Title
Resolution to Approve the Refund of Certain Erroneously Assessed Business Taxes
Purpose
PURPOSE/BACKGROUND:
The City Treasurer shall issue refunds of local tax, penalty, and interest assessed and paid, owing to a taxpayer due to an erroneous assessment. Pursuant to Hampton City Code Section 37-2(b) and Code of Virginia Section 58.1-3981, no refund in excess of $10,000 per assessment shall be made until the amount is approved by the City Attorney and the City Council.
Discussion:
The City's Commissioner of the Revenue has given notice to the Treasurer of an account owed refunds for certain erroneously assessed and paid business taxes, any related penalty and interest paid, and other interest payable pursuant to Code of Virginia Sec. 58.1-3916, as follows:
Fastenal Company $71,822.54
The amount stated above includes all tax, penalty, and interest for all years. Specific delineation of tax, tax year, tax type, penalty, and interest amounts are not included due to the Commissioner’s obligation pursuant to Code of Virginia Sec. 58.1-3 to not divulge (directly or indirectly) any information acquired by him in the performance of his duties with respect to the transactions, property, including personal property, income or business of any person, firm or corporation.
With respect to the funding source available to tender those payments, Finance maintains a refund account for this purpose that is an offset to the impacted tax revenue accounts.
Recommendation:
Rec
Approve the Resolution.
Body
WHEREAS, pursuant to Hampton City Code Section 37-2(b), the City Treasurer shall issue refunds of local tax, penalty, and interest owing to taxpayer, except that no refund in excess of $10,000 per assessment for tax, penalty, and interest, until the amount of the refund is approved by City Council in accordance with Code of Virginia Section 58.1-3981;
WHEREAS, pursuant to Code of Virginia Section 58.1-3981(A), if an assessment has been paid, the governing body of the county or city shall, upon certification of the assessing official and the city attorney, that an assessment is erroneous, direct the treasurer to refund the excess paid, with interest if so authorized;
WHEREAS, the City's Commissioner of the Revenue, who is responsible for the assessment of certain business taxes, has certified that the refund of certain business tax, penalty, and interest, as applicable, are due to Fastenal Company and the City Attorney agrees that the assessment was erroneous in the amount of $71,822.54; and
WHEREAS, the Treasurer has certified that those business taxes were paid by the business.
NOW THEREFORE, the City Council of the City of Hampton, Virginia directs the Treasurer to issue the following refund to Fastenal Company in the amount of $71,822.54, and any additional interest accrued thereon until refunded by the Treasurer.