                                 CODE OF VIRGINIA

VALIDATION OF LOCAL COAL AND GAS SEVERANCE TAX ORDINANCES AND LOCAL COAL AND GAS
ROAD IMPROVEMENT TAX ORDINANCES (§ 58.1-3713.3)

A. All ordinances adopted pursuant to &#xA7;&#xA7; 58.1-3712 and 58.1-3713 prior
to October 1, 1989, shall be valid as if they had been enacted as of January 1,
1985, as long as similar ordinances had been validly enacted under the
predecessor provisions to &#xA7;&#xA7; 58.1-3712 and 58.1-3713 and in
substantial compliance therewith. Any such local tax ordinances are declared to
be validly adopted and enacted as of January 1, 1985, notwithstanding the
failure of the locality to change the reference in the local tax ordinance after
the enactment of this title, effective January 1, 1985.

B. All ordinances adopted pursuant to &#xA7;&#xA7; 58.1-3712, 58.1-3713, and
58.1-3713.4 prior to January 1, 2001, shall be valid and presumed to include all
the provisions of &#xA7;&#xA7; 58.1-3712, 58.1-3713, and 58.1-3713.4 as long as
such ordinances were in substantial compliance therewith at the time of their
adoption.

C. 1. Any locality that imposed the tax under § 58.1-3712, 58.1-3713, or
58.1-3713.4 for the 2008, 2009, 2010, or 2011 license year for coal, gas, or oil
severed from the earth prior to July 1, 2013, shall (if it has not already done
so by the effective date of this subsection) amend its local ordinance with
regard to such taxes to adopt or include the uniform ordinance provisions of §
58.1-3703.1, with the exception of subdivisions A 1 and A 3 of such section, in
the local ordinance with an effective date retroactive to the 2008 license year.
As of the effective date of this subsection, each such locality shall allow all
persons assessed with such taxes for the 2008 license year or any license year
thereafter to exercise all rights and remedies under § 58.1-3703.1, provided
that subdivisions A 1 and A 3 of such section shall be inapplicable for purposes
of the imposition, collection, or appeal of such taxes. Such rights and remedies
shall include, but shall not be limited to, the appeal procedures set forth
under subdivisions A 5, A 6, and A 7 of § 58.1-3703.1. In addition, each such
locality, upon the provisions of this subsection becoming effective, shall
within 60 days thereof provide written notice to all persons upon whom the
locality imposed one or more of the taxes under § 58.1-3712, 58.1-3713, or
58.1-3713.4 for license year 2008, 2009, 2010, or 2011 for coal, gas, or oil
severed from the earth prior to July 1, 2013, informing the person that the
locality has adopted or will adopt the uniform ordinance provisions of §
58.1-3703.1 with regard to such taxes, excluding subdivisions A 1 and A 3 of
such section, retroactive to the 2008 license year and for each license year
thereafter.

   2. Any locality described in subdivision 1 that amends its local ordinance
   with regard to such taxes, or has amended the same prior to the effective date
   of this subsection, to expressly include, incorporate by reference, or adopt
   by incorporation the uniform ordinance provisions of &#xA7; 58.1-3703.1 shall
   have met the requirement under subdivision 1 to amend its local ordinance with
   regard to such taxes, provided that the locality on or after the effective
   date of this subsection further amends its local ordinance to make such
   inclusion, incorporation by reference, or adoption by incorporation
   retroactive to the 2008 license year. Nothing in this subdivision shall
   relieve the locality from (i) the notice requirements under subdivision 1 or
   (ii) the requirement under subdivision 1 to allow all persons assessed with
   such taxes for the 2008 license year or any license year thereafter to
   exercise all rights and remedies under &#xA7; 58.1-3703.1 except that
   subdivisions A 1 and A 3 of such section shall be inapplicable for purposes of
   the imposition, collection, or appeal of such taxes.

   3. Each locality amending its ordinance pursuant to subdivision 1 or 2 shall
   amend its ordinance in accordance with the respective subdivision within 90
   days of the effective date of this subsection.

   4. Each local ordinance amended as provided under this subsection shall be
   deemed valid and properly enacted for purposes of any tax imposed pursuant to
   &#xA7; 58.1-3712, 58.1-3713, or 58.1-3713.4 for license year 2008, 2009, 2010,
   2011, or 2012 for coal, gas, or oil severed from the earth prior to July 1,
   2013. Further, each such ordinance shall be deemed to have met the requirement
   of subsection A of &#xA7; 58.1-3703.1 to include in the local ordinance
   provisions substantially similar to those set forth under such subsection.

