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19921013 1992-32ORDINANCE NO. 1992- 32 AN ORDINANCE AMENDING AND RENUMBERING SECTIONS 8-3, 8-3.1, 8-3.2, AND 8.3.3 OF ARTICLE I, CHAPTER 8 OF THE CODE OF THE CITY OF FAIRFAX AND ADDING THERETO SECTIONS 8-3.4 THROUGH 8-3.12 AND SECTION 8-4.1 CONCERNING PERSONAL PROPERTY TAXES, SITUS, EXEMPTIONS, FILING DATES, PAYMENT DATES, PENALTY, INTEREST, WAIVER, PRORATION OF SUCH TAXES, CRIMINAL PENALTIES FOR FAILURE TO FILE RETURNS AND FALSE STATEMENTS. 1. BE IT ORDAINED by the City Council of the City of Fairfax, Virginia that Sections 8-3, 8-3.1, 8-3.2 and 8-3.3 of Article I, Chapter 8 of the Code of the City of Fairfax are hereby amended and renumbered and new Sections 8-3.4 through 8-3.12 and 8-4.1 are added to such article and chapter to read in their entirety as follows: Sec. 8-3. Personal Property Tax. Except as provided in Sections 8-3.2 and 8-3.8, there is hereby imposed and levied a personal property tax on the assessed value of all tangible personal property and machinery and tools as classified in Title 58.1, Chapter 35 of the Code of Virginia, as amended, with a situs in the city as of January 1 of each year at a rate or rates established annually by the city council. Sec. 8-3.1. Situs. The situs for personal property and machinery and tools shall be as set forth in Title 58.1, Chapter 35 of the Code of Virginia, as amended. Sec 8-3.2. Exemptions. The following classes of personal property shall be exempt from taxation: (a) Household goods and personal effects as defined in Section 58.1-3504 of the Code of Virginia, as amended; and 1 1992-32 (b) Farm animals, grains and feeds used for thn nurture of farm animals, farm machinery, implements and equipment as defined in Section 58.1-3505 of the Code of Virginia, as amended. Sec. ~ 8-3.3. ~ ...... , ............ pay t duc; intcrcst. Filing date, penalty for failure to file. (a) Except where personal property taxes are prorated as provided by law, ~every person owning o_~r leasing tangible personal property subject to taxation shall file a return with the commissioner of the revenue declaring the same on or before May 1 in the year in which such property is subject to taxation by the city. For the failure to timely file such a return, the commissioner of the revenue shall assess a penalty of ten (10) per cent of the amount of the tax assessable ~th ....... ~S .... d ~ ~~.. d~ll~ ~y ..... ,, ~.~.~^-. Such penalty for late filing shall be assessed on the day after the return is due. Such penalty shall become part of the tax and shall be due and payable at the time that the tax assessed is due and payable and, if ............... part ~f thc tax. 2 1992-32 Sec. 8-3.4. Extension of time to file tangible business personal property and machinery and tools tax returns. An extension of time, not to exceed sixty (60) days, for filing tangible business personal property and machinery and tools returns may be granted by th~ commissioner of the revenue if, in the opinion of thm commissioner, good cause exists. Each application for an extension of time shall be filed in writing with thm commissioner before the May 1 filing deadline on forms provided by the commissioner. The commissioner shall keep a record of every such extension. If any person who has been granted an extension of time for filing a return fails to file such return within the extended time, such case shall be treated the same as if no extension had been granted. Sec. 8-3.5. Payment Date. Except where personal property taxes are prorated by law, all taxes on tangible personal property and machinery and tools shall be due and payable on December 5 in the year assessed and, if not timely paid, shall be subject to a penalty of ten (10) per cent of the amount of the tax payable. Any penalties when so assessed shall become part of the tax. Sec. ~ 8-3.6. Interest. %cb~ Intcrcst. In addition to such penalties, interest shall be imposed on such delinquent taxes including penalties from the first day following the day such taxes are due. The rate of interest on delinquent taxes shall be as follows: Ten (10) per cent during the first year of delinquency; and thereafter at the rate of interest established from time to time pursuant to Section 58.1-3916 of the Code of Virqinia, as amended. 3 1992-32 Sec. ~ 8-3.7. Minimum Tax. ~=~ In any where case a tax bill docs .not cxccod amounts to less than five dollars ($5.00), the treasurer shall not send a bill to such taxpayer. Sec. 8-3.8. Proration of personal property tax on motor vehicles. (a) Personal Property Tax. Effective January 1, 1993, a personal property tax shall be levied and collected on all motor vehicles which have acquired a situs in the city after January 1 of each year for the balance of such tax year. When a motor vehicle with a situs in the city is transferred to a new owner within the city, the tax on the motor vehicle shall be prorated to the new owner for the portion of the tax year during which the new owner owns the motor vehicle. When a motor vehicle loses its situs within the city or has its title transferred after January 1 of the tax year, the taxpayer shall, upon application to the commissioner of the revenue, be relieved from the tax, prorated on a monthly basis, and receive from the treasurer a refund or credit, at the option of the taxpayer, for the tax already paid, provided that such application is made within three (3) years from the last day of the tax year during which the motor vehicle lost its situs in the city or title was transferred. No refund or credit shall be