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CHAPTER ONE PART TWO

Requirements for Notice and Public Hearings

Two sections of the Code delineate certain requirements for the public notification whenever, as a result of any annual or general reassessment, changes occur in either the assessed value of real estate or in the total amount of real estate taxes collected.

The first of these provisions concerns notice to property owners or changes in assessment. According to this statute, whenever there is a reassessment of real estate, or any change in assessed value of real estate, notice must be given to each property owner whose assessment has changed. The assessing officer or other person making the reassessment is responsible for sending this notice, which must be sent by postpaid mail at least fifteen (15) days prior to the date of a hearing to protest such a change. This notice must contain the magisterial or other district in which the real estate is located and provide the new appraisal of the land and of any improvements. The notice must also state the time and place at which persons may appear before the appropriate assessing officer to make their objections known. This section further requires that any person, firm, or corporation receiving a tax bill on behalf of a property owner must immediately mail or otherwise transmit the notice to the owner at his last known address.

The second Code provision addresses the situation in which any annual or general reassessment of real property results in an increase of at least one (1%) percent over the total amount of real estate taxes collected the previous year. Whenever this situation occurs, the local jurisdiction must exercise one of two options: either (1) reduce its tax rate so as to produce no more than 101 percent of the previous year’s real estate taxes or (2) conduct a public hearing, after which the tax rate may be increased above the previously mentioned reduced rate if the local governing body deems such an increase to be necessary. If a public hearing is held, proper notice must be given not less than thirty (30) days before the date of the hearing, which must be open to the public.

Assessment Records

In addition to the inventory of tax exempt already discussed, there are certain other legal requirements relating to the information that must be retained by assessing officers as part of their official assessment records. Closely related to these requirements are statutes concerning the confidential nature of certain assessment records and the disclosure of others which must be made available to the taxpayers.

Form of the Land Book

The land book, which is basically the collection of individual assessments and amount if taxes due on each parcel within the city, county, or town is required of each jurisdiction upon completion of its general reassessment. The Department of Taxation provides the form of the land book to be used by the commissioners, specifically in areas where the Department of Taxation has assisted in the computation of the assessments.

Apportionment of Land and Building Assessments

The Code requires that the land book of town or city lots must list the name of the owner, his residence and estate as in the table of the tracts of land. In other columns shall be listed the lot number, the name of the city or town (if not listed in the caption of the table), a description of the lot or part-lot owned by the person, the value of the building(s) on the lot, the value of the lot including the building(s), the amount of tax at the legal rate, and the source of title.

Classifications of Real Estate

The Tax Commissioner is required to establish a classification system of real property to be included on the local land books with a minimum single digit land-use code of seven basic categories. The classification should be placed on the land books and organized in a manner appropriate with the identification of classifications in order that the annual sales ratio studies would comply with these basic classifications. These basic classifications may be subdivided into lesser categories if deemed necessary by the local assessing officer.

Property Appraisal Cards or Sheets

This section requires that each assessing officer maintain current property records or sheets for all parcels of real estate assessed and assessable by him. These cards shall include the appraised value of property and improvements and the calculations used in determining the assessed value of the property and improvements.

It should be noted that the law requiring property record cards, classification of real property, and the land books should be considered as minimum requirements for a successful assessment office. 

Confidentiality of Information

The assessing officer has the responsibility for collecting information which will enable him to fairly and equitably assess all properties within his jurisdiction, in order that the burden is equally distributed. Certain information which the assessor may need to obtain is of a confidential nature and cannot be divulged. The code specifically restricts the divulging of such information, as follows:

Except in accordance with proper judicial order, as otherwise provided by law, it shall be unlawful for the Tax Commissioner or any agent, clerk, commissioner of the revenue, treasurer, or any other state or local tax or revenue office or employee to divulge any information acquired by him in respect to the transaction, property, income or business or any person, firm or corporation while in the performance of his duties. 

