SERVICES*

__________

* Editors Note: Ord. Nos. 1286 and 1287, both adopted Oct. 11, 2000, amended Ch. 37, Art. VI to read as herein set out. Prior to said amendment, Art. VI pertained to a tax on purchasers of utility services and was derived from Ords. 70, 127, 130, 131, 169, 316, and 518; from Code 1964, 39-17--39-27; and from the following ordinances:

 

Ord. No.

Date

Ord. No.

Date

806

9-25-85

822

5-14-86

1082

5-14-93

1088

5-12-93

1120

5-11-94

1182

5-14-97

1202

1-14-98

 

 

__________

 

DIVISION 1.

 

TAX ON PURCHASERS OF ELECTRIC AND NATURAL GAS UTILITY SERVICES

 

Sec. 37-201. Definitions.

 

The following words and phrases, when used in this division, shall have the following respective meanings, except where the context clearly indicates otherwise:

 

All other classes of consumers means a consumer of natural gas or electric utility service provided to property used primarily for purposes other than commercial, industrial or residential as classified by the utility service provider.

 

CCF means a volume of gas at standard pressure and temperature in units of one hundred (100) cubic feet.

 

Commercial consumer means a consumer of natural gas or electric utility service provided to property used primarily for commercial purposes as classified by the utility service provider.

 

Consumer means every person who, individually or through agents, employees, officers, representatives or permittees, makes a taxable purchase of electricity or natural gas services.

 

Electric utility means a public utility authorized to furnish electric service to consumers in the Commonwealth of Virginia.

 

Gas utility means a public utility authorized to furnish natural gas service to consumers in the Commonwealth of Virginia.

 

Industrial consumer means a consumer of natural gas or electric utility service provided to property used primarily for industrial purposes as classified by the utility service provider.

 

kWh (kilowatt hours) means one thousand (1,000) watts of electricity delivered in a one-hour period by an electric service provider to a consumer, except that in the case of eligible customer-generators (sometimes called cogenerators) as defined in Code of Virginia, section 56-594, as amended, it means the kilowatt hours supplied from the electric grid to such customer-generators, minus the kilowatt hours generated and fed back to the electric grid by such customer-generators.

 

Person means an individual, partnership or limited liability partnership, company or limited liability company, corporation, or any other legal entity.

 

Pipeline distribution company means a person, other than a pipeline transmission company which transmits, by means of a pipeline, natural gas, manufactured gas or crude petroleum and the products or byproducts thereof to a consumer for purposes of furnishing heat, light or power.

 

Provider of billing services shall have the same meaning as service provider.

 

Residential consumer means a consumer of natural gas or electric utility service provided to property used primarily for residential purposes as classified by the utility service provider.

 

Service provider means every person who delivers and/or bills for utility service to a consumer.

 

Used primarily relates to the larger portion of the use for which electric or natural gas utility service is furnished.

 

Utility service means the provision of electricity and natural gas for consumption by consumers.

(Ord. No. 1286, 10-11-00)

 

 

 

Sec. 37-202. Electric consumer utility tax levied; amount.

 

In accordance with Code of Virginia, section 58.1-3814, effective January 1, 2001, there is hereby imposed and levied a monthly tax, on a "per meter" basis, on each purchase of electricity delivered to consumers by a service provider in the following classes, as defined by the service provider, as follows:

 

(1) Residential consumers. Such tax shall be one dollar forty cents ($1.40) plus the rate of $0.014953 on each kWh delivered monthly to residential consumers by a service provider not to exceed three dollars ($3.00) per month.

 

(2) Commercial consumers. Such tax shall be two dollars twenty-nine cents ($2.29) plus the rate of $0.013953 on each of the first two thousand seven hundred three (2,703) kWh delivered monthly to commercial consumers by a service provider, and $0.003321 on each kWh delivered thereafter, not to exceed eighty dollars ($80.00) per month.

 

(3) Industrial consumers. Such tax shall be two dollars twenty-nine cents ($2.29) plus the rate of $0.015498 on each of the first two thousand four hundred thirty-three (2,433) kWh delivered monthly to industrial consumers by a service provider, and $0.004835 on each kWh delivered thereafter, not to exceed eighty dollars ($80.00) per month.

 

(4) All other classes of consumers. Such tax shall be two dollars twenty-nine cents ($2.29) plus the rate of $0.015498 on each of the first two thousand four hundred thirty-three (2,433) kWh delivered monthly to all other consumers by a service provider, and $0.004835 on each kWh delivered thereafter, not to exceed eighty dollars ($80.00) per month.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-203. Natural gas consumer utility tax levied; amount.

 

In accordance with Code of Virginia, section 58.1-3814, there is hereby imposed and levied a monthly tax, on a "per meter" basis, on each purchase of natural gas delivered to consumers by pipeline distribution companies and gas utilities, classified by "class of consumers" as such term is defined in Code of Virginia, section 58.1-3814(J), as follows:

 

(1) Residential consumers. Such tax shall one dollar ninety-eight ($1.98) plus the rate of $0.191 on each CCF delivered monthly to residential consumers by a service provider not to exceed two dollars forty cents ($2.40) per month.

 

(2) Commercial consumers. Such tax shall be two dollars seventy-eight cents ($2.78) plus the rate of $0.135199 on each of the first one hundred thirty (130) CCFs delivered monthly to commercial consumers by a service provider, and $0.032578 on each CCF thereafter, not to exceed sixty-five dollars ($65.00) per month.

 

(3) Industrial consumers. Such tax shall be two dollars seventy-eight cents ($2.78) plus the rate of $0.135199 on each of the first one hundred thirty (130) CCFs delivered monthly to industrial consumers by a service provider, and $0.032578 on each CCF thereafter, not to exceed sixty-five dollars ($65.00) per month.

 

(4) All other classes of consumers. Such tax shall be two dollars seventy-eight cents ($2.78) plus the rate of $0.135199 on each of the first one hundred thirty (130) CCFs delivered monthly to all other consumers by a service provider, and $0.032578 on each CCF thereafter, not to exceed sixty-five dollars ($65.00) per month.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-204. Exemptions.

 

The United States of America, diplomatic personnel exempted by the laws of the United States, the state and the political subdivisions, boards, commissions and the authorities and agencies thereof, are hereby exempt from the payment of the tax imposed and levied by this division with respect to the purchase of utility services used by such governmental agencies.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-205. Duty of service provider to bill, collect and remit tax.

 

(a) The service provider shall (i) bill the consumer utility tax to all consumers who are subject to the tax and to whom it delivers utility services, and (ii) report and remit the same to the commissioner of the revenue on or before the last day of the succeeding month of collection. Until the consumer pays the tax to such service provider, the tax shall constitute a debt of the consumer to the locality. Upon payment by the consumer to the service provider, the tax shall constitute a debt of the service provider to the locality, and the service provider shall hold such receipts in trust as a fiduciary for and on behalf of the city.

 

(b) If any consumer receives and pays for utility services but refuses to pay the consumer utility tax stated on the bill, the service provider shall notify the commissioner of the revenue in writing of the name and address of each such consumer and the amount of delinquent taxes owed by that consumer within forty-five (45) days after the failure of the consumer to pay the tax. It shall be the duty of the commissioner of the revenue to assess taxes reported by the service provider as unpaid under this division against the consumer, together with a penalty of five (5) percent of the delinquent tax owed but not less than one dollar ($1.00). These assessments shall be turned over to the city treasurer, who shall collect the taxes and penalties in the same manner as other delinquent taxes are collected.

 

(c) If any consumer fails to pay the entire bill issued by a service provider, including the consumer utility tax, the service provider shall follow its normal collection procedures with respect to the charge for utility service and the tax, and upon collection of the bill or any part thereof shall (i) apportion the net amount collected between the charge for the utility service and the tax and (ii) report and remit the tax portion to the commissioner of the revenue. After the consumer pays the tax to the service provider, the taxes shall be deemed to be held in trust by such service provider until reported and remitted to the commissioner of the revenue. Delinquent taxes determined uncollectible by the service provider shall be reported, assessed and collection attempted as provided in subsection (b) of this section.

 

(d) All remittances received by the commissioner of the revenue shall be promptly turned over to the city treasurer.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-206. Service provider records.

 

Each and every service provider shall keep complete and accurate service and accounting records using generally accepted accounting principles and practices, which records shall indicate the consumption utilized by each consumer, the dates of such consumption, the date of billing and payment for utility services provided, and the amount of all billings and payments of the consumer utility taxes imposed pursuant to this division. Such records shall be kept open for inspection by and access provided to duly authorized agents of the city during the city's normal business hours for a period of four (4) years from the date such record was created; and such agents of the city shall have the right, power and authority to make such transcripts thereof during such times as the records are inspected.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-207. Computation tax for bills not on monthly basis.

 

Bills shall be considered as monthly bills for the purposes of this division if submitted twelve (12) times per year of approximately one month each. The tax for a bimonthly bill (approximately sixty (60) days) shall be determined as follows: (i) the kWh or CCF reflected on the bill will be divided by two (2); (ii) a monthly tax will be calculated using the rates set forth in this division; (iii) the tax determined by step (ii) shall be multiplied by two (2) which shall equal the applicable tax; however, (iv) the tax calculated in step (iii) may not exceed twice the monthly "not to exceed" amount.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-208. Duties of city treasurer.

 

The city treasurer shall be charged with the duty of collecting the taxes imposed and levied under this division.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-209. Powers of the commissioner of the revenue.

 

The commissioner of the revenue may prescribe forms for the filing of any report or the payment of any funds set forth in this division and may make and establish rules and regulations, not inconsistent with this division, to help carry out the provisions of this division.

(Ord. No. 1286, 10-11-00)

 

 

Sec. 37-210. Penalties.

 

(a) Any person who willfully fails to bill, collect, remit or truthfully account for and pay over to the city treasurer the consumer utility tax as provided in this division, or who willfully attempts in any manner to evade or defeat any such tax, or the billing, collection or remittance thereof, shall, in addition to any other penalty provided by law, be guilty of a Class 1 misdemeanor. Each such failure, refusal, neglect or violation shall constitute a separate offense.

 

(b) Any person who willfully fails to bill, collect, remit or truthfully account for and pay over to the city treasurer the consumer utility tax as provided in this division, or who willfully attempts in any manner to evade or defeat any such tax, or the billing, collection or remittance thereof, shall, in addition to all other penalty provided by law, be liable to the city for a penalty in an amount equal to such tax.

 

(c) The term "person" as used in this section specifically includes any officer, agent and employee of any person as defined in this division who is under a duty to perform on behalf of that person the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

 

(d) A criminal conviction pursuant to this section shall not relieve any such person from the payment, collection and remittance of the tax as otherwise provided in this division.

(Ord. No. 1286, 10-11-00)

 

Sec. 37-211. Penalty for late remittance or false return.

 

If any person, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this division, within the time and in the amount specified in this division, there shall be added to such tax by the commissioner of revenue a penalty in the amount of ten (10) percent, if the failure is for not more than thirty (30) days, with an additional five (5) percent for each additional thirty (30) days or fraction thereof during which the failure continues, not to exceed twenty-five (25) percent in the aggregate, with a minimum penalty of ten dollars ($10.00), but in no event shall the penalty exceed the amount of the tax assessable. In addition, interest at the rate of ten (10) percent per annum may be computed and collected upon the taxes and penalty beginning from the date such taxes were due and payable.

State Law Reference: Code of Virginia, 58.1-3916.

 

Secs. 37-21237-213. Reserved.

 

DIVISION 2.

 

TAX ON PURCHASERS OF LOCAL EXCHANGE TELEPHONE SERVICE

 

 

 

Sec. 37-214. Definitions.

 

The following words and terms, when used in this division, shall, for the purposes of this division, have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

 

Commercial or industrial. The phrase "commercial or industrial" shall include, in addition to the normal word usage, buildings having a central telephone switchboard furnishing telephone service to two (2) or more dwelling units.

 

Purchaser. The word "purchaser" shall include every person who purchases local exchange telephone service.

 

Seller. The word "seller" shall include every person, whether a public service corporation or a municipality or private corporation or not, who sells or furnishes local exchange telephone service.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-215. Levied, amount.

 

(a) There is hereby imposed and levied by the city, upon each and every purchaser of a local exchange telephone service, a tax for general purposes in the following amounts:

 

(1) On purchasers of local exchange telephone service for residential purposes, the tax shall be in the amount of twenty (20) percent of the charge (exclusive of any federal or state tax thereon) made by the seller against the purchaser with respect to such residential telephone service; provided, however, that in any case where a monthly bill submitted by the seller for residential purposes shall exceed fifteen dollars ($15.00), there shall be no tax computed on so much of such bill as shall exceed fifteen dollars ($15.00).

