An Act to amend and reenact § 46.1-299, as amended, of the Code of Virginia, relating to devices signalling intention to turn or stop and rules therefor.
Volume 1968 Law 99
Volume | 1962 |
---|---|
Law Number | 612 |
Subjects |
Law Body
CHAPTER 612
An Act to amend and reenact §§ 58-103, 58-104, and 58-113, as amended,
of the Code of Virginia, relating to income taxes; and to amend the
Code of Virginia by adding thereto in Title 58, Chapter 4, a new
article numbered 8 and new sections numbered 58-151.1 through
58-151.85, so as to provide for the withholding of income taxes from
wages as defined and for declarations of estimated income tax; to
provide for the collection of the revenue and for the administration
and enforcement of the new article; to prescribe penalties, and to
make an appropriation.
[H 728]
Approved March 31, 1962
Be it enacted by the General Assembly of Virginia:
1. That §§ 58-103, 58-104, and 58-113 as amended, of the Code of
Virginia, be amended and reenacted, and that the Code of Virginia be
amended by adding thereto in Title 58, Chapter 4, a new article numbered
8 and new sections numbered 58-151.1 through 58-151.35, the amended
and reenacted sections and the new article and new sections being as
ollows:
§ 58-103. Credit for taxes paid other states by resident individuals
of this State—Whenever a resident individual of this State has become
liable to income tax to another state, as a nonresident of such state, upon
his net income, or any part thereof, for the taxable year, derived from
sources without this State and subject to taxation under this chapter, the
amount of income tax payable by him under this chapter shall be credited
on his return with the income tax so paid by him to such other state upon
his producing to the proper assessing officer satisfactory evidence of the
facts and of such payment. The credit provided for by this section shall not
be granted to a taxpayer when the laws of another state, under which the
income in question is subject to tax assessment, provide for a credit to
oe neve substantially similar to that granted by § 58-104 of this
chapter.
§ 58-104. Credit for taxes paid other states by nonresident in-
dividuals. * .—Whenever a nonresident individual of this State has be-
come liable to income tax to the state where he resides upon his net income
for the taxable year, derived from sources within this State and subject to
taxation under this chapter, the amount of income tax payable by him under
this chapter shall be credited with such proportion of the tax so payable
by him to the state where he resides as his income subject to taxation under
this chapter bears to his entire income upon which the tax so payable to
such other state was imposed; provided, that such credit shall be allowed
only if the laws of such state: (1) Grant a substantially similar credit to
residents of this State subject to income tax under such laws or (2) impose
a tax upon the personal incomes of its residents derived from sources in
this State and exempt from taxation the personal incomes of residents of
this State. No credit shall be allowed against the amount of the tax on any
income taxable under this chapter which is exempt from taxation under
the laws of such other state.
This section, as hereby amended, shall apply with respect to taxable
years beginning after December 31, 1962.
§ 58-118. Assessment and payment of deficiency; fraud; penalties.
—If the amount of tax computed by the Department shall be greater than
the amount theretofore assessed, the excess shall be assessed by the De-
partment aforesaid and a bill