made if the motor vehicle acquires a situs within the Commonwealth in a nonprorating locality. For purposes of proration, a 1992-32 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. Any person who moves from the nonproratinq locality into the city in a sinqle tax year shall be entitled to ,i, property tax credit in the city if (i) the person wa~ liable for personal property taxes on a motor vehicle and has paid those taxes to a nonprorating locality and (ii) the owner replaces for any reason the original vehicln upon which taxes are due to the nonproratinq locality for the same tax year. The city shall provide a credit aqainst the total tax due on the replacement vehicle in an amount equal to the tax paid to the nonprorating locality for the period of time commencing with th~ disposition of the original vehicle and continuing through the close of the tax year in which the owner incurred tax liability to the nonproratinq locality for the original vehicle. (b) Filinq Dates, penalty. Effective January 1, 1993, tax returns for all motor vehicles which acquire a situs within the city or have title transferred on January 2 through April 2 of the tax year shall be filed on or before May 1 of the tax year. Motor vehicles which acquire a situs in the city or have title transferred on or after April 2 of the tax year shall be filed within thirty (30) days of the date on which the situs is acquired or title transferred. Any person failing to file a personal property return on motor vehicles am required by law shall incur a penalty of ten percent (10%) of the taxes assessed. Such penalty for late filinq shall be assessed on the day after the return is due. Such penalty shall become part of the tax and b~ due and payable at the t~me that the tax assessed is duo and payable. 5 1992-32 (C) Payment Dates. Effective January 1, 1993, payment of taxes for any motor vehicle which acquired a situs in the city or have title transferred on or before September 30 of the tax year shall be paid on or befor~ December 5 of the tax year. Taxes on motor vehicles which acquire a situs in the city after September 30 shall be paid on or before February 15 of the following year. Taxes not paid by the due dates as required by law are subject to a penalty of ten (10) per cent of the amount of tax payable. Any penalties herein when so assessed shall become part of the tax. In addition to such penalties, interest shall be imposed on such delinquent taxes includinq penalties from the first day following the day such taxes are due. The rate of interest on delinquent taxes shall be as follows: Ten (10) per cent durinq the first year of delinquency; and thereafter at the rate of interest established pursuant to Section 58.1-3916 of the Code of Virginia, as amended. (d) Exemption when taxes paid elsewhere in the Commonwealth. Effective January 1, 1993, an exemption from prorated personal property taxes and any penalties arisinq therefrom shall be qranted for any tax year or portion thereof during which the property was legally assessed by another jurisdiction in the Commonwealth and such tax on the assessed property was paid. Sec. ~ 8-3.9. Waiver of Penalties. ~,'~ The commissioner of the revenue may waive the fili lty ib i late ng pena descr ed n this section and the e~ treasurer may waive the late p y p lty ~ ~ '~ ab .... nd a ment ena ~ .... ~A~ ~ ....... ~A_ interest described in~.b_~t~--~,'~' --~.~ this section, when in the judgement of the commissioner of the revenue the failure to file the return or when in the judgement 1992-32 of the ~ treasurer the failure to pay the tax was not in any way the fault of the taxpayer or was the fault of the commissioner of the revenue or the treasurer, as the case may be. The failure to file a return or to pay a tax due to a medically determinable physical or mental impairment on the date the return or tax is due shall be presumptive proof of lack of fault on the taxpayer's part, provided the return is filed or the taxes are paid within thirty days of the due date; however, this provision shall not apply if there is a committee, legal guardian or other fiduciary handling the individual's affairs. A request for such a waiver of penalty and/or interest may not be considered unless it is in writing. Upon written request for such a waiver, the officer or officers with the authority to grant the request shall make and retain for three (3) years a written determination of that request. Sec. ~ 8-3.10. Additional charge for returned check. Sec. ~ 8-3.11. Payments by credit card. Sec. ~ 8-3.12 Administrative cost. Sec. 8-4.1. Criminal penalties for failure to file returns; false statements. It shall be unlawful for any person to willfully fail or refuse to file any tangible personal property or machinery and tools tax return at the time or times required by the provisions of this chapter or to mak~ 7 1992-32 false statements with intent to defraud in such returns. Such person shall be quilty of (a) a Class three misdemeanor of the amount of the tax lawfully assessed in connection with the return is one thousand dollars ($1,000.00) or less; or (b) a Class one misdemeanor in the amount of the tax lawfully assessed in connection with the return is more than one thousand dollars .($1,ooo.oo). 2. BE IT FURTHER ORDAINED that the remaining subsections of the sections hereby amended shall continue to read as previously enacted. This ordinance shall become effective as provided by law. INTRODUCED : PUBLIC HEARING : ADOPTED : September 22, 1992 October 13, 1992 October 13, 1992 ATTEST: ~ ~2ity Clerk DATE