 

(2) On purchasers of local exchange telephone service for commercial or industrial purposes, the tax shall be in the amount of twenty (20) percent of the charge (exclusive of any federal or state tax thereon) made by the seller against the purchaser with respect to such commercial or industrial telephone service; provided, however, that in any case where a monthly bill submitted by the seller for commercial or industrial purposes shall exceed three hundred dollars ($300.00), there shall be no tax computed on so much of such bill as shall exceed three hundred dollars ($300.00).

 

(3) On purchasers of local telecommunication service at a rate equal to ten (10) percent of the monthly gross charged to a consumer of local mobile telecommunication and shall not be applicable to any amount so charged in excess of thirty dollars ($30.00) per month for each mobile service consumer. This tax shall take effect September 1, 1994, and shall be included on bills sent to consumers on or after that date.

(b) For the purposes of this section, bills shall be considered monthly bills if submitted twelve (12) times annually for a period of approximately one month or portion thereof. In case bills are submitted by any seller for two (2) months' service, there shall be no tax computed on so much of such bill as shall exceed thirty dollars ($30.00) for local exchange telephone service rendered for residential purposes; six hundred dollars ($600.00) for local exchange telephone service rendered for commercial or industrial services. In the event such bills are rendered on a basis other than one month or two (2) months, the tax imposed hereby shall be computed pro rata as if such bill was rendered on a monthly basis, with the rates and the maximums named herein applied.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-216. Applicability generally.

 

The tax imposed and levied by this division on purchasers with respect to local exchange telephone services shall apply to all charges made for local telephone exchange service, except as follows:

 

(1) The total amount of the guaranteed charge on each bill rendered for semipublic coin box telephone service shall be included in the basis for the tax with respect to the purchaser of such service, but no other tax shall be imposed on telephone service paid for by inserting coins in coin-operated telephones.

 

(2) With respect to flat rate and flat message rate service, the tax shall apply only to the amount payable for local area service and shall not apply to any specific charge for calls to points outside the city or to any general charge or rate differential payable for the privilege of calling points outside the city.

 

(3) Where purchasers of telephone service are charged on a message rate basis, the tax shall apply only to the basic charge for such service and shall not apply to any charge for additional message units.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-217. Exemptions.

 

The United States of America, diplomatic personnel exempted by the laws of the United States, the state and the political subdivisions, boards, commissions and the authorities and agencies thereof, are hereby exempt from the payment of the tax imposed and levied by this division with respect to the purchase of local exchange telephone services used by such governmental agencies.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-218. Computation when seller collects charges periodically.

 

In all cases where the seller collects the price for local exchange telephone service in stated periods, the tax imposed and levied by this division shall be computed on the amount of purchase during the month or period according to each bill rendered, provided the amount of tax to be collected shall be the nearest whole cent to the amount computed.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-219. Duty of seller to collect, report and remit.

 

(a) It shall be the duty of every seller, in acting as the tax collection medium or agency for the city, to collect from the purchaser, for use of the city, the taxes imposed and levied by this division, at the time of collecting the purchase price charged for the service. The taxes so collected during each calendar month or billing period shall be reported and paid by each seller to the commissioner of the revenue on or before the last day of the succeeding month of collection. Such report shall include the name and address of any purchaser who has refused to pay such tax.

 

(b) The commissioner of the revenue may extend, for good cause shown, the time of filing a return required to be filed by the provisions of this section; provided, however, that no such extension shall exceed a period of ninety (90) days.

 

(c) All remittances received hereunder by the commissioner of the revenue shall be promptly turned over to the treasurer.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-220. Seller's records.

 

Each seller of local exchange telephone service shall keep complete records showing all purchases of such service in the city, which records shall show the price charged against each purchaser with respect to each purchase, the date thereof and the date of payment thereof and the amount of tax imposed under this division. Such records shall be kept open for inspection by the duly authorized agents of the city during regular business hours on business days, and the duly authorized agents of the city shall have the right, power and authority to make such transcripts thereof, during such times, as they may desire.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-221. Duties of city treasurer.

 

The city treasurer shall be charged with the duty of collecting the taxes imposed and levied under this division.

(Ord. No. 1287, 10-11-00)

 

Sec. 37-222. Powers of the commissioner of the revenue.

 

The commissioner of the revenue may prescribe forms for the filing of any report or the payment of any funds set forth in this division and may make and establish rules and regulations, not inconsistent with this division, to help carry out the provisions of this division.

(Ord. No. 1287, 10-11-00)

 

 

Sec. 37-223. Failure of purchaser to pay; violations of division by seller.

 

Any purchaser failing, refusing or neglecting to pay the tax imposed or levied by this division and any seller violating the provisions of this division, and any officer, agent or employee of any seller violating the provisions of this division, shall be guilty of a Class 2 misdemeanor. Each failure, refusal, neglect or violation and each day's continuance thereof shall constitute a separate offense. Conviction for such violation shall not relieve any person from the payment, collection and remittance of such tax as provided in this division

(Ord. No. 1287, 10-11-00)

 

Sec. 37-224. Additional tax on telephone service to establish and maintain an E-911 emergency telephone system.

 

(a) In addition to any tax heretofore imposed and levied by this division, there shall be further imposed and levied upon all purchasers of local exchange telephone service in the city a monthly tax of thirty-nine cents ($0.39) per telephone line from December 1, 1985, through February 28, 1987, twenty-four cents ($0.24) per telephone line from March 1, 1987 through June 30, 1993, and one dollar and forty-four cents ($1.44) per telephone line from July 1, 1993, through June 30, 1997, two dollars and fifty cents ($2.50) per telephone line from July 1, 1997 through September 30, 2003, and two dollars and sixty cents ($2.60) per telephone line on and after October 1, 2003. Each telephone line having a separate telephone or trunk line shall be considered a separate line.

 

(b) Each and every seller of local exchange telephone service shall be allowed three (3) percent of the amount of tax due and accounted for in the form of a deduction in submitting the return and paying the amount due by it.

 

(c) All taxes collected pursuant to this section shall first be used to defray the costs of establishing an enhanced 911 (E-911) emergency telephone system as defined in this section. After the costs of establishing the E-911 system have been met, all taxes collected pursuant to this section shall be used to defray the costs of maintaining the system. All taxes collected pursuant to this section shall be kept separate from any other funds collected by the treasurer.

 

(d) For the purposes of this section, an "E-911" system means a telephone service which utilizes a computerized system to automatically route emergency telephone calls placed by dialing the digits "911" to the proper public safety answering point serving the jurisdiction from which the emergency telephone call was placed. An E-911 system includes selective routing of telephone calls, automatic telephone number identification, and automatic location identification performed by computers and other ancillary control center communications equipment.

 

(e) For the purposes of this section, "public safety answering point" means a communications facility operated on a twenty-four-hour basis which receives E-911 calls from persons in an E-911 service area and which may, as appropriate, directly dispatch public safety services or extend, transfer, or relay E-911 calls to appropriate public safety agencies.

 

(f) For the purposes of this section, "public safety agency" means a functional division of a public agency which provides fire-fighting, police, medical, or other emergency services or a private entity which provides such services on a voluntary basis.

(g) For the purposes of this section, a "trunk" means a line that connects an on-premises telephone system to a telephone company central office.

 

This section shall be effective and the change applied to billing cycles on and after October 1, 2003. The commissioner of the revenue is directed, pursuant to Virginia Code Section 58.1-3812, to provide written notice immediately after adoption of this ordinance by certified mail to the registered agent of the service providers that are required to collect this tax.

(Ord. No. 1287, 10-11-00; Ord. No. 1351, 5-14-03)

 

Sec. 37-225. Public rights-of-way use fee.

 

(a) That notwithstanding any other provision of law, including its Charter or any other ordinance or resolution, franchise or provision of law heretofore adopted, the City of Hampton hereby imposes a public rights-of-way use fee provided for in section 56-468.1 of the Code of Virginia, effective July 1, 2001.

 

(b) The calculation, collection and remittance of said fee by certified providers of local exchange telephone service within the city shall commence as of the fiscal year starting July 1, 2001, in accordance with the provisions of Section 56-468.1 of the Code of Virginia.

 

(c) That the fees generated by this division will be used exclusively for capital improvement projects throughout the City of Hampton.

(Ord. No. 1298, 5-9-01)

 

ARTICLE VII.

 

TAX ON FOOD AND BEVERAGES SOLD BY FOOD ESTABLISHMENTS*

__________

* Cross References: Food establishments, Ch. 15.

State Law Reference: Code of Virginia 58.1-3840.

__________

 

Sec. 37-226. Definitions.

 

The following words and phrases, when used in this article, shall have, for the purposes of this article, the following respective meanings except where the context clearly indicates a different meaning:

 

Cater. The furnishing of food, beverages, or both on the premises of another, for compensation.

 

Collector. The Commissioner of Revenue or designee.

 

Commissioner. The Commissioner of Revenue and any duly designated deputies, assistants, inspector or other employees.

 

Food. All food, beverages or both, including alcoholic beverages, purchased in or from a food establishment, whether prepared in such food establishment or not, and whether consumed on the premises or not, and without regard to the manner, time or place of service.

 

Food establishment. Any place in or from which food or food products are prepared, packaged, sold or distributed in the city, including, but not limited to, any restaurant, dining room, grill, coffee shop, cafeteria, cafe, snack bar, lunch counter, convenience store, movie theater, delicatessen, confectionery, bakery, eating house, eatery, drugstore, ice cream/yogurt shops, lunch wagon or truck, pushcart or other mobile facility from which food is sold, public or private club, resort, coliseum, bar, lounge, or other similar establishment, public or private, and shall include private property outside of and contiguous to a building or structure operated as a food establishment at which food or food products are sold for immediate consumption.

 

Meal. Meal shall mean any prepared food or drink offered or held out for sale by a food establishment for the purpose of being consumed by any person to satisfy the appetite and is ready for immediate consumption. All such food and beverage, unless otherwise specifically exempted or excluded herein shall be included, whether intended to be consumed on the seller's premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper or by some other name, and without regard to the manner, time or place of service.

 

Purchaser. Any person who purchases food or food products or both.

 

Seller. Any person who sells food or food products or both.

(Code 1964, 39-115; Ord. No. 566, 4-17-78; Ord. No. 699, 7-22-81; Ord. No. 1206, 2-25-98; Ord. No. 1282, 6-21-00)

 

Sec. 37-227. Levied; amount.

 

There is hereby imposed and levied by the city, in addition to all other taxes, fees and charges of every kind now or hereafter imposed by law, upon all food and beverages sold in the city in or from a food establishment a tax in accordance with the following brackets of charges and schedule of taxes applicable thereto:

 

Brackets of Charges

Schedule of Taxes

$0.01 to $0.07....

No Tax

$0.08 to $0.23....

$0.01

$0.24 to $0.38....

$0.02

$0.39 to $0.53....

$0.03

$0.54 to $0.69....

$0.04

$0.70 to $0.84....

$0.05

$0.85 to $0.99....

$0.06

$1.00 to $1.15....

$0.07

$1.16 to $1.30....

$0.08

$1.31 to $1.46....

$0.09

$1.47 to $1.61....

$0.10

$1.62 to $1.76....

$0.11

$1.77 to $1.92....

$0.12

$1.93 to $2.07....

$0.13

$2.08 to $2.23....

$0.14

$2.24 to $2.38....

$0.15

$2.39 to $2.53....

$0.16

$2.54 to $2.69....

$0.17

$2.70 to $2.84....

$0.18

$2.85 to $2.99....

$0.19

$3.00 to $3.15....

$0.20

$3.16 to $3.30....

$0.21

$3.31 to $3.46....

$0.22

$3.47 to $3.61....

$0.23

$3.62 to $3.76....

$0.24

$3.77 to $3.92....

$0.25

$3.93 to $4.07....

$0.26

$4.08 to $4.23....

$0.27

$4.24 to $4.38....

$0.28

$4.39 to $4.53....

$0.29

$4.54 to $4.69....

$0.30

$4.70 to $4.84....

$0.31

$4.85 to $4.99....

$0.32

On charges five dollars ($5.00) and over, the tax shall be a sum equal to six and one-half (6 1/2) percent of the charge, one-half cent or more being treated as one cent ($0.01).

(Code 1964, 39-116; Ord. No. 566, 4-12-78; Ord. No. 936, 5-10-89; Ord. No. 1085, 5-12-93; Ord. No. 1206, 2-25-98; Ord. No. 1274, 5-10-00; Ord. No. 1282, 6-21-00; Ord. No. 1295, 5-9-01; Ord. No. 1313, 7-11-01)

Charter References: Authority of city to levy and collect taxes on purchase of meals at restaurants, 2.02a.