However, the secrecy of information is later qualified by the following wording:

...this inhibition does not extend to any matters required by law to be entered on any public assessment roll or book nor...to the sales price, date of construction, physical dimensions or characteristics of real property or to any information required for building permits. 

Basically, this section of the Code restricts the assessing officer from giving out information he has collected in confidence. It does not prohibit him from making available information which may be collected from and is available from other sources; nor does it prohibit the publication of statistics as long as they are classified in such a way as to prevent the identification of particular owners and statements.

Public Disclosure of Certain Assessment Records

All property appraisal cards or sheets within the custody of the assessing officer, except those which contain confidential information (as defined in the preceding section), must be open for inspection during normal office hours for review by any taxpayer or his representative. In addition, any taxpayer or his representative shall, upon request, be allowed to examine the working papers used by the assessor in arriving at the appraised and assessed value of his land and improvements. According to the act’s provisions, the assessor is allowed to fix a limited period within the regular office hours when the records should be available; but this time period may not be less than four hours per day, Monday through Friday, except on days when the office is otherwise closed. This does not negate any of the restrictions of the secrecy of information statute. Rather, it requires the assessor to make available to the taxpayer that information allowable under law. Therefore, every assessing officer should be thoroughly familiar with the legal constraints placed upon him regarding the public disclosure of assessment records.

Correction and Equalization of Assessments

Even the most highly skilled, experienced , and judicious assessing official will sometimes encounter situations in which taxpayers feel that their property assessments are in error. State statutes have established two avenues whereby an aggrieved taxpayer may appeal the value placed on his property: Through application either (1) to the local board of equalization or (2) to the circuit court of the city or county.

Action by the Court

Any person who feels that his property has been assessed at more than its fair market value, or that the assessment is not uniform in comparison with the surrounding properties, may make application for correction to the circuit court of the county or the city in which the assessment was made. This application must be made within three years from the last day of the tax year for which the assessment was made. While the taxpayer holds the burden of proving that the property in question was, in fact, assessed improperly, he does not need to show that intentional, systematic, and willful discrimination was involved. Whenever application has been made to the court, either the city or county attorney (or the Commonwealth’s attorney if there is no city or county attorney) must defend the assessment.

If the court finds, based on the evidence presented, that the assessment exceeds the proper amount, then the court has the power to reduce the assessment to reflect what, in its opinion, is the estimated fair market value of the property in question. At the same time, the applicant is exonerated from the payment of any erroneously charged taxes which resulted from that portion of the assessment found to be excessive. If the tax bill has already been paid, then that portion erroneously charged must be refunded. Conversely, if the court finds that the assessment is less than the proper amount, then the court must order the assessment increased to an amount which, in its opinion, is a reflection of the property’s fair market value and shall order the applicant to pay their proper taxes. Whenever a correction in a real estate assessment is ordered by the court (whether that correction results in an increase or decrease), the Clerk of the Court must certify to the proper assessing official the changes made by the court, in order that the changes can be noted in the land books.

The Board of Equalization

The local board of equalization is charged by law with hearing and giving consideration to complaints concerning real estate assessments, not only from property owners but also from the City Council of Board of Supervisors through their appointed representative or attorney. Additionally, the equalization board has the responsibility to increase or decrease individual assessments whether a complaint has been made or not, if, in the board’s opinion, such adjustments are necessary to equalize the tax burden upon all citizens in the jurisdiction. Also, in the performance of its duties, the equalization board may inspect any real estate which is subject to equalization. 

Membership on the Board of Equalization

In most cases, the members of the board of equalization are appointed by the Circuit Court from among the citizens of the county or the city. However, in some localities a board of equalization is created and appointed by resolution, but only upon request of the local governing body. In order to be eligible for appointment, each prospective member of such board shall attend and participate in the basic course of instruction given by the Department of Taxation. A board of equalization must consist of three to five members, each of whom must be a freeholder in the county or city for which he serves. Each board member receives per diem compensation for the time actually spent performing the duties of the board. This compensation is determined by the local body, which may also limit the total compensation to a specific number of days that, in the governing body’s opinion, is sufficient time for the board to complete its duties.

