                                 CODE OF VIRGINIA

COUNTIES, CITIES, AND TOWNS MAY PROVIDE DATES FOR FILING RETURNS AND SET
PENALTIES, INTEREST, ETC (§ 58.1-3916)

Notwithstanding provisions contained in §§ 58.1-3518, 58.1-3900, 58.1-3913,
58.1-3915, and 58.1-3918, the governing body of any county, city, or town may
provide by ordinance the time for filing local license applications and annual
returns of taxable tangible personal property, machinery and tools, and
merchants&#8217; capital. The governing body may also by ordinance establish due
dates for the payment of local taxes; may provide that payment be made in a
single installment or in two equal installments; may offer options, which may
include coupon books and payroll deductions, which allow the taxpayer to
determine whether to pay the tangible personal property tax through monthly,
bimonthly, quarterly, or semiannual installments or in a lump sum, provided such
taxes are paid in full by the final due date; may provide by ordinance penalties
for failure to file such applications and returns and for nonpayment in time;
may provide for payment of interest on delinquent taxes; and may provide for the
recovery of reasonable attorney&#8217;s or collection agency&#8217;s fees
actually contracted for, not to exceed 20 percent of the delinquent taxes and
other charges so collected. A locality that provides for payment of interest on
delinquent taxes shall provide for interest at the same rate on overpayments due
to erroneously assessed taxes to be paid to the taxpayer, provided that no
interest shall be required to be paid on such refund if (i) the amount of the
refund is $10 or less or (ii) the refund is the result of proration pursuant to
§ 58.1-3516. A court that finds that an overpayment of local taxes has been
made in an action brought pursuant to § 58.1-3984 shall award interest at the
appropriate rate, notwithstanding the failure of the locality to conform its
ordinance to the requirements of this section.
		Notwithstanding any contrary provision of law, the local governing body shall
allow an automatic extension on real property taxes imposed upon a primary
residence and personal property taxes imposed upon a qualifying vehicle, as
defined in § 58.1-3523, owed by members of the armed services of the United
States deployed outside of the United States. Such extension shall end and the
taxes shall be due 90 days following the completion of such member&#8217;s
deployment. For purposes of this section, &#8220;the armed services of the
United States&#8221; includes active duty service with the regular Armed Forces
of the United States or the National Guard or other reserve component.
		No tax assessment or tax bill shall be deemed delinquent and subject to the
collection procedures prescribed herein during the pendency of any
administrative appeal under § 58.1-3980, so long as the appeal is filed within
90 days of the date of the assessment, and for 30 days after the date of the
final determination of the appeal, provided that nothing in this paragraph shall
be construed to preclude the assessment or refund, following the final
determination of such appeal, of such interest as otherwise may be provided by
general law as to that portion of a tax bill that has remained unpaid or was
overpaid during the pendency of such appeal and is determined in such appeal to
be properly due and owing.
		Interest may commence not earlier than the first day following the day such
taxes are due by ordinance to be filed, at a rate not to exceed 10 percent per
year. The governing body may impose interest at a rate not to exceed the rate of
interest established pursuant to § 6621 of the Internal Revenue Code of 1954,
as amended, or 10 percent annually, whichever is greater, for the second and
subsequent years of delinquency. No penalty for failure to pay a tax or
installment shall exceed (i) 10 percent of the tax past due on such property;
(ii) in the case of delinquent tangible personal property tax more than 30 days
past due on property classified pursuant to subdivision A 15, 16, or 20 of §
58.1-3506, which remains unpaid after 10 days&#8217; written notice sent by
United States mail to the taxpayer of the intention to impose a penalty pursuant
hereto, the penalty shall not exceed an amount equal to the difference between
the tax due and owing with respect to such property and the tax that would have
been due and owing if the property in question had been classified as general
tangible personal property pursuant to § 58.1-3503; (iii) in the case of
delinquent tangible personal property tax more than 30 days past due, 25 percent
of the tax past due on such tangible personal property; (iv) in the case of
delinquent remittance of excise taxes on meals, lodging, or admissions collected
from consumers, 10 percent for the first month the taxes are past due, and five
percent for each month thereafter, up to a maximum of 25 percent of the taxes
collected but not remitted; or (v) $10, whichever is greater, provided, however,
that the penalty shall in no case exceed the amount of the tax assessable. No
penalty for failure to file a return shall be greater than 10 percent of the tax
assessable on such return or $10, whichever is greater, provided, however, that
the penalty shall in no case exceed the amount of the tax assessable. The
assessment of such penalty shall not be deemed a defense to any criminal
prosecution for failing to make return of taxable property as may be required by
law or ordinance. Penalty for failure to file an application or return may be
assessed on the day after such return or application is due; penalty for failure