 

Sec. 37-228. Exemptions; limits on application.

 

(a) The tax imposed under this article shall not be levied on the following items when served exclusively for off-premises consumption:

 

(1) Factory-prepacked donuts, ice cream, candy, gum, nuts, crackers, nabs, chips, cookies and items of essentially the same nature;

 

(2) Food sold in bulk. For the purposes of this provision, a "bulk sale" shall mean the sale of any item that would exceed the normal, customary and usual portion sold for on premises consumption (e.g., a whole cake, or a gallon of ice cream); a bulk sale shall not include any food or beverage that is catered or delivered by a food establishment for off-premises consumption.

(3) Alcoholic and nonalcoholic beverages sold in factory sealed containers.

 

(4) Any food or food product purchased with food coupons issued by the United States Department of Agriculture under the Food Stamp Program or drafts issued through the Virginia Special Supplemental Food Program for Women, Infants, and Children.

 

(5) Any food or food product purchased for home consumption as defined in the federal Food Stamp Act of 1977, 7 U.S.C. 2012, as amended except hot food or hot food products ready for immediate consumption. For the purposes of administering the tax levied hereunder, the following items whether or not purchased for immediate consumption are excluded from the said definition of food in the federal Food Stamp Act: sandwiches, salad bar items sold from a salad bar, prepackaged single-serving salads consisting primarily of an assortment of vegetables, and nonfactory sealed beverages. This subsection shall not affect provisions set forth in subparagraphs (c)(3), (4) and (5) herein below.

 

(b) A grocery store, supermarket or convenience store shall not be subject to the tax except for any portion or section therein designated as a delicatessen or designated for the sale of prepared food and beverages.

 

(c) The tax imposed under this article shall not be levied on the following purchases of food and beverages:

 

(1) Food and beverages furnished by food establishments to employees as part of their compensation when no charge is made to the employee.

 

(2) Food and beverages sold by day care centers, public or private elementary or secondary schools or food sold by any college or university to its students or employees.

 

(3) Food and beverages for use or consumption and which is paid for directly by the Commonwealth, any political subdivision of the Commonwealth or the United States.

 

(4) Food and beverages furnished by a hospital, medical clinic, convalescent home, nursing home, home for the aged, infirm, handicapped, battered women, narcotic addicts or alcoholics, or other extended care facility to patients or residents thereof.

 

(5) Food and beverages furnished by a public or private nonprofit charitable organization or establishment or a private establishment that contracts with the appropriate agency of the commonwealth to offer meals at concession prices to elderly, infirm, blind, handicapped or needy persons in their homes or at central locations.

 

(6) Food and beverages sold on an occasional basis, not exceeding three (3) times per calendar year, by a nonprofit educational, charitable or benevolent organization, church, or religious body as a fundraising activity, the gross proceeds of which are to be used by such organization exclusively for nonprofit educational, charitable, benevolent or religious purposes.

 

(7) Food and beverages sold through vending machines.

(Code 1964, 39-117; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98; Ord. No. 1282, 6-21-00)

 

Sec. 37-228.1. Gratuities and service charges.

 

(a) Where a purchaser provides a gratuity for an employee of a seller, and the amount of the gratuity is wholly in the discretion of the purchaser, the gratuity is not subject to the tax imposed by this article, whether paid in cash to the employee or added to the bill and charged to the purchaser's account, provided, in the latter case, the full amount of the gratuity is turned over to the employee by the seller.

 

(b) For periods prior to July 1, 2006, an amount or percent, whether designated as a gratuity, tip or service charge, that is added to the price of the food and beverages by the seller, and required to be paid by the purchaser is a part of the selling price of the food and beverage and is subject to the tax imposed by this article.

 

(c) For periods commencing on or after July 1, 2006, an amount or percent, whether designated as a gratuity, tip or service charge, which does not exceed twenty percent (20%) of the selling price of the food and beverages, that is added to the price of the food and beverages by the seller, and required to be paid by the purchaser, is not subject to the tax imposed by this article; however, any portion of such mandatory gratuity, tip or service charge that exceeds twenty percent (20%) that is added to the price of the food and beverages by the seller, and required to be paid by the purchaser is subject to the tax imposed by this article.

(Ord. No. 1206, 2-25-98)

 

Sec. 37-229. Collection.

 

(a) Every person receiving any payment for food with respect to which a tax is levied hereunder shall collect and remit the amount of the tax imposed by this article from the person on whom the same is levied or from the person paying for such food at the time payment for such food is made, whether such payment is made in cash or on credit by means of a credit card or otherwise; provided, however, no blind person operating a vending stand or other business enterprise under the jurisdiction of the Department for the Blind and Vision Impaired and located on property acquired and used by the United States for any military or naval purpose shall be required to collect or remit such taxes.

 

(b) The seller shall separately state the amount charged for food and beverages.

 

(c) The taxes collected under this article shall be deemed to be held in trust by the seller collecting the same until remitted as provided in this article.

(Code 1964, 39-119, 39-120; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98; Ord. No. 1282, 6-21-00)

 

Sec. 37-230. Reports and remittances generally.

 

The seller collecting any tax as provided in this article shall make out a report, upon such forms and setting forth such information as the commissioner of revenue may prescribe and require, showing the amount collected for food and beverages and the tax required to be collected, and shall sign and deliver such report to the commissioner of revenue, with a remittance of such tax. Such reports and remittances shall be made on or before the twentieth day of each month covering the amount of tax collected during the preceding month. If the remittance is by check or money order, the same shall be made payable to the treasurer of the city; and all remittances received hereunder together with copies of the reports received hereunder, by the commissioner of revenue shall be turned over to the city treasurer within fifteen (15) days of their receipt.

(Code 1964, 39-121; Ord. No. 566, 4-12-78; Ord. No. 778, 8-22-84; Ord. No. 1206, 2-25-98)

 

Sec. 37-231. Preservation of records.

 

It shall be the duty of every person required by this article to pay to the city the taxes imposed by this article to keep and to preserve for a period of five (5) years records showing all purchases taxable under this article, the amount charged the purchaser for each such purchase, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. The commissioner of the revenue or his duly authorized agents shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article, and to make transcripts of all or any parts thereof.

(Code 1964, 39-124; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98)

 

Sec. 37-231.1. Requirement of bond or letter of credit; authority of the commissioner.

 

(a) The commissioner may require all new businesses during the businesses' first year of operation, and those businesses with unsatisfactory remittance records, to post annually a bond with corporate surety to insure faithful performance of the seller's duties to the city as to food and beverage taxes collected and held by the seller. The bond, including the corporate surety thereon, shall be in a form deemed satisfactory by the city attorney. The bond shall be in an amount not less than the food and beverage taxes collected by the seller during the highest quarter of the previous tax year. For a new food establishment, the amount of the bond during its first year shall be equal to the food and beverage taxes to be collected on estimated gross receipts for the first quarter of operation as shown on the application for a business license. Notwithstanding the foregoing provisions, no such bond shall be issued or accepted in an amount less than one thousand dollars ($1,000.00).

 

(b) The commissioner of the revenue is authorized to develop, implement and utilize such forms, regulations and procedures as may be useful and expedient in implementing this section. The commissioner may accept an irrevocable letter of credit in lieu of the required bond, provided that the letter must be reviewed and approved by the city attorney.

(Ord. No. 1073, 12-19-92; Ord. No. 1076, 1-27-93; Ord. No. 1206, 2-25-98)

State Law Reference: Code of Virginia 15.2-1125.

 

Sec. 37-232. Duty of collector going out of business.

 

Whenever any person required to collect and pay to the city a tax under this article shall cease to operate or otherwise dispose of his business, any tax payable under this article to the city shall become immediately due and payable and such person shall immediately make a report and pay the tax due.

(Code 1964, 39-125; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98)

 

Sec. 37-233. Penalty for late remittance or false return.

 

If any person, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this article, within the time and in the amount specified in this article, there shall be added to such tax by the commissioner of revenue a penalty in the amount of ten (10) percent, if the failure is for not more than thirty (30) days, with an additional five (5) percent for each additional thirty (30) days or fraction thereof during which the failure continues, not to exceed twenty-five (25) percent in the aggregate, with a minimum penalty of ten dollars ($10.00), but in no event shall the penalty exceed the amount of the tax assessable. In addition, interest at the rate of ten (10) percent per annum may be computed and collected upon the taxes and penalty beginning from the date such taxes were due and payable.

(Code 1964, 39-122; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98)

State Law Reference: Code of Virginia, 58.1-3916.

 

Sec. 37-234. Procedure upon failure to collect, report, etc.

 

(a) If any person, whose duty it is so to do, shall fail or refuse to collect the tax imposed under this article and to make, within the time provided in this article, the reports and remittances mentioned in this article, the commissioner of revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the commissioner of revenue procures such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax and to make such report and remittance, he shall proceed to determine and assess against such person the tax and penalties provided for by this article and shall notify such person, by mail sent to his last known address, of the total amount of such tax and interest and penalties, and the total amount thereof shall be payable within ten (10) days from the date of such notice. The commissioner of revenue shall notify the treasurer of the assessment of any tax and penalties under this section within five (5) days of the expiration of the ten-day period hereinabove provided.

 

(b) It shall be the duty of the commissioner of revenue to ascertain the name of every person operating a food establishment in the city and liable for the collection of the tax levied by this article, who fails, refuses or neglects to collect such tax or to make, within the time provided by this article, the reports or remittances required in this article.

(c) The city treasurer shall have the power and the duty of collecting the taxes imposed and levied hereunder and shall cause the same to be paid into the general treasury for the city.

(Code 1964, 39-123, 39-126; Ord. No. 566, 4-12-78; Ord. No. 778, 8-22-84; Ord. No. 1206, 2-25-98)

 

Sec. 37-235. Food establishment not to advertise that it will pay or absorb tax.

 

A person operating a food establishment shall not advertise, in any manner, directly or indirectly, that he will absorb or pay all or any part of the tax imposed by this article.

(Code 1964, 39-118; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98)

 

Sec. 37-236. Penalty for violation of article.

 

(a) Any person willfully failing or refusing to file a return as required under this article shall, upon conviction thereof, be guilty of a Class 1 misdemeanor, except that any person failing to file such a return shall be guilty of a Class 3 misdemeanor if the amount of tax lawfully assessed in connection with the return is one thousand dollars ($1,000.00) or less. Any person violating or failing to comply with any other provision of this article shall be guilty of a Class 1 misdemeanor.

 

(b) Any corporate, partnership or limited liability company officer who willfully fails to pay, collect, or truthfully account for and pay over any local admission, transient occupancy, food and beverage, or daily rental property tax administered by the commissioner of revenue or other authorized officer, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty of the amount of the tax evaded or not paid, collected, or accounted for and paid over, to be assessed and collected in the same manner as such taxes are assessed and collected.

 

(c) The term corporate partnership or limited liability company officer, as used in this section means an officer or employee of a corporation, or a member, or employee of a partnership or member, manager or employee of a limited liability company who, as such officer, employee, member or manager, is under a duty to perform on behalf of the corporation, partnership or limited liability company the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

 

(d) Any corporate or partnership officer as defined in this section and in Virginia Code 58.1-3906, or any other person required to collect, account for and pay over any local admission, transient occupancy, food and beverage, daily rental property or cigarette taxes administered by the commissioner of the revenue or other authorized officer, who willfully fails to collect or truthfully account for and pay over such tax, and any such officer or person who willfully evades or attempts to evade any such tax or the payment thereof, shall, in addition to any other penalties proved by law, be guilty of a Class 1 misdemeanor.

(e) Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.

(Code 1964, 39-127; Ord. No. 566, 4-12-78; Ord. No. 1206, 2-25-98)

Cross References: Penalty for Class 1 misdemeanor, 1-11.

State Law References: Code of Virginia 58.1-3833(c), 58.1-3840, 58.1-3906 and 58.1-3907.

 

Secs. 37-237--37-250. Reserved.

 

ARTICLE VIII.

 

TRANSIENT LODGING TAX

State Law Reference: Code of Virginia, 58.1-3840.

 

Sec. 37-251. Definitions.

 

The following words and phrases, when used in this article, shall, for the purposes of this article, have the following respective meanings, except when the context clearly indicates a different meaning:

 

Hotel: Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house or other lodging place within the city offering lodging, for compensation, to any transient.

 

Lodging: Space or room furnished any transient, including the cost of all meals, food and other services when furnished with such space or room for a unit price.

 

Person: Any individual, partnership, society, association, joint stock company, corporation, estate or receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination or group of individuals acting as a unit.