Activities of the Board of Equalization

The board of equalization is required to meet for whatever length of time is necessary to discharge its required duties and to dispose of applications for relief made to the board. However, the local governing body may, by ordinance, stipulate a date by which applications must be made by property owners to the board, as well as, a deadline by which the board must dispose of all such applications. Such deadlines, if imposed, must be clearly stated on the notice of assessment. State law further requires that, at least ten (10) days prior to each sitting of the board, proper notice be published in a newspaper having general circulation in the city of county, informing the public of the place and the days on which the board will sit.

The board of equalization must hear all petitions made to it, by order (either as the result of a complaint or upon its own motion), increase or decrease an assessment in order to rectify an error or equalize the tax burden. However, the board cannot increase an assessment until after the property owner has been notified, and, if he has not already been heard by the board, given the opportunity to show cause against such an increase.

In performing its required duties, the board of equalization must have access to the land book of the city or county, according to specific Code provisions. The board also has the authority to summon any taxpayer or other person for the following purposes: (1)furnishing information relating to the real estate of any and all taxpayers; (2) answering, under oath, all questions pertinent to the ownership and value of real estate of any and all taxpayers; (3) bringing before the board their books of account or other papers and records containing information which would reflect the value of any real estate under review by the board. Any person who refuses to answer the summons made by the equalization board or to make available the requested records is guilty of a misdemeanor.

Appeals

The decisions of the board of equalization are subject to further appeal. Either the taxpayer or the attorney for the county, city or town, if aggrieved by the board’s decision, may apply to the Circuit Court of the county or the city for appeal. Such an appeal must be in the same manner and within the same time frame as prescribed by law for the correction of erroneous assessment. 

Role of the State Department of Taxation

The Department of Taxation is charged with the administration of the tax laws of the Commonwealth. In exercising this responsibility, the Department performs several functions which are directly related to the assessment of property. 

Assistance to Localities

Upon request, the Department assists localities with the request for proposal process when a locality is seeking bids for reassessment services. The Department also assists local boards of equalization at their requests or at the request of ten citizens.

The Department assists commissioners of the revenue and assessors with the assessment of extraordinary or unusual real estate and also assists commissioners of the revenue with the assessment of tangible personal property, merchant’s capital, and machinery and tools.

Assessment of Railroads and Interstate Pipeline Companies

The Department is designated as the central state agency to assess certain property of railroads and interstate pipeline companies. The Department assesses the rolling stock of railroads and private freight car companies. This revenue is paid into the general fund of the Commonwealth and is distributed to the localities according to a statutory formula.

Non-carrier property if railroad companies is certified to the localities for valuation and assessment. Carrier property of railroad companies and all real and tangible property of interstate pipeline companies is valued by the Department and the values are certified to the localities.

Assessment/Sales Ration Studies

The Department is required to annually collect property tax data necessary to make comprehensive assessment/sales ration studies for every major class of real property in each county and city. The results of the study are used in the school fund distribution formula and the assessment of public service corporations. These companies include public utilities such as electric, gas and telephone companies as well as railroad and pipeline transmission companies. The ration study is published each year by the Department and must be posted in the office of each local assessing official.

Role of the State Corporation Commission

The State Corporation Commission (SCC) is designated as the central state agency to assess for taxation the real estate and personal property of all public service corporations except those which fall under the jurisdiction of the Department of Taxation. The commission assesses this property and certifies the values to the various localities.

The Commission also assesses the rolling stock of certain transportation companies which operate under certificates of necessity and convenience as common carriers over regular routes issued by the SCC. These taxes are paid into the general fund of the Commonwealth and distributed to the localities by statutory formula.

Copyright 2005, Virginia Association of Assessing Officers