(a) Following the issuance of a final determination of the Tax Commissioner pursuant to section 58.1-3703.1 of the Code of Virginia and section 840.07(b), the taxpayer or Commissioner of the Revenue may apply to the appropriate circuit court for judicial review of the determination, or any part thereof, pursuant to § 58.1-3984 of the Code of Virginia, as amended. In any such proceeding for judicial review of a determination of the Tax Commissioner, the burden shall be on the party challenging the determination of the Tax Commissioner, or any part thereof, to show that the ruling of the Tax Commissioner is erroneous with respect to the part challenged. Neither the Tax Commissioner nor the Department of Taxation shall be made a party to an application to correct an assessment merely because the Tax Commissioner has ruled on it.
(b) Suspension of payment of disputed amount of tax due upon taxpayer's notice of intent to initiate judicial review.
(1) On receipt of a notice of intent to file an application for judicial review, pursuant to Section 58.1-3984 of the Code of Virginia, as amended, of a determination of the Tax Commissioner pursuant to section 58.1-3703.1 of the Code of Virginia and section 840.07(b), and upon payment of the amount of the tax that is not in dispute together with any penalty and interest then due with respect to such undisputed portion of the tax, the Treasurer or other collection official shall further suspend collection activity while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that (i) the taxpayer's application for judicial review is frivolous, as defined in section 58.1-3703.1 of the Code of Virginia and subsection 840.01; (ii) collection would be jeopardized by delay, as defined in the same section 58.1-3703.1 of the Code of Virginia and subsection 840.01 of this Chapter 840 or (iii) suspension of collection would cause substantial economic hardship to the County as described in section 58.1-3703.1 of the Code of Virginia. Interest shall accrue in accordance with the provisions of section 58.1-3703.1 of the Code of Virginia, but no further penalty shall be imposed while collection action is suspended.
(2) Upon a determination that the appeal is frivolous, that collection may be jeopardized by delay, or that suspension of collection would result in substantial economic hardship to the County, the court may require the taxpayer to pay the amount in dispute or a portion thereof, or to provide surety for payment of the amount in dispute in a form acceptable to the court.
(3) No suspension of collection activity shall be required if the application for judicial review fails to identify with particularity the amount in dispute.
(4) The requirement that collection activity be suspended shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.
(5) The suspension of collection activity authorized by this section shall not be applicable to any appeal of a local license tax that is initiated by the direct filing of an action pursuant to § 58.1-3984 without prior exhaustion of the administrative appeals provided by section 58.1-3701.1 of the Code of Virginia and section 840.07.
(c) Suspension of payment of disputed amount of refund due upon County’s notice of intent to initiate judicial review.
(1) Payment of any refund determined to be due pursuant to the determination of the Tax Commissioner of an appeal pursuant to section 58.1-3703.1 of the Code of Virginia and subsection 840.07(b) shall be suspended if the County assessing the tax serves upon the taxpayer, within 60 days of the date of the determination of the Tax Commissioner, a notice of intent to file an application for judicial review of the Tax Commissioner's determination pursuant to Section 58.1-3984 and pays the amount of the refund not in dispute, including tax and accrued interest. Payment of such refund shall remain suspended while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that the County’s application for judicial review is frivolous, as defined in Section 58.1-3703.1 of the Code of Virginia and section 840.01.
(2) No suspension of refund activity shall be permitted if the County’s application for judicial review fails to identify with particularity the amount in dispute.
(3) The suspension of the obligation to make a refund shall cease unless an application for judicial review pursuant to § 58.1-3984 is filed and served on the necessary parties within 30 days of the service of the notice of intent to file such application.
(d) The existence or utilization by a taxpayer of the judicial review of determination of the Tax Commissioner provided in section 58.1-3703.1 of the Code of Virginia and this section does not affect the taxpayer’s right to pursue other judicial appeals as authorized by law.
(Ord. 11-18. Passed 12-12-11; Ord. 22-16. Passed 10-12-22.)