 

Transient: Any person who, for a period of not more than sixty (60) consecutive days, either at his own expense or at the expense of another, obtains lodging at any hotel.

(Ord. No. 314; Code 1964, 39-81; Ord. No. 1238, 2-10-99)

Sec. 37-252. Levied; amount.

 

There is hereby imposed and levied by the city, on each transient, a tax equivalent to eight (8) percent of the total amount paid for lodging, by or for any transient, to any hotel.

(Ord. No. 314; Code 1964, 39-82; Ord. No. 858, 5-12-87; Ord. No. 1118, 5-11-94; Ord. No. 1296, 5-9-01; Ord. No. 1403, 6-8-05)

 

 

Sec. 37-253. Exemptions.

 

No tax shall be payable under this article in any of the following instances:

 

(1) On charges for lodging paid to any hospital, medical clinic, convalescent home or home for the aged.

 

(2) Lodging which is paid for directly by the Commonwealth, any political subdivision of the Commonwealth or the United States.

 

(3) Effective July 1, 2006, notwithstanding any other provisions of this chapter, the tax imposed on transient room rentals pursuant to this article shall be imposed only for the occupancy of any room or space that is suitable or intended for occupancy of transients for dwelling, lodging or sleeping purposes.

(Ord. No. 314; Code 1964, 39-89)

State Law Reference: Code of Virginia, 58.1-3843.

 

Sec. 37-254. Collection.

 

Every person receiving any payment for lodging with respect to which a tax is levied under this article shall collect the amount of such tax so imposed from the transient on whom such tax is levied or from the person paying for such lodging at the time payment for such lodging is made. The taxes required to be collected under this section shall be deemed to be held in trust by the person required to collect such taxes until remitted as required in this article.

(Ord. No. 314; Code 1964, 39-83)

 

Sec. 37-255. Reports and remittances generally.

 

The person collecting any tax imposed by this article shall make out report thereof, upon such forms and setting forth such information as the commissioner of revenue may prescribe and require, showing the amount of lodging charges collected and the tax required to be collected, and shall sign and deliver such report to the commissioner of revenue, with a remittance of such tax. Such report and remittance shall be made on or before the twentieth day of each month covering the amount of tax collected during the preceding month. All remittances received hereunder by the commissioner of revenue shall be promptly turned over to the city treasurer.

(Ord. No. 314; Code 1964, 39-84; Ord. No. 778, 8-22-84; Ord. No. 1222, 7-15-98)

 

Sec. 37-256. Collector's records.

 

It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by this article to keep and to preserve for a period of five (5) years, such suitable records as may be necessary to determine and show accurately all lodging charges taxable under this article, the amount charged the purchaser, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. The commissioner of the revenue or his duly authorized agents shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article, and to make transcripts of all or any parts thereof.

(Ord. No. 314; Code 1964, 39-87; Ord. No. 1222, 7-15-98)

 

Sec. 37-257. Duty of collector going out of business.

 

Whenever any person required to collect and pay to the city a tax under this article shall cease to operate or dispose of his business, he shall notify the commissioner of revenue of such fact and any tax payable under this article to the city shall become immediately due and payable on the date such person ceases to operate or disposes of his business and such person, having made a report through such date and having paid the tax due through such date, shall be relieved of any liability for the collection of such taxes thereafter. Otherwise, such person shall be liable for such taxes through the succeeding collection date.

(Ord. No. 314; Code 1964, 39-88)

 

Sec. 37-258. Penalty for late remittance or false return.

 

If any person, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this article, within the time and in the amount specified in this article, there shall be added to such tax by the commissioner of revenue a penalty in the amount of ten (10) percent, if the failure is for not more than thirty (30) days, with an additional five (5) percent for each additional thirty (30) days or fraction thereof during which the failure continues not to exceed twenty-five (25) percent in the aggregate, with a minimum penalty of ten dollars ($10.00), but in no event shall the penalty exceed the amount of tax assessable. In addition, interest at the rate of ten (10) percent per annum may be computed and collected on the tax and penalty beginning from the date such taxes were due and payable.

(Ord. No. 314; Code 1964, 39-85; Ord. No. 1222, 7-15-98)

State Law Reference: Code of Virginia, 58.1-3916.

 

Sec. 37-259. Procedure upon failure to collect, report, etc.

 

(a) If any person shall fail or refuse to collect the tax imposed under this article and to make, within the time provided in this article, the reports and remittances required in this article, the commissioner of revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the commissioner shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax, and to make such report and remittance, he shall proceed to determine and assess against such person such tax, penalty and interest as are provided for in this article, and shall notify such person, by mail sent to his last known address, of the amount of such tax, interest and penalty; and the total amount thereof shall be payable within ten (10) days from the date of the mailing of such notice. The commissioner of revenue shall notify the treasurer of the assessment of any tax and penalties under this section within five (5) days of the expiration of the ten-day payment period hereinabove provided.

 

(b) It shall be the duty of the commissioner of revenue to ascertain the name of every person operating a hotel in the city, liable for the collection of the tax levied by this article, who fails, refuses or neglects to collect such tax or to make, within the time provided by this article, the reports or remittances required in this article.

 

(c) The city treasurer shall have the power and the duty of collecting the taxes imposed and levied hereunder and shall cause the same to be paid into the general treasury for the city.

(Ord. No. 314; Code 1964, 39-86; Ord. No. 778, 8-22-84)

 

Sec. 37-260. Violations of article.

 

(a) Any person violating or failing to comply with any of the provisions of this article shall be guilty of a Class 1 misdemeanor and each violation or failure shall constitute a separate offense. Conviction for such violation shall not relieve any such person from the payment, collection or remittance of the tax as provided in this article.

 

(b) Any corporate, partnership or limited liability company officer who willfully fails to pay, collect, or truthfully account for and pay over any local admission, transient occupancy, food and beverage, or daily rental property tax administered by the commissioner of revenue or other authorized officer, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty of the amount of the tax evaded or not paid, collected, or accounted for and paid over, to be assessed and collected in the same manner as such taxes are assessed and collected.

 

(c) The term corporate partnership or limited liability company officer, as used in this section means an officer or employee of a corporation, or a member, or employee of a partnership or member, manager or employee of a limited liability company who, as such officer, employee, member or manager, is under a duty to perform on behalf of the corporation, partnership or limited liability company the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

 

(d) Any corporate or partnership officer as defined in this section and in Virginia Code 58.1-3906, or any other person required to collect, account for and pay over any local admission, transient occupancy, food and beverage, daily rental property or cigarette taxes administered by the commissioner of the revenue or other authorized officer, who willfully fails to collect or truthfully account for and pay over such tax, and any such officer or person who willfully evades or attempts to evade any such tax or the payment thereof, shall, in addition to any other penalties proved by law, be guilty of a Class 1 misdemeanor.

 

(e) Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.

(Ord. No. 314; Code 1964, 39-90)

Cross References: Penalty for Class 1 misdemeanor, 1-11.

State Law References: Code of Virginia, 58.1-3906 and 3907.

Secs. 37-261--37-275. Reserved.

 

ARTICLE IX.

 

ADMISSIONS TAX*

__________

* Charter References: Authority of city to levy and collect taxes on admission charges for public amusements, entertainment, etc., 2.02a.

State Law Reference: Code of Virginia, 58.1-3817.

__________

 

Sec. 37-276. Definitions.

 

The following words and phrases, when used in this article, shall, for the purposes of this article, have the following respective meanings, except where the context clearly indicates a different meaning:

 

Admission charge: The charge made for admission to any amusement or entertainment, exclusive of any federal tax thereon, including a charge made for season tickets, whether obtained by contributions or subscription, a cover charge or a charge made for the use of seats or tables, reserved or otherwise, and similar accommodations in the city. When a person is admitted free and a service charge is made, the service charge shall be considered a charge for admission.

 

Place of amusement or entertainment: Any place in the city wherein or whereat any of the following are located, conducted, performed, exhibited and operated and for which an admission charge is made: circuses, carnivals, menageries, moving picture shows, fairs, shows and exhibitions of all kinds; dances, baseball, basketball, football, wrestling, boxing and sports of all kinds; swimming pools; concerts, and theatrical, vaudeville, dramatic, operatic and musical performances and performances similar thereto; lectures, talks, library readings and performances similar thereto; such attractions as merry-go-rounds, Ferris wheels, roller coasters, leap-the-dips and the like; and all other public amusements, performances and exhibitions not specifically named herein.

 

Sporting event: Organized league and tournament play of a game involving athletic activity pursuant to a set form and body of rules.

(Ord. No. 347; Ord. No. 519; Code 1964, 39-68)

State Law References: Code of Virginia, 58.1-3840.

 

Sec. 37-277. Levied; amount.

 

There is hereby imposed and levied a tax in the amount of ten (10) percent of any admission charge to any place of amusement or entertainment, where the admission charge is thirty-five cents ($0.35) or any amount in excess thereof which shall be collected from each person who pays an admission charge of thirty-five cents ($0.35) or more to any place of amusement or entertainment, one-half cent or more being treated as one cent ($0.01); provided however, that there is hereby imposed and levied a tax in the amount of ten (10) percent of any admission charge to the Hampton Coliseum and the American Theatre.

(Ord. No. 347; Ord. No. 692, 6-24-81; Code 1964, 39-69; Ord. No. 935, 5-10-89; Ord. No. 1209, 5-13-98; Ord. No. 1275, 5-10-00)

 

Sec. 37-278. Exception if admission charge is thirty-four cents or less.

 

Where the admission charge is thirty-four cents ($0.34) or less, no tax shall be payable under this article, except as provided in section 37-277. Amounts paid for admission by season tickets or subscription shall be exempt only if the amount to be charged the holder or subscriber for a single admission is thirty-four cents ($0.34) or less.

(Ord. No. 347; Code 1964, 39-77)

 

Sec. 37-278.1. Exemptions.

 

There shall be no tax on any admission charges for the following:

 

(a) Admissions charged to attend any event, the gross receipts of which go wholly to charitable purpose or purposes.

 

(b) Admissions charged to participants in order to participate in sporting events.

 

Sec. 37-279. Repealed.

 

Sec. 37-280. Collection.

 

(a) Every person receiving any payment for admission to any place of amusement or entertainment on which a tax is levied under this article shall collect the amount of such tax from the person making an admission payment, at the time of the payment of such admission. If tickets or cards of admission are issued, the tax shall be collected at the time of the issuance of such tickets or cards. The taxes required to be collected hereunder shall be deemed to be held in trust by the person required to collect the same until remitted as provided in this article.

 

(b) The commissioner of revenue, with the approval of the city manager, is hereby authorized to establish a bracket system for the collection of the tax imposed by this article. Any person collecting such tax in accordance with such approved bracket system shall be relieved of any liabilities under this article when such funds are duly paid to the city treasurer.

(Ord. No. 347; Code 1964, 39-70)

 

Sec. 37-281. Reports and remittances generally.

 

The person collecting any tax imposed by this article shall make out a report, upon such forms and setting forth such information as the commissioner of revenue may prescribe and require, showing the amount of admission charges collected, exclusive of the federal tax thereon, and the tax from the admissions for which he is liable, and shall sign and deliver the same to the commissioner of revenue, with a remittance of such tax. Such report and remittance shall be made on or before the twentieth day of each month covering the amount of tax collected during the preceding month. If the remittance is by check or money order, the same shall be made payable to the treasurer of the city. All remittances received hereunder, together with copies of the reports received hereunder, by the commissioner of revenue shall be promptly turned over to the city treasurer.

(Ord. No. 347; Code 1964, 39-71; Ord. No. 778, 8-22-84; Ord. No. 1221, 7-15-98)

 

Sec. 37-282. Reports, remittances and deposits by temporary or transitory places of amusement or entertainment.

 

(a) Whenever any place of amusement or entertainment of a temporary or transitory nature makes an admission charge which is subject to the tax levied by this article, the commissioner of revenue may require the report and remittance of such tax to be made on the day following its collection, or on the day following the conclusion of a series of performances or exhibitions, or at such other reasonable time or times as he shall determine, and failure to comply with any such requirement of the commissioner of revenue as to the report and remittance of the tax so required shall be a violation of this article.

 

(b) Before any temporary or transient place of amusement or entertainment mentioned in subsection (a) above shall begin operation, and before any license shall be issued therefor, if a license is required, the person operating the same shall deposit with the city treasurer a sum of money, to be estimated by the commissioner of revenue, sufficient to cover the tax required to be collected by such person under the provisions of this article, as security for the collection of such tax and payment thereof to the city. At the conclusion of such temporary or transient operation in the city, such person shall file with the commissioner of revenue the report required by this article and pay the tax collected to the city. Upon such report being filed and payment being made, the city treasurer shall refund the deposit made under this section. Should any such person fail to file such report and pay such tax collected within five (5) days from the termination of the operation of such amusement or entertainment, the commissioner of revenue may thereupon assess such person and such tax at the amount of such deposit and the city treasurer shall retain such deposit in full payment of the tax collected by and due the city by such person.

