CHAPTER 508

An Act to amend and reenact §§ 58-425, 58-426, 58-427, 58-434, 58-435,
58-440 and 58-441 of the Code of Virginia, relating to intangible per-
sonal property taxes.

[H 426]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-425, 58-426, 58-427, 58-434, 58-435, 58-440 and 58-441 of
the Code of Virginia be amended and reenacted as follows:

§ 58-425. Extension of time for filing returns——The Department of
Taxation may grant a reasonable extension of time for filing intangible
returns whenever in its judgment good cause exists and shall keep a record
of every such extension. Except in case of a taxpayer who is abroad no
such extension shall be granted for more than six months. Whenever the
time for filing a return be extended, interest at the rate of one-half of
one per cent per month or fraction thereof from the time the return was
originally required to be filed to the time of payment shall be charged and
collected. If any taxpayer, who has been granted an extension of time for
filing his return, fails to file his return within the extended time and to
pay the full amount of the tax as shown on the face of the return at the
time of filing, and the accrued interest, his case shall be treated the same
as if no extension had been granted.

58-426. Blank forms of returns to be furnished by Department of
Taxation.—Blank forms of returns for intangible personal property shall
be supplied by the Department of Taxation to the commissioners of the
revenue, who shall mail or deliver them to the taxpayers not later than
January fifteenth of each year. *

§ 58-427. Commissioner of revenue to obtain returns; audit and
assessment.—Every commissioner of the revenue shall obtain a return of
intangible personal property from every taxpayer within his jurisdiction
who is liable to file such a return with him; but this duty of the commis-
sioner of the revenue to obtain such return shall in no manner diminish
the obligation of the taxpayer to file a return without being called upon to
do so by the commissioner of the revenue or any other officer. Each com-
missioner of the revenue shall audit returns of taxpayers as soon as *
practicable after they are made to him and shall assess the amount of
taxes, or the amount of additional taxes, as the case may be, which appears
to be due; but such auditing shall not be done in such manner or at such
time in any case as will result in any delay on the part of the commissioner
of the revenue in complying with §§ 58-440 and 58-441.

§ 58-484. Forwarding to and audit of returns by Department.—As
soon as the returns of intangible personal property have been received by
the commissioner of the revenue and entered upon the assessment * sheets
or forms, the commissioner of the revenue shall forward such returns to
the Department of Taxation; provided, however, that the Department of
Taxation may authorize the commissioner of the revenue to retain such
returns for such length of time as may be necessary to enable him to
review them under § 58-427 and to use them in ascertaining delinquents.
As soon as practicable after each such return is received by the Depart-
ment it shall examine and audit it.

§ 58-485. Assessment and payment of deficiency; penalties; appli-
cation for correction.—If the amount of tax computed by the Department
shall be greater than the amount theretofore assessed, the excess shall be
assessed by the Department and a bill for the same shall be mailed to the
taxpayer and advice thereof given to the Comptroller. The taxpayer shall
pay such additional tax to the State Treasurer within * thirty days after
the amount of the tax as computed shall be mailed by the Department
aforesaid. In such case, if the return was made in good faith and the
understatement of the amount in the return was not due to any fault of
the taxpayer, there shall be no * penalty * on the additional tax, because
of such understatement, but interest shall be added to the amount of the
deficiency at the rate of one-half of one per centum per month or fraction
thereof from the time the said return was required by law to be filed until
paid. * If the understatement is * false or fraudulent with intent to evade
the tax a penalty of one hundred per centum shall be added * together
with interest on the tax * at the rate of one-half of one per centum per
month or fraction thereof from the time the said return was required by
law to be filed until paid. * Nothing contained in this section shall prevent
the taxpayer from applying to the circuit court of the county or the cor-
poration or hustings court of the city wherein he resides for a correction
of the assessment made by the Department of Taxation with right of
appeal in the manner now provided by law.

§ 58-440. * Intangible personal property assessment sheets or forms.
—The Department of Taxation shall prescribe and furnish assessment
sheets or forms for the use of every commissioner of the revenue in mak-
ing assessments of intangible personal property. These assessment sheets
or forms shall be made out in as many copies as may be prescribed by the
Department of Taxation. The original and, if the Department of Taxation
so prescribes, one copy of each such sheet or form shall be delivered to
the treasurer of the county or city; one copy shall be sent the Department
of Taxation, and one copy shall be retained by the commissioner of the
revenue. The commissioner of the revenue shall make out these assess-
ment sheets or forms daily as and when returns are received, or in the
case of additional assessments, as and when made, and shall continue so
to make out such sheets or forms daily until all returns so received by
him have been assessed on such sheets or forms; and the commissioner of
the revenue shall each day deliver the original and, if the Department of
Taxation so prescribes, one copy of each such sheet or form so made out
that day to the treasurer of the county or city. Within ten days after the
close of each month the commissioner of the revenue shall transmit to the
Department of Taxation its copy of the assessment sheets or forms show-
ing assessments made throughout such month. Intangible personal prop-
erty shall not be entered on the personal property book.