   5. a. Notwithstanding any other provision of law, any person assessed with a
   license tax under &#xA7; 58.1-3712, 58.1-3713, or 58.1-3713.4 for license year
   2008, 2009, 2010, 2011, 2012, or 2013 for coal, gas, or oil severed from the
   earth prior to July 1, 2013, shall be allowed to file an administrative appeal
   of the same under &#xA7; 58.1-3703.1 to the commissioner of the revenue or
   other local assessing official only during the period beginning July 1, 2013,
   and ending July 1, 2014. Such person shall be allowed to file the
   administrative appeal regardless of whether an appealable event, as defined in
   &#xA7; 58.1-3703.1, occurs on or after the effective date of this subsection.
   Such appeal to the commissioner of the revenue or other local assessing
   official may be further appealed to the Tax Commissioner pursuant to
   subdivision A 6 of &#xA7; 58.1-3703.1 and to the appropriate circuit court
   pursuant to subdivision A 7 of &#xA7; 58.1-3703.1, in accordance with the
   procedures and time frames for the appeal as provided under the respective
   subdivision.
   				If a locality, however, makes an additional assessment of tax on or after
   January 1, 2014, for license year 2013, 2012, or 2011 for coal, gas, or oil
   severed from the earth prior to July 1, 2013, then such additional assessment
   may be appealed within the time frame provided under &#xA7; 58.1-3703.1
   notwithstanding the provisions of this subdivision.
   				b. Notwithstanding any other provision of law, any person assessed with a
   license tax under &#xA7; 58.1-3712, 58.1-3713, or 58.1-3713.4 for license year
   2008, 2009, 2010, 2011, 2012, or 2013 for coal, gas, or oil severed from the
   earth prior to July 1, 2013, who elects not to file an appeal of the same
   pursuant to &#xA7; 58.1-3703.1 may apply for relief of the same pursuant to
   &#xA7; 58.1-3980 or 58.1-3984 only during the period beginning July 1, 2013,
   and ending July 1, 2014. If such person elects not to file an appeal of such
   license tax pursuant to &#xA7; 58.1-3703.1 but applies for relief of the same
   pursuant to &#xA7; 58.1-3980 or 58.1-3984, then the period for collecting any
   such license tax shall expire as provided in &#xA7; 58.1-3940, two years after
   a final determination pursuant to &#xA7; 58.1-3981, or two years after the
   final decision in a court application pursuant to &#xA7; 58.1-3984, whichever
   is later.
   				If a locality, however, makes an additional assessment of tax on or after
   January 1, 2014, for license year 2013, 2012, or 2011 for coal, gas, or oil
   severed from the earth prior to July 1, 2013, then such person so assessed may
   apply for relief of such assessment pursuant to &#xA7; 58.1-3980 or 58.1-3984
   within the time frame provided under the applicable section notwithstanding
   the provisions of this subdivision, and the period for collecting any such
   additional assessment shall be as provided under Title 58.1 or other
   controlling law notwithstanding the provisions of this subdivision.
   				c. Notwithstanding the provisions of &#xA7; 58.1-3940, the period for
   collecting any license tax imposed under &#xA7; 58.1-3712, 58.1-3713, or
   58.1-3713.4 for license years 2008 and 2009 for coal, gas, or oil severed from
   the earth prior to July 1, 2013, shall expire on January 1, 2016, unless a
   longer period is provided under law.
   				d. Notwithstanding any other provision of law, collection activity shall
   be suspended on the assessment of additional license tax for license year
   2008, 2009, 2010, or 2011 for coal, gas, or oil severed from the earth prior
   to July 1, 2013, pursuant to &#xA7; 58.1-3712, 58.1-3713, or 58.1-3713.4. In
   addition, collection activity shall be suspended on the assessment of
   additional license tax for license year 2012 or 2013 for such taxes on coal,
   gas, or oil severed from the earth prior to July 1, 2013, provided that, in
   filing severance tax returns for the severance of coal, gases, or oil from the
   earth in the locality in license year 2012 and 2013, the person filing the
   return includes with the return a good faith payment of the tax due or a good
   faith report of the tax due. The good faith payment or report of tax due shall
   be in accordance with the methodology used by that person as of January 1,
   2010, to report the person&#8217;s gross receipts to the locality for purposes
   of such taxes unless such person and the locality have entered into a contract
   or agreement on an alternate methodology to report the person&#8217;s gross
   receipts. As used in this subsection, &#8220;additional license tax&#8221;
   means all amounts of license tax, penalty, and interest that are in addition
   to the amount of license tax paid by a person or reported by a person as due
   in filing severance tax returns for the severance of coal, gases, or oil from
   the earth in the locality. Collection activity shall not be required to be
   suspended if collection of any tax, interest, or penalty is jeopardized by
   delay as defined in &#xA7; 58.1-3703.1. However, nothing herein shall be
   construed or interpreted as to require the suspension of collection activity
   for any amount of unpaid license tax (and any interest and penalty related
   thereto) reported by a person as due in filing a severance tax return for the
   severance of coal, gas, or oil from the earth.
   				Collection activity on additional license tax for license year 2008, 2009,
   2010, or 2011 for coal, gas, or oil severed from the earth prior to July 1,
   2013, may commence on July 1, 2013, unless other law requires the suspension
   of collection activity. Collection activity on additional license tax for
   license year 2012 or 2013 for coal, gas, or oil severed from the earth prior
   to July 1, 2013, if suspended pursuant to this subdivision, may commence on or
   after July 1, 2013, unless other law requires the suspension of collection
   activity.

   6. Except as otherwise provided in subdivision 5, nothing in this subsection
   shall be construed or interpreted as extending or decreasing any limitations
   period for appealing any of the taxes imposed under &#xA7; 58.1-3712,
   58.1-3713, or 58.1-3713.4 for coal, gas, or oil severed from the earth prior
   to July 1, 2013, or extending any period for the collection of such taxes.

HISTORY: 1989, c. 380; 2001, cc. 294, 303; 2012, cc. 665, 722; 2013, cc. 208,
305, 391, 618; 2016, c. 305.