(Ord. No. 347; Code 1964, 39-76)

 

Sec. 37-283. Collector's records.

 

It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by this article to keep and to preserve for a period of five (5) years such suitable records as may be necessary to determine the amount of such tax he may have been responsible for collecting and paying to the city to include records showing all admission charges taxable under this article, the amount charged the purchaser for each admission, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. The commissioner of the revenue or his duly authorized agents shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article, and to make transcripts of all or any parts thereof.

(Ord. No. 347; Code 1964, 39-74; Ord. No. 1221, 7-15-98)

 

Sec. 37-284. Duty of collector going out of business.

 

Whenever any person required to collect and pay to the city a tax under this article shall quit business or otherwise dispose of his business, any tax payable to the city under this article shall become immediately due and payable and such person shall immediately make a report and pay the tax due.

(Ord. No. 347; Code 1964, 39-75)

 

Sec. 37-285. Penalty for late remittance or false return.

 

If any person, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this article, within the time and in the amount specified in this article, there shall be added to such tax by the commissioner of the revenue a penalty in the amount of ten (10) percent, if the failure is for not more than thirty (30) days, with an additional five (5) percent for each additional thirty (30) days or fraction thereof during which the failure continues, not to exceed twenty-five (25) percent in the aggregate, with a minimum penalty of ten dollars ($10.00), but in no event shall the penalty exceed the amount of the tax assessable. In addition, interest at the rate of ten (10) percent per annum may be computed and collected upon the taxes and penalty beginning from the date such taxes were due and payable.

(Ord. No. 347; Ord. No. 351; Code 1964, 39-72; Ord. No. 1221, 7-15-98)

State Law Reference: Code of Virginia, 58.1-3916.

 

Sec. 37-286. Procedure upon failure to collect, report, etc.

 

(a) If any person shall fail or refuse to collect the tax imposed by this article or to make, within the prescribed time, any report and remittance required by this article, the commissioner of revenue shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the commissioner of revenue shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such person the tax and penalties provided for by this article and shall notify such person by mail of the total amount of such tax and interest and penalties; and the total amount thereof shall be payable within ten (10) days from the date of such notice. The commissioner of revenue shall notify the treasurer of the assessment of any tax and penalties under this section within five (5) days of the expiration of the ten (10) day payment period hereinabove provided.

 

(b) It shall be the duty of the commissioner of revenue to ascertain the name of every person operating a place of amusement in the city, liable for the collection of the tax levied by this article, who fails, refuses or neglects to collect such tax or to make, within the time provided by this article, the report or remittances required in this article.

(c) The city treasurer shall have the power and the duty of collecting the taxes imposed and levied hereunder and shall cause the same to be paid into the general treasury for the city.

(Ord. No. 347; Code 1964, 39-73; Ord. No. 778, 8-22-84)

 

Sec. 37-287. Violations of article.

 

(a) Any person violating or failing to comply with any of the provisions of this article shall be guilty of a Class 1 misdemeanor and each such violation or failure shall constitute a separate offense. Conviction for such violation shall not relieve any such person from the payment, collection and remittance of the tax, interest and penalties as provided in this article.

 

(b) Any corporate, partnership or limited liability company officer who willfully fails to pay, collect, or truthfully account for and pay over any local admission, transient occupancy, food and beverage, or daily rental property tax administered by the commissioner of revenue or other authorized officer, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty of the amount of the tax evaded or not paid, collected, or accounted for and paid over, to be assessed and collected in the same manner as such taxes are assessed and collected.

 

(c) The term corporate partnership or limited liability company officer, as used in this section means an officer or employee of a corporation, or a member, or employee of a partnership or member, manager or employee of a limited liability company who, as such officer, employee, member or manager, is under a duty to perform on behalf of the corporation, partnership or limited liability company the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

 

(d) Any corporate or partnership officer as defined in this section and in Virginia Code 58.1-3906, or any other person required to collect, account for and pay over any local admission, transient occupancy, food and beverage, daily rental property or cigarette taxes administered by the commissioner of the revenue or other authorized officer, who willfully fails to collect or truthfully account for and pay over such tax, and any such officer or person who willfully evades or attempts to evade any such tax or the payment thereof, shall, in addition to any other penalties proved by law, be guilty of a Class 1 misdemeanor.

 

(e) Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.

(Ord. No. 347; Code 1964, 39-80)

Cross References: Penalty for Class 1 misdemeanor, 1-11.

State Law References: Code of Virginia, 58.1-3906 and 58.1-3907.

 

Secs. 37-288--37-300. Reserved.

 

 

ARTICLE X.

 

CIGARETTE TAX*

__________

* State Law References: Authority of city to levy cigarette tax and permitted provisions of ordinance providing for administration and enforcement of such tax, Code of Virginia, 58.1-3830, 58.1-3832.

__________

 

Sec. 37-301. Definitions.

 

The following words and phrases, when used in this article, shall, for the purposes of this article, have the following respective meanings except where the context clearly indicates a different meaning:

 

Dealer: Every manufacturer, jobber, wholesale dealer or other person who supplies a seller with cigarettes.

 

Mill: A unit of monetary value equal to 1/1,000 U.S. dollar (1/10 of $0.01).

 

Package: Every package, box, can or other container of any cigarettes, irrespective of the material from which such container is made, to which the internal revenue stamp of the United States Government is required to be affixed by and under federal statutes and regulations, and in which retail sales of such cigarettes are normally made or intended to be made.

 

Person: Any individual, partnership, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals.

 

Purchaser: Every person to whom title to any cigarettes is transferred by a seller within the corporate limits of the city.

 

Sale: Every act or transaction, irrespective of the method or means employed, including the use of vending machines and other mechanical devices, whereby title to any cigarettes shall be transferred from the seller to any other person within the corporate limits of the city.

 

Seller: Every person who transfers title to any cigarettes or in whose place of business title to any cigarettes is transferred, within the corporate limits of the city, for any purpose other than resale.

 

Stamp: A small gummed piece of paper or decalcomania to be sold by the city treasurer and to be affixed to every package of cigarettes sold at retail in the city and also any insignia or symbols printed by a meter machine upon any such package under the authorization of the commissioner of revenue.

(Ord. No. 125, 1; Code 1964, 39-35; Ord. No. 1325, 5-8-02)

Sec. 37-302. Levied; amount.

 

There is hereby levied and imposed by the city, upon each and every sale of cigarettes, a tax equivalent to thirty-two and one-half (32.5) mills per cigarette sold within the city, the amount of such tax to be paid by the seller, if not previously paid, in the manner and at the time provided for in this article.

(Ord. No. 125, 2; Ord. No. 283; Ord. No. 299; Code 1964, 39-36; Ord. No. 775, 6-27-84; Ord. No. 859, 5-12-87; Ord. No. 932, 5-11-88; Ord. No. 934, 5-10-89; Ord. No. 1044, 5-13-92; Ord. No. 1117, 5-11-94; Ord. No. 1325, 5-8-02; Ord. No. 1353, 5-28-03)

 

Sec. 37-303. Method of payment.

 

(a) The tax imposed by this article shall be paid by affixing or causing to be affixed a stamp or stamps, of the proper denominational or face value, to each and every package of cigarettes sold within the city, in the manner and at the time or times provided for in this article. Every dealer and every seller in the city shall have the right to buy such stamps from the city treasurer and to affix the same to packages of cigarettes as provided in this article.

 

(b) The commissioner of revenue may permit the payment in advance of the tax levied and imposed by this article by the method of placing imprints of the stamps upon original packages by the use of meter machines, in lieu of the method of paying such tax by the purchase and affixing of gummed stamps, and may prescribe and enforce the necessary regulations setting forth the method to be employed and the condition to be observed in the use of such meter machines.

(Ord. No. 125, 3, 8; Code 1964, 39-37, 39-43)

 

Sec. 37-304. Preparation and sale of stamps generally.

 

For the purpose of making stamps available for use, the commissioner of revenue shall prescribe, prepare and furnish to the city treasurer, and the city treasurer shall sell, stamps of such denominations and in such quantities as may be necessary for the payment of the taxes imposed by this article. In the sale of such stamps, the city treasurer shall allow a discount of five (5) percent of the denominational or face value thereof to cover the costs which will be incurred in affixing the stamps to packages of cigarettes. In the event the printing by an authorized meter machine is used in lieu of gummed stamps, there shall be allowed a discount of six (6) percent of the denominational or face value of the imprints of such stamps so printed by such meter machine to cover the costs incurred in printing such imprints.

(Ord. No. 125, 6; Ord. No. 284; Ord. No. 302; Code 1964, 39-41)

 

Sec. 37-305. General duties of dealers and sellers with respect to stamps.

 

(a) Every local dealer in cigarettes is hereby required and it shall be his duty to purchase such stamps, at the office of the city treasurer, as shall be necessary to pay the tax levied and imposed by this article, and to affix or cause to be affixed a stamp or stamps of the monetary value prescribed by this article to each package of cigarettes prior to delivery or furnishing of such cigarettes to any seller. Nothing herein contained shall preclude any dealer from using a stamp meter machine in lieu of gummed stamps to effectuate the provisions of this article.

 

(b) Every seller shall examine each package of cigarettes prior to exposing the same for sale, for the purpose of ascertaining whether such package has the proper stamps affixed thereto or imprinted thereon, as provided by this article. If upon such examination, unstamped or improperly stamped packages of cigarettes are discovered, the seller, where such cigarettes were obtained from a local dealer, shall immediately notify such dealer, and upon such notification, such dealer shall forthwith either affix to or imprint upon such unstamped or improperly stamped packages the proper amount of stamps, or shall replace such packages with others to which stamps have been properly affixed or imprinted thereon.

 

(c) Should a seller obtain or acquire possession of, from any person other than a local dealer, any unstamped or improperly stamped cigarettes, such seller shall forthwith, before selling or offering or exposing such cigarettes for sale in the city, purchase and affix or cause to be affixed to such packages of cigarettes the proper stamps, or the markings of a meter machine, covering the tax imposed by this article.

 

(d) In the event any seller elects to purchase and affix stamps or imprints of a meter machine, before offering cigarettes for sale, any local dealer delivering and furnishing cigarettes to such seller shall not be required to purchase and affix such stamps or imprints to such cigarettes so sold or furnished; provided that, any such local dealer shall, on the day following the day of such delivery and furnishing, file with the commissioner of revenue a copy of the delivery memorandum showing the name and address of the seller and the quantity and type of cigarettes so delivered and furnished.

(Ord. No. 125, 4, 5; Code 1964, 39-39, 39-40)

 

Sec. 37-306. Visibility of stamps or meter markings.

 

Stamps or the printed markings of a meter machine shall be placed upon each package of cigarettes in such manner as to be readily visible to purchaser.

(Ord. No. 125, 4; Code 1964, 39-39)

 

Sec. 37-307. Altering design of stamps.

 

The commissioner of revenue may, from time to time, and as often as he may deem advisable, provide for the issuance and exclusive use of stamps of a new design and forbid the use of stamps of any other design.

(Ord. No. 125, 7; Code 1964, 39-42)

 

Sec. 37-308. Refund for unused stamps or meter imprints.

 

(a) Should any person, after acquiring from the city treasurer any stamps provided for in this article, cease to be engaged in a business necessitating the use thereof, or should any such stamps become mutilated and unfit for use, other than by cancellation as provided in this article, such person shall be entitled to a refund of the denominational or face amount of any stamps so acquired and not used by him, less five (5) percent of the denominational or face amount thereof, upon presenting such stamps to the commissioner of revenue and furnishing the commissioner of revenue with an affidavit showing, to his satisfaction, that such stamps were acquired by such person and have not in any manner been used and the reason for requesting such refund. In the case of any authorized meter machine, should any imprints of such machine theretofore paid for not be used, such person shall, upon furnishing the commissioner of revenue with a similar affidavit, be entitled to a refund of the denominational or face amount thereof, less six (6) percent of the denominational or face amount of such imprints of such machine not so used.

(b) All refunds for unused and mutilated stamps and for nonuse of imprints of stamps by meter machines provided for under this section are hereby authorized to be made on vouchers approved by the commissioner of revenue and, when made, the same shall be charged against the sums collected for the sale of such stamps and for the use of such imprints.

(Ord. No. 125, 9; Ord. No. 285; Ord. No. 303; Code 1964, 39-44)

 

Sec. 37-309. Seizure and sale of unstamped cigarettes.