to pay any tax may be assessed on the day after the first installment is due.
Any such penalty when so assessed shall become a part of the tax. Any bill
issued by the treasurer imposing a penalty or interest for taxes owed on
machinery and tools or tangible personal property owned by a business shall
separately state the total amount of tax owed, the amount of any interest
assessed, and the amount of the penalty imposed.
		No penalty for failure to pay any tax shall be imposed for any assessment made
later than two weeks prior to the day on which the taxes are due, if such
assessment is made thereafter through the fault of a local official, and if such
assessment is paid within two weeks after the notice thereof is mailed.
		In the event a transfer of real property ownership occurs after January 1 of a
tax year and a real estate tax bill has been mailed pursuant to §§ 58.1-3281
and 58.1-3912, the treasurer or other appropriate local official designated by
ordinance of the local governing body in jurisdictions not having a treasurer,
upon ascertaining that a property transfer has occurred, may invalidate a bill
sent to the prior owner and reissue the bill to the new owner as permitted by §
58.1-3912, and no penalty for failure to pay any tax for any such assessment
shall be imposed if the tax is paid within two weeks after the notice thereof is
mailed.
		Penalty and interest for failure to file a return or to pay a tax shall not be
imposed if such failure was not the fault of the taxpayer, or was the fault of
the commissioner of the revenue, the treasurer, or the United States Postal
Service when no postmark is properly affixed or if the postmark affixed by the
United States Postal Service is illegible or bears no date, and the return or
payment is received through the United States mail no later than five days
following the time of the close of business on the last day on which such return
may be filed or such tax may be paid without penalty or interest, as the case
may be. No such penalty and interest shall be imposed if a taxpayer provides
evidence that a tax return filing or a tax payment was timely by producing a
United States Postal Service Certificate of Mailing, or other proof of mailing,
showing such return was filed or such payment was made before the close of
business on the last day such return may be filed or such tax may be paid
without penalty or interest. The failure to file a return or to pay a tax due to
the death of the taxpayer or 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&#8217;s part, provided the return is filed or the
taxes are paid within 30 days of the due date; however, if there is a committee,
legal guardian, conservator or other fiduciary handling the individual&#8217;s
affairs, such return shall be filed or such taxes paid within 120 days after the
fiduciary qualifies or begins to act on behalf of the taxpayer. Interest on such
taxes shall accrue until paid in full. Any such fiduciary shall, on behalf of
the taxpayer, by the due date, file any required returns and pay any taxes that
come due after the 120-day period. The treasurer shall make determinations of
fault relating exclusively to failure to pay a tax, and the commissioner of the
revenue shall make determinations of fault relating exclusively to failure to
file a return. In jurisdictions not having a treasurer or commissioner of the
revenue, the governing body may delegate to the appropriate local tax officials
the responsibility to make the determination of fault.
		The governing body may further provide by resolution for reasonable extensions
of time, not to exceed 90 days, for the payment of real estate and personal
property taxes and for filing returns on tangible personal property, machinery
and tools, and merchants&#8217; capital, and the business, professional, and
occupational license tax, whenever good cause exists. The official granting such
extension shall keep a record of every such extension. If any taxpayer who has
been granted an extension of time for filing his return fails to file his return
within the extended time, his case shall be treated the same as if no extension
had been granted.
		The governing body may further provide by resolution that the treasurer or
other officer responsible for the collection of taxes may enter into an
agreement with any taxpayer who has been assessed with omitted taxes, including
penalties and interest with respect to such taxes, pursuant to § 58.1-3903 or
58.1-3904, for the payment of the taxes, penalties, and interest so assessed
over a period that is reasonable under the circumstances but that in no event
shall exceed 72 months. Any agreement under this paragraph shall provide for the
payment of current tax obligations as they come due, which payments shall be
credited to current tax obligations notwithstanding the provisions of §
58.1-3913 and shall be secured by the lien of the locality pursuant to §
58.1-3340.
		This section shall be the sole authority for local ordinances setting due
dates of local taxes and penalty and interest thereon and shall supersede the
provisions of any charter or special act.

HISTORY: Code 1950, § 58-847; 1954, c. 253; 1968, c. 291; 1971, Ex. Sess., c.
193; 1973, cc. 321, 325; 1974, c. 309; 1976, cc. 518, 527, 675; 1978, c. 395;
1980, c. 663; 1982, cc. 87, 618; 1984, cc. 181, 675; 1986, cc. 206, 353; 1987,
cc. 570, 582, 595; 1989, c. 238; 1990, cc. 667, 696, 702; 1991, cc. 471, 484,
493, 509; 1993, c. 91; 1994, c. 932; 1995, c. 395; 1997, cc. 481, 496, 911;
1998, cc. 375, 542, 649; 1999, c. 631; 2000, cc. 433, 507; 2005, c. 501; 2006,
cc. 200, 231, 459; 2007, cc. 88, 609; 2008, c. 591; 2023, cc. 14, 163; 2024, c.
488.