§ 58-441. When, * where and how taxes on intangible personal prop-
erty payable * and collectible-—* Each taxpayer liable for intangible per-
sonal property tax shall pay the same to the treasurer of the county or
city with whose commissioner of the revenue the taxpayer files his return
at the time fixed by law for filing the return. The full amount of the tax
payable as shown on the face of the return shall be so paid.

If any payment is not made in full when due, there shall be added to
the entire tax or to any unpaid balance of the tax, as the case may be, a
penalty of five per cent of the amount thereof, and the entire tax or any
unpaid balance of the tax, as the case may be, together with such penalty,
will immediately become collectible, and interest upon such tax or any
unpaid balance of the tax, as the case may be, and on the accrued penalty,
shall be added at the rate of one-half of one per cent per month or fraction
thereof from one month after the tax or any unpaid balance of the taz,
as the case may be, was originally due until paid; but in the case of an
additional tax assessed by the commissioner of the revenue under the
provisions of § 58-427, if the return was made in good faith and the
understatement of the amount in the return was not due to any fault of
the taxpayer, there shall be no penalty on the additional tax because of
such understatement, but interest shall be added to the amount of the
deficiency at the rate of one-half of one per cent per month or fraction
unereor from the time the said return was required by law to be filed until
par

In every case the taxpayer may make payment to the treasurer of the
county or city by attaching to his return when he files tt with the com-
missioner of the revenue a check or money order for the proper amount
made payable to the order of “Treasurer of | the County Off i...escccssceseecen eevee
or “Treasurer Of the City Of ...ccccccccccccccccceeecee as the case may be; and the
commissioner of the revenue shall transmit “all such checks and money
orders to the treasurer at the time he delivers to the treasurer the assess-
ment sheets or forms showing the assessments, or if memorandum assess-
ments are made, at the time such memorandum assessments are certified
to the treasurer. In those counties in which a director of finance performs
the duties of a county treasurer, checks or money orders shall be made
payable to the order of “Director of Finance of the County of .........---
If any check be not paid by the bank on which it is drawn, the taxpayer
by whom such check was tendered shall remain liable for the payment of
the tax and for all legal penalties and interest the same as if such check
had not been tendered.

If the taxpayer on filing his return desires to pay im currency or coin,
the commissioner of the revenue with whom the return is filed shall forth-
with prepare a memorandum assessment on a form to be prescribed and
furnished by the Department of Taxation and a copy of such memoran-
dum assessment shall be immediately certified to the treasurer who shall
receive the currency or coin from the taxpayer and give his receipt there-
for. Memorandum assessments shall be subsequently entered by the com-
missioner of the revenue on the prescribed assessment sheets or forms;
and the Department of Taxation may prescribe and furnish forms for
making memorandum assessments in all additional cases in which, in the
opinion of the Department, the same may be necessary to facilitate the
assessment and collection of intangible personal property taxes.

Each county and city treasurer shall proceed promptly to collect all
intangible personal property taxes for the tax year that have been
assessed by the commissioner of the revenue and remain unpaid after the
time fixed by law for payment and shall continue his efforts so to collect
until the close of the then current calendar year. The collection of such
taxes shall be enforced by legal process to the extent collection cannot be
accomplished otherwise, and all remedies available to the treasurer for
the collection of other taxes shall apply to the collection of intangible per-
sonal property taxes. Forms of necessary tax bills and receipts shall be
prescribed by the Department of Taxation.

Within thirty-one days after the close of such calendar year the
treasurer shall transmit to the Department of Taxation in such form as
the Department of Taxation may prescribe such information and data as
may be required by such Department with respect to all assessments made
by the commissioner of the revenue during such calendar year as the
treasurer was unable to collect. The Department of Taxation, upon receiv-
ing and examining the same, shall certify to the Comptroller the necessary
information to enable the Comptroller to give such treasurer proper credit
on the Comptroller’s books for all unpaid items, and such treasurer shall
mot receive any of such taxes after he has transmitted such information
and data to the Department of Taxation, but the same shall be paid
directly into the State treasury. § 58-978 shall not apply with respect to
the intangible personal property taxes covered by this paragraph.

The Department of Taxation shall have power to issue warrants for
the collection of such taxes in the same manner and with the same effect
as in the case of warrants issued for the collection of taxes assessed by
such Department; and all provisions of law applicable to such warrants
shall be applicable to the warrants issued for the collection of taxes under
this section. The Department of Taxation shall also have power to collect
the taxes aforesaid by other legal process.

2. This act shall apply to the assessment and collection of intangible per-
sonal property taxes for the tax year nineteen hundred and sixty-one and
for every tax year thereafter until otherwise provided by law.