 

Whenever the commissioner of revenue shall discover any cigarettes which are subject to the tax imposed by this article and upon which the tax has not been paid or upon which stamps have not been affixed or evidence of such tax shown thereon by the printed markings of an authorized meter machine, as in this article required, the commissioner of revenue, upon proper notice, is hereby authorized and empowered to forthwith seize and take possession of such cigarettes, which shall thereupon be deemed to be forfeited to the city, and he may, within a reasonable time thereafter, after written notice posted at the front door of the Court House of the city, at least five (5) days before the date of sale, or published in some newspaper having general circulation in the city at least five (5) days before the date of sale, sell such forfeited cigarettes at the time and place designated in such notice and, from the proceeds of such sale, shall collect the tax due thereon, together with a penalty of fifty (50) percent thereof and the costs incurred in such proceedings and pay the balance, if any, of such proceeds to the person in whose possession such forfeited cigarettes were found. Such seizure and sale shall not be deemed to relieve any person from any penalty provided for the violation of the provisions of this article. All monies collected under the provisions of this section shall be paid to the city treasurer and treated as other taxes collected under this article.

(Ord. No. 125, 10; Code 1964, 39-46)

State Law Reference: Code of Virginia, 58.1-3832(6).

 

Sec. 37-310. Dealers' and sellers' records generally.

 

It shall be the duty of every local dealer and seller to maintain and keep, for a period of two (2) years, such records of cigarettes sold and delivered by him as may be required by the commissioner of revenue and to make all such records available for examination by such commissioner of revenue, upon demand, at any and all reasonable times.

(Ord. No. 125, 13; Code 1964, 39-38)

 

 

 

Sec. 37-311. Rules and regulations for enforcement and administration of article; examination of books, records, etc.

 

(a) The commissioner of revenue is hereby authorized and empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to the method and means to be used in the cancellation of the aforesaid stamps and to any and all other matters pertaining to the administration and enforcement of the provisions of this article.

 

(b) The commissioner of revenue may examine books, records, invoices, papers and any and all cigarettes in and upon any premises where the same are placed, stored, sold, offered for sale or displayed for sale by a seller.

(Ord. No. 125, 14; Code 1964, 39-48)

 

Sec. 37-312. Tax is in addition to other taxes.

 

The tax levied and imposed by this article shall be in addition to all other taxes of every kind levied and imposed by any other ordinance or law.

(Ord. No. 125, 15; Code 1964, 39-49)

 

Sec. 37-313. Violations of article--Generally.

 

(a) Any person violating any of the provisions of this article shall be guilty of a Class 1 misdemeanor. Conviction and punishment for such violation shall not relieve any person from the payment of any tax imposed by this article.

 

(b) The term corporate partnership or limited liability company officer, as used in this section means an officer or employee of a corporation, or a member, or employee of a partnership or member, manager or employee of a limited liability company who, as such officer, employee, member or manager, is under a duty to perform on behalf of the corporation, partnership or limited liability company the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

 

(c) Any corporate or partnership officer as defined in this section and in Virginia Code 58.1-3906, or any other person required to collect, account for and pay over any local admission, transient occupancy, food and beverage, daily rental property or cigarette taxes administered by the commissioner of the revenue or other authorized officer, who willfully fails to collect or truthfully account for and pay over such tax, and any such officer or person who willfully evades or attempts to evade any such tax or the payment thereof, shall, in addition to any other penalties proved by law, be guilty of a Class 1 misdemeanor.

 

(d) Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.

Cross References: Penalty for Class 1 misdemeanor, 1-11.

State Law Reference: Code of Virginia, 58.1-3907.

Sec. 37-314. Same--Prohibited acts enumerated.

 

It shall be unlawful and a violation of this article for any person:

 

(1) To perform any act or fail to perform any act for the purpose of evading the payment of any tax imposed by this article or of any part thereof; or for any dealer or seller, with intent to violate any provision of this article, to fail or refuse to perform any of the duties imposed upon him under the provisions of this article or to fail or refuse to obey any lawful order which the commissioner of revenue may issue under this article.

 

(2) To falsely or fraudulently make, forge, alter or counterfeit any stamp or the printed markings of any meter machine or to procure or cause to be made, forged, altered or counterfeited any such stamp or printed markings of a meter machine or to knowingly and wilfully alter, publish, pass or tender as true any false, altered, forged or counterfeited stamp or stamps or printed markings of a meter machine.

 

(3) To sell any cigarettes upon which the tax imposed by this article has not been paid and upon which evidence of payment thereof is not shown on each package of cigarettes.

 

(4) To reuse or refill with cigarettes any package from which cigarettes, for which the tax imposed has been theretofore paid, have been removed.

 

(5) To remove from any package any stamp or the printed markings of a meter machine with intent to use or cause the same to be used after the same have already been used or to buy, sell or offer for sale or give away any used, removed, altered or restored stamps or printed markings of a meter machine to any person or to reuse any stamp or printed markings of a meter machine which had theretofore been used for evidence of the payment of any tax prescribed by this article or, except as to the city treasurer, to sell or offer to sell any stamps or printed markings of a meter machine provided for in this article.

(Ord. No. 125, 11; Code 1964, 39-47)

 

Sec. 37-315. Same--Presumption of violation by seller.

 

In the event any package of cigarettes is found in the possession of a seller, without the proper stamps being affixed thereto or without authorized printed markings of a meter machine thereon, and the seller shall be unable to submit evidence establishing that he received such package within the immediately preceding forty-eight (48) hours and that he has not offered the same for sale, the presumption shall be that such package is being kept by such seller in violation of the provisions of this article and shall subject him to the penalties provided for such violation.

(Ord. No. 125, 12; Code 1964, 39-45)

 

Secs. 37-316--37-330. Reserved.

 

ARTICLE XI.

 

RECORDATION TAX

 

 

Sec. 37-331. Levied; amount; collection generally.

 

There is hereby imposed a recordation tax on the first recordation of each taxable instrument in the city of the amount of one-third ( 1/3) of the amount of the state recordation tax, as authorized by article 1 of chapter 38 of title 58.1 of the Code of Virginia (Code of Virginia, 58.1-3800 et seq.), excepting such instruments as are exempted by section 58.1-3800 of the Code of Virginia, which tax shall be collected by the clerk of the circuit court for the city and paid monthly to the treasurer of the city.

(Ord. No. 30, 1; Code 1964, 39-15; Ord. No. 997, 2-27-91; Ord. No. 1383, 10-13-04)

State Law References: Authority for above tax, Code of Virginia, 58.1-814.

 

Sec. 37-332. Compensation of clerk of circuit court for collecting.

 

Pursuant to section 58.1-3803 of the Code of Virginia, the compensation of the clerk of the circuit court for the services rendered pursuant to section 37-331 shall be as is set forth in the annual budget of the city as supplemental salary of the clerk and, in addition thereto, five (5) percent of all recordation taxes collected and paid over pursuant to section 37-331.

(Ord. No. 30, 1; Ord. No. 298; Code 1964, 39-16; Ord. No. 997, 2-27-91)

 

Secs. 37-333, 37-334. Reserved.

 

ARTICLE XII.

 

SHORT-TERM RENTAL TAX

 

Sec. 37-335. Levied; amount.

 

Pursuant to section 58.1-3510.1 of the Code of Virginia, there is hereby assessed and imposed on every person engaged in the short-term rental business a tax of one percent on the gross proceeds of such business. Such tax shall be in addition to the tax levied pursuant to section 58.1-605 of the Code of Virginia. For purposes of this section, "gross proceeds" means the total amount charged to each person for the rental of daily rental property, excluding any state and local sales tax paid pursuant to the Virginia Retail Sales and Use Tax Act (Code of Virginia, 58.1-600 et seq.).

(Ord. No. 950, 10-11-89)

 

Sec. 37-336. Daily rental property; defined.

 

For purposes of this section, "daily rental property" means all tangible personal property held for rental and owned by a person engaged in the short-term rental business, except trailers, as defined in section 46.2-100 of the Code of Virginia, and other tangible personal property required to be licensed or registered with the department of motor vehicles, department of game and inland fisheries, or the department of aviation.

(Ord. No. 950, 10-11-89)

 

Sec. 37-337. Short-term rental business; defined.

 

A person is engaged in the short-term rental business if not less than eighty (80) percent of the gross rental receipts of such business in any year are from transactions involving rental periods of ninety-two (92) consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessor. "Affiliated" for purposes of this section shall mean any common ownership interest in excess of five (5) percent of any officers or partners in common with the lessor and lessee. For purposes of this test, (1) any rental to a person affiliated with the lessor shall be treated as rental receipts but shall not qualify for purposes of the eighty (80) percent requirement, and (2) any rental of personal property which also involves the provision of personal services for the operation of the personal property rented shall not be treated as gross receipts from rental. For purposes of this section, the delivery and installation of tangible personal property shall not mean operation.

(Ord. No. 950, 10-11-89)

 

Sec. 37-337.1. Short-term rental tax; defined.

 

For purposes of this article short-term rental tax and daily rental property tax are the same.

 

Sec. 37-338. Taxation of rental property that is not daily rental property.

 

Except for daily rental vehicles, rental property that is not daily rental property shall be classified for taxation pursuant to section 58.1-3503 of the Code of Virginia.

(Ord. No. 950, 10-11-89)

 

Sec. 37-339. Collection, return and remittance of tax.

 

Every person engaged in the short-term rental business shall collect the rental tax from the lessee of the daily rental property at the time of the rental. The lessor of the daily rental property shall transmit a quarterly return to the commissioner of revenue, indicating the gross proceeds derived from the short-term rental business. The commissioner of the revenue shall assess the tax due, and the treasurer shall collect the daily rental property tax as is due for the quarter. The quarterly returns and payment of tax shall be filed with the commissioner of revenue on or before the 20th day of each of the months of April, July, October, and January, representing, respectively, the gross proceeds and taxes collected during the preceding quarters ending March 31, June 30, September 30, and December 31. The return shall be upon such forms and setting forth such information as the commissioner of revenue may require, showing the amount of gross receipts and the tax required to be collected. The taxes required to be collected under this article shall be deemed to be held in trust by the person required to collect such taxes until remitted as required in this article.

(Ord. No. 950, 10-11-89)

Sec. 37-339.1. Preservation of records.

 

It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by the article to keep and to preserve for a period of five (5) years such suitable records as may be necessary to determine the amount of such tax he may have been responsible for collecting and paying to the city to include records showing all short-term rental charges taxable under this article, the amount charged the purchaser, the date thereof, the taxes collected thereon and the amount of tax required to be collected by this article. The commissioner of revenue or his duly authorized agents shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article, and to make transcripts of all or any parts thereof.

(Ord. No. 1223, 7-15-98)

 

Sec. 37-340. Procedure upon failure to collect, report, or remit taxes.

 

If any person, whose duty it is so to do, shall fail or refuse to collect the tax imposed under this article and to make, within the time provided in this article, the returns and remittances required in this article, the commissioner of revenue shall proceed in such manner as the commissioner may deem best to obtain facts and information on which to base the commissioner's estimate of the tax due. As soon as the commissioner of revenue shall procure such facts and information as the commissioner is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect such tax and to make such return and remittance, the commissioner shall proceed to determine and assess against such person the tax, penalty, and interest provided for by this article and shall notify such person, by mail, sent to the person's last known place of address, of the total amount of such tax, penalty, and interest, and the total amount thereof shall be payable within ten (10) days from the date of such notice. In the event such tax is not paid within ten (10) days from the date of the notice, the Treasurer shall proceed to collect same in accordance with chapter 39 of title 58.1 of the Code of Virginia.

(Ord. No. 950, 10-11-89)

 

Sec. 37-341. Penalty for late remittance or false return.

 

(a) If any person, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this article, within the time and in the amount specified in this article, there shall be imposed, in addition to other penalties provided herein, a specific penalty to be added to the tax in the amount of six percent (6%) if the failure is for not more than one (1) month, with an additional six percent (6%) for each additional month, or fraction thereof, during which the failure continues, not to exceed thirty percent (30%) in the aggregate. In no case, however, shall the penalty be less than ten dollars ($10.00) and such minimum penalty shall apply whether or not any tax is due for the period for which such return was required. If such failure is due to providential or other good cause shown to the satisfaction of the commissioner, such return with or without remittance may be accepted exclusive of penalties.

 

(b) All penalties and interest imposed by this section shall be payable by the dealer and collectable by the commissioner in the same manner as if they were a part of the tax imposed.

 

(c) In the case of a false or fraudulent return with intent to defraud the city of any tax due under this article, a penalty of fifty (50) percent of the tax may be assessed against the person required to collect such tax.

(Ord. No. 950, 10-11-89; Ord. No. 1223, 7-15-98)

State Law References: Code of Virginia, 58.1-635 and 58.1-636.

 

Sec. 37-342. Exclusions and exemptions.

 

No tax shall be collected or assessed on (1) rentals by the Commonwealth, any political subdivision of the Commonwealth or the United States; (2) assessed on any rental meeting the provisions of Code of Virginia 58.1-609.158.1-609.11; (3) otherwise qualifying rentals that do not leave the premises of the person engaged in the short-term rental business; or (4) any rental of durable medical equipment as defined in subdivision 10 of section 58.1-609.10 of the Code of Virginia.

(Ord. No. 950, 10-11-89)

 

Sec. 37-343. Renter's certificate of registration.

 

Every person engaging in the business of short-term rental of tangible personal property shall file an application for a certificate of registration with the commissioner of revenue. The application shall be on a form prescribed by the commissioner of revenue and shall set forth the name under which the applicant intends to operate the rental business, the location and such other information as the commissioner may require.

 

Each applicant shall sign the application as owner of the rental business. If the rental business is owned by an association, partnership, or corporation, the application shall be signed by a member, partner, executive officer or other person specifically authorized by the association, partnership, or corporation to sign.

 

Upon approval of the application by the commissioner of revenue, a certificate of registration shall be issued. The certificate shall be conspicuously displayed at all times at the place of business for which it is issued.

 

The certificate is not assignable and shall be valid only for the person in whose name it is issued and the place of business designated.

(Ord. No. 950, 10-11-89)

 

Sec. 37-344. Criminal penalties for violation of article.

 

Any person violating or failing to comply with any provision of this article shall be guilty of a Class 3 misdemeanor. Provided, however, if the amount of tax due and unpaid for any quarterly installment exceeds one thousand dollars ($1,000.00), any person failing to remit payment when due shall be guilty of a Class 1 misdemeanor.

(Ord. No. 950, 10-11-89)

 

Sec. 37-344.1. Penalties for violation of article.

 

(a) Any corporate, partnership or limited liability company officer who willfully fails to pay, collect, or truthfully account for and pay over any local admission, transient occupancy, food and beverage, or daily rental property tax administered by the commissioner of revenue or other authorized officer, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty of the amount of the tax evaded or not paid, collected, or accounted for and paid over, to be assessed and collected in the same manner as such taxes are assessed and collected.

 

(b) The term corporate partnership or limited liability company officer, as used in this section means an officer or employee of a corporation, or a member, or employee of a partnership or member, manager or employee of a limited liability company who, as such officer, employee, member or manager, is under a duty to perform on behalf of the corporation, partnership or limited liability company the act in respect of which the violation occurs and who (i) had actual knowledge of the failure or attempt as set forth herein and (ii) had authority to prevent such failure or attempt.

 

(c) Any corporate or partnership officer as defined in this section and in Virginia Code 58.1-3906, or any other person required to collect, account for and pay over any local admission, transient occupancy, food and beverage, daily rental property or cigarette taxes administered by the commissioner of the revenue or other authorized officer, who willfully fails to collect or truthfully account for and pay over such tax, and any such officer or person who willfully evades or attempts to evade any such tax or the payment thereof, shall, in addition to any other penalties proved by law, be guilty of a Class 1 misdemeanor.

 

(d) Each violation of or failure to comply with this article shall constitute a separate offense. Conviction of any such violation shall not relieve any person from the payment, collection or remittance of the tax as provided in this article.

State Law References: Code of Virginia, 58.1-3906 and 58.1-3907.

 

ARTICLE XIII.

 

TAX ON PURCHASERS OF CABLE TELEVISION SERVICE*

__________

* Cross References: Cable television, Ch. 9.1.

__________

 

Sec. 37-345. Levied; amount.

 

(a) There is hereby imposed and levied by the city, upon each and every purchaser of cable television service inside the corporate limits of the city, a tax in the amount of seven (7) percent of the charge for cable service made by the seller thereof against the purchaser.

(b) Cable television service furnished in the corporate limits of the city shall be deemed a utility service.

(Ord. No. 1086, 5-12-93; Ord. No. 1324, 5-8-02)

 

Sec. 37-346. Applicability generally.

 

The tax imposed and levied under this article on purchasers with respect to cable television services shall apply to all charges made for cable television services, except any charge made for a remote control tuning device.

(Ord. No. 1086, 5-12-93)

 

Sec. 37-347. Exemptions.

 

The United States of America, the State of Virginia and the political subdivisions, boards, commissions and authorities thereof are hereby exempt from the payment of the tax imposed and levied by this article with respect to the purchase of cable television service used by such governmental agencies.

(Ord. No. 1086, 5-12-93)

 

Sec. 37-348. Duty of seller to collect and remit; seller's reports.

 

(a) It shall be the duty of every seller of cable television service, in acting as the tax collecting medium or agency for the city, to collect from the purchaser, for the use of the city, the tax imposed and levied by this article at the time of collecting the purchase price charged for the service. The tax collected during such calendar month shall be reported and remitted by the seller to the commissioner of the revenue on or before the twentieth day of each month covering the amount of tax collected during the preceding calendar month. At the same time, the seller shall report the name and address of any purchaser who has refused to pay such tax. The required reports shall be in the form prescribed by the commissioner of the revenue.

 

(b) All remittances received hereunder by the commissioner of the revenue shall be promptly turned over to the city treasurer.

(Ord. No. 1086, 5-12-93; Ord. No. 1218, 6-24-98)

 

Sec. 37-349. Seller's records.

 

Each and every seller of cable television service shall keep and preserve for a period of five (5) years records showing all purchases of such service in the city, which records shall show the price charged against each purchaser with respect to each purchase, the date thereof, the date of payment thereof and the amount of tax imposed under this article. Such records shall be kept open for inspection by the duly authorized agents of the city at reasonable times, and the duly authorized agents of the city shall have the right, power and authority to make such transcripts thereof during such times as they may desire.

(Ord. No. 1086, 5-12-93; Ord. No. 1218, 6-24-98)

 

 

Sec. 37-350. Violation of article by seller.

 

Any seller violating the provisions of this article, and any officer, agent or employee of any seller violating the provisions of this article, shall be deemed guilty of a Class 4 misdemeanor. Each failure, refusal, neglect or violation and each day's continuance thereof shall constitute a separate offense.

(Ord. No. 1086, 5-12-93)

 

Sec. 37-351. General duty of treasurer to collect.

 

The city treasurer shall be charged with the power and the duty of collecting the tax levied and imposed under this article and shall cause the same to be paid into the general fund of the city.

(Ord. No. 1086, 5-12-93)

 

Sec. 37-352. Assessment and collection of delinquencies.

 

It shall be the duty of the commissioner of revenue to assess taxes reported by the seller to be unpaid under this article against the purchaser, together with a penalty in the amount of five (5) percent, if the failure is for not more than thirty (30) days, with an additional five (5) percent for each additional thirty (30) days or fraction thereof during which the failure continues, not to exceed twenty-five (25) percent in the aggregate, with a minimum penalty of two dollars ($2.00). These assessments shall be turned over to the city treasurer, who shall collect the taxes and penalty in the same manner as other delinquent taxes are collected.

(Ord. No. 1086, 5-12-93; Ord. No. 1218, 6-24-98)

 

Sec. 37-353. Penalty for late remittance or false return.

 

(a) If the seller, whose duty it is so to do, shall fail or refuse to remit to the commissioner of revenue the tax required to be collected and paid under this article, within the time and in the amount specified in this article, there shall be added to such tax by the commissioner of revenue a penalty in the amount of five (5) percent, if the failure is for not more than thirty (30) days, with an additional five (5) percent for each additional thirty (30) days or fraction thereof during which the failure continues, not to exceed twenty-five (25) percent in the aggregate, with a minimum penalty of two dollars ($2.00).

 

(b) In the case of a false or fraudulent return with intent to defraud the city of any tax due under this article, a penalty of fifty (50) percent of the tax shall be assessed against the seller required to collect such tax.

(Ord. No. 1218, 6-24-98)

 

Secs. 37-354--37-399. Reserved.

 

 

 

 

ARTICLE XIV.

 

LOCAL TECHNOLOGY ZONES

 

Sec. 37-400. Purpose and intent.

 

The city finds that the creation of three (3) local technology zones, with incentives for economic growth, as authorized by section 58.1-3850 of the Code of Virginia, will foster the development, maintenance and expansion of commercial and industrial businesses engaged in technological research and design and those using technologically advanced products to the benefit of the public health, safety, welfare and convenience through the enhancement of public revenues and the creation of employment opportunities.

(Ord. No. 1217, 6-24-98; Ord. No. 1343, 2-12-03)

 

Sec. 37-401. Administration.

 

This article shall be administered and enforced by the city manager or designee. The city manager in consultation with the commissioner of the revenue shall determine and publish the procedures for obtaining the benefits created by this article and shall be further responsible for determining whether a business is a qualified technology business or a qualified zone resident and, when necessary, shall interpret the extent and boundaries of the technology zones as set out in section 37-403 below.

(Ord. No. 1217, 6-24-98)

 

Sec. 37-402. Definitions.

 

For the purposes of this article, the following words and phrases shall have the meanings subscribed below, unless clearly indicated to the contrary:

 

Base year means the calendar year preceding the first calendar year of each five-year qualification period a business firm requests technology zone incentives.

 

Business firm means any corporation, partnership, electing small business (subchapter S) corporation, limited liability company or sole proprietorship authorized to conduct business in the Commonwealth of Virginia.

 

The term "business firm" does not include organizations which are exempt from state income tax on all income except unrelated business taxable income as defined in the Federal Internal Revenue Code, section 512; nor does it include homeowners associations as defined in the Federal Internal Revenue Code, section 528.

 

Capitalized investment is the original total capitalized costs, excluding capitalized interest, of real and personal property. Real and personal property acquired through capital leases may be included.

 

Employee of a zone establishment means a person who is on the payroll of the firm's establishment within the technology zone and is required to report to work in the technology zone.

 

Equivalent full-time employee means an employee who works a minimum of twenty (20) hours per week can be combined with another employee that works a minimum of twenty (20) hours a week to equal one full-time employee. Seasonal, temporary, leased or contract labor employees, or employees whose job function is shifted from an existing location in the city to a business firm located in the technology zone shall not qualify as equivalent full-time employees.

 

Existing business means one that was actively engaged in the conduct of trade or business in the city prior to an area being designated as a technology zone.

 

Full-time employee means an employee who is employed in a job for an indefinite duration at a business firm located in a technology zone and is required either (i) to work a minimum of thirty-five (35) hours per week for the entire normal year, in which the normal year must consist of forty-eight (48) weeks, or (ii) work a minimum of thirty-five (35) hours per week for a portion of the calendar year in which the employee was hired in a job by the firm. Seasonal, temporary, leased or contract labor employees, or employees whose job function is shifted from an existing location in the city to a business firm located in the technology zone shall not qualify as fulltime employees.

 

Net capitalized investment is equal to the prior calendar year total cost plus current calendar year acquisitions less current calendar year dispositions.

 

New business means a business not previously conducted in the city and that begins operation in a technology zone after the technology zone was designated.

 

Qualified technology business means a technology business that has met the qualifications set forth in section 37-404.

 

Qualified zone resident means an owner or tenant of real property located in the technology zone who expands or rehabilitates such property to facilitate the conduct of a qualified technology business by such owner or tenant within the technology zone.

 

Reporting to work means that the only physical location of the employee's workstation is within the technology zone and the full-time employee physically reports to the technology zone workstation on a regular basis.

 

Technology business means a business firm engaged in the activities of research, development, or manufacture of commodities used in factory automation, biotechnology, chemicals, computer hardware, computer software, defense, energy, environmental, manufacturing equipment, advanced materials, medical, pharmaceuticals, photonics, subassemblies and components, test and measurement, telecommunications, and transportation.

 

In no case will the use of computers or telecommunication services used by a business firm in its administrative operations qualify the business firm as a technology business.

Telecommunications shall mean internet, e-mail or similar services, but shall exclude voice telephone and facsimile communications except for the examples listed above for the definition of a qualified technology business.

(Ord. No. 1217, 6-24-98; Ord. No. 1262, 10-27-99)

 

Sec. 37-403. Boundaries of technology zones.

 

There are hereby created three (3) local technology zones within the city, to be named "The Downtown Technology Zone", "The Hampton Roads Center Technology Zone" and "The netcenter Technology Zone." The boundaries of the zones are respectively inside of an area circumscribed by a line described as follows:

 

(1) For the Downtown Technology Zone, starting at a point in the city at the center of the intersection of Settler's Landing Road and LaSalle Avenue; thence north on LaSalle to the railroad right-of-way; thence northwest on the railroad right-of-way to Maplewood; thence north on Maplewood to Back River; thence southeast on Back River to Heffelfinger; thence northeasterly on Heffelfinger to North Armistead Avenue; thence northwesterly on North Armistead to Interstate 64; thence along Interstate 64 east, across Hampton River to Tyler Street; thence westerly on Tyler Street to Mariner's Cove; thence northerly on Mariner's Cove to Settler's Landing Road; thence westerly on Settler's Landing Road to the midpoint of the Hampton River; thence southwesterly on the midpoint of the Hampton River to the midpoint of Salter's Creek; thence westerly on the midpoint of Salter's Creek to Whiting Street; thence westerly to Armistead Street; thence north to Settler's Landing Road; thence westerly to LaSalle Avenue which is the point of beginning. (This Technology Zone became effective on July 1, 1998 and expires June 30, 2008).

 

(2) For the Hampton Roads Center Technology Zone, starting at a point in the city at the center of the intersection of Mercury Boulevard and Interstate 64; thence along Interstate 64 west to the city boundary between the City of Hampton and the City of Newport News; thence northwesterly along said city boundary line to Saunders Road; thence easterly on Saunders Road to Big Bethel Road; thence north on Big Bethel Road to Semple Farm Road; thence easterly on Semple Farm Road to North Armistead Avenue; thence southerly on North Armistead Avenue to Mercury Boulevard; thence westerly on Mercury Boulevard to Interstate 64 which is the beginning point. (This Technology Zone became effective on July 1, 1998 and expires June 30, 2008).

 

(3) For the netcenter Technology Zone, starting at a point in the city at the center of the intersection of Mercury Boulevard and Orcutt Avenue thence west approximately one thousand seven hundred sixty (1,760) feet to the Newmarket Creek and the City of Hampton Corporate limits, thence north approximately one thousand seven hundred eighty-six (1,786) feet to the northern boundary of the Net Center parking lot, thence east approximately one thousand one hundred six (1,106) to the centerline of Kennedy Drive, thence south approximately one thousand one hundred forty-two (1,142) feet to the southwest corner of the church parcel, thence east approximately two hundred ninety-three (293) to the centerline of Orcutt Avenue, thence south approximately two hundred forty-one (241) feet to the centerline of West Mercury Boulevard. This Technology Zone will become effective on March 1, 2003 and expire February 29, 2013.

(Ord. No. 1217, 6-24-98; Ord. No. 1262, 10-27-99; Ord. No. 1343, 2-12-03)

 

Sec. 37-404. Qualifications.

 

(a) Existing business. For an existing business to become a qualified technology business the firm must increase the average number of full-time employees in the technology zone by ten (10) percent over the base year, or the average increase over the base year must constitute at least three (3) net new full-time employees to the city whichever is greater. Wages paid to the minimum threshold number of full-time employees needed to qualify must be equal to twice the federal minimum wage rate. In addition, the firm must make an added capital investment in the technology zone, which investment may be established by the capitalized cost of personal property or real estate owned for the operation of the qualified technology business.

 

(i) For an existing business located in the Downtown Hampton Technology Zone, the added capital investment must be at least fifty thousand dollars ($50,000.00).

 

(ii) For an existing business located in the Hampton Roads Center Technology Zone, the added capital investment must be at least two hundred fifty thousand dollars ($250,000.00).

 

(b) New business:

 

(i) For a new business firm to become a qualified technology business the firm must create a minimum average of three (3) full-time jobs and make an investment of at least fifty thousand dollars ($50,000.00) if located in the Downtown Hampton Technology Zone.

 

(ii) If a new business firm locates in the Hampton Roads Center Technology Zone, the technology business must create a minimum average of fifty (50) full-time jobs and make a minimum investment of two hundred fifty thousand dollars ($250,000.00).

 

(c) Existing and new business:

 

(i) For both technology zones, the added capital investment shall be established by the value of personal property or real estate owned for the operation of the qualified technology business. Such assets owned by a business firm which are moved into a technology zone from another location within the City of Hampton shall not be included in the determination of the added capital investment.

 

(ii) Wages paid to the minimum threshold number of full-time employees needed to qualify must be equal to twice the federal minimum qualifying wage rate.

 

(iii) To retain qualifying status, a business firm must maintain the minimum qualifying employment and investment levels for each year for which incentives are requested.

 

(iv) All business firms which have completed a five-year incentive period and seek to qualify for a second five-year incentive period shall be treated as an existing business for qualification purposes, and must meet the minimum job creation and investment criteria.

 

(d) Exceptions:

 

(i) For each ten thousand dollars ($10,000.00) of net new capital investment placed in the downtown technology zones above the minimum threshold of fifty thousand dollars ($50,000.00), the investment can be substituted for one full-time employee.

 

(ii) For each additional full-time or equivalent full-time employee hired to work in a technology zone above the minimum employment threshold of three (3) full-time employees or ten (10) percent, whichever is greater, the increase in full-time employment above the threshold can substitute ten thousand dollars ($10,000.00) worth of capital investment. Wages paid to employees, or stated above in this section, must be at least twice the minimum federal wage rate.

(Ord. No. 1217, 6-24-98; Ord. No. 1262, 10-27-99)

 

Sec. 37-405. Technology zone incentive package.

 

(a) Rebate of city fees. Qualified technology business shall receive a rebate of fees for building permits and renovation permits, conditional use permits, plumbing permits, electrical permits, sign permits, sewer connection fees, and zoning ordinance fees. The fees identified will only be rebated if the qualified zone resident can demonstrate that one hundred (100) percent of the cost of new construction, expansion, or rehabilitation is to house or accommodate a qualified technology business.

 

(b) Reduction in business license tax. Qualified technology businesses may receive a five-year reduction of business license fees to the extent of only those gross receipts derived from qualifying, activities. The reduction shall be calculated on the tax for qualifying gross receipts at an amount equal to eighty (80) percent in year one, sixty (60) percent in year two, forty (40) percent in year three, twenty (20) percent in year four, and twenty (20) percent in year five.

 

(c) Capital investment grants:

 

(i) There is hereby established a five-year grant provided to qualified technology businesses. The grant will be based solely on the net increase in capital investment made within the technology zone. The five-year capital investment grant will be calculated on the qualifying increase, net of any dispositions, in business personal property, real estate, and machinery and tools taxes paid by a qualified technology business. The grant will be equal to eighty (80) percent of the fractional net increase in year one, sixty (60) percent in year two, forty (40) percent in year three, twenty (20) percent in year four, and twenty (20) percent in year five.

 

(ii) Grants will be administered through the City of Hampton Industrial Development Authority (IDA). The technology zone administrator is responsible for requesting budget appropriations from the city to the IDA to meet anticipated grants.

 

(iii) Regarding capital investments acquired through capital leases, taxes paid on such items shall be eligible for the capital investment grant incentives only when the grant recipient directly pays to the City of Hampton applicable taxes for these items.

 

(d) For the purposes of calculating incentives, business license reductions and capital investment grants shall be calculated based on calendar year tax payments. The first year for which such incentives are calculated in each five-year incentive period shall be the first full calendar year following the year for which a business firm is first certified as a qualified technology business.

(Ord. No. 1217, 6-24-98; Ord. No. 1262, 10-27-99)

 

Sec. 37-406. Certification procedure.

 

(a) A business firm seeking to obtain the benefits provided under the technology zone program must make an application to the technology zone administrator for certification as a qualified technology business. All applications shall be submitted annually to the commissioner of the revenue no later than June thirtieth and will be processed within sixty (60) days of the submission. Applications received after June thirtieth will not be eligible to receive technology zone incentives.

 

(b) Applications submitted for initial certification of either a new or existing business must be submitted no later than June thirtieth of the calendar year following the calendar year in which the business first became eligible to be a qualified technology business. Applications received after June thirtieth will not be eligible to receive technology zone incentives.

 

(c) The administrator will investigate and verify that each applicant is in compliance with the technology zone qualifications.

 

(d) After a business has been certified as a qualified technology business by the technology zone administrator, the business firm must annually submit an application prior to June thirtieth, indicating the number of full-time employees employed by the firm and the amount of license tax, real estate, business personal property, and/or machinery and tools taxes paid by the business firm during the incentive period. Applications must be signed by an official representative of the business firm authorized to sign on the firm's behalf.

 

(e) Qualified technology zone residents making investments of fifteen million dollars ($15,000,000.00) and creating fifty (50) jobs shall be allowed a capital investment grant in a percentage amount determined by agreement between the Hampton Industrial Development Authority and the qualified technology zone resident, provided such percentage amount shall not exceed the percentage amount received by all other qualified technology zone businesses.

 

(f) An existing Hampton business firm shall not qualify for the Hampton Technology Zone Program by reorganizing or changing its form in a manner that does not alter the basis of the business firm's assets or result in a taxable event.

 

(g) If a qualified technology business fails to pay in full the taxes imposed by the city by the due date, this will result in the forfeiture of the investment grant for that year upon a finding by the administrator that the tax account has been delinquent for sixty (60) days.

 

(h) If a qualified technology business files for bankruptcy during the five-year incentive period, this will result in the forfeiture of any portion remaining of the investment grant.

 

(i) In the event that the qualifying average number of full-time employees falls below the threshold amount of a net increase to the city of at least ten (10) percent or an average increase of at least three (3) net new full-time employees, whichever is greater, or the added investment dollars drop below the required threshold, the business firm will forfeit any portion remaining of the investment grant.

 

(j) All qualified technology businesses must maintain their presence within the city for a period of up to five (5) years after receiving technology zone incentives. If a qualified business firm leaves during the initial five-year incentive period and conducts business outside the city, the qualified business firm will be required to repay the total amount of benefits received. A business must sign an agreement to this effect before receiving benefits.

 

(k) If a qualified business leaves the city to conduct business in another location within five (5) years of completing the five-year incentive period, the business firm will be required to repay the city a prorated amount. The proration will be based on the number of years the firm stayed after the fifth and final year of receiving technology zone incentives. For example, if a qualified business firm leaves during the sixth through the tenth year of receiving technology zone incentives, the qualified business will be required to repay a prorated amount equal to the following:

 

6th year--the firm must repay 80% of the total benefits received.

 

7th year--the firm must repay 60% of the total benefits received.

 

8th year--the firm must repay 40% of the total benefits received.

 

9th year--the firm must repay 20% of the total benefits received.

 

10th year--the firm must repay 20% of the total benefits received.

(l) A business firm may qualify for one additional five-year incentive period provided the necessary job creation and investment criteria are met during the life of the technology zone.

(Ord. No. 1217, 6-24-98; Ord. No. 1262, 10-27-99)

 

Sec. 37-407. Nonwaiver.

 

Unless expressly stated herein, this article shall not be construed to waive the requirement of any ordinance, regulation or policy of the city, including, but not limited to, those ordinances, regulations and policies that require permits and approvals for land use and construction. Additionally, unless stated otherwise herein, nothing in this article shall be construed as waiving the right of the city to enforce its ordinances, regulations or policies or to collect any taxes, fees, fines, penalties or interest imposed by law on a qualified technology business or qualified zone resident or upon real or personal property owned or leased by a qualified technology business or qualified zone resident.

(Ord. No. 1217, 6-24-98)

 

Sec. 37-408. Restrictions.

 

No qualified technology business or qualified zone resident may apply for or receive a tax or fee exemption under this article on the basis of a building permit issued or construction commenced prior to the establishment of the technology zone in which the property lies.

(Ord. No. 1217, 6-24-98)

 

Sec. 37-409. Confidentiality.

 

To the extent permitted under the Virginia Freedom of Information Act (Code of Virginia, 2.2-3700 et seq.), confidential business records shall be safeguarded from disclosure. The technology zone administrator may establish verification procedures with the commissioner of the revenue for the city, which will ensure that all required taxes have been paid, but that all privacy concerns and rights are protected.

(Ord. No. 1217, 6-24-98)

 

Sec. 37-410. Zoning ordinance not affected.

 

This article is an economic development incentive and is not a zoning change. Nothing herein shall be construed to affect any provision or requirement of the zoning ordinance.

(Ord. No. 1217, 6-24-98)

 

Sec. 37-411. Education and promotion.

 

The technology zone administrator shall develop programs to educate the public and potential businesses of the benefits of the technology zone.

(Ord. No. 1217, 6-24-98)

 

Sec. 37-412. Effective dates.

 

This article shall be effective on July 1, 1998, and shall terminate on June 30, 2008, pursuant to the ten-year limitation on local technology zones required by Virginia Code, section 58.1-3850.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on September 12, 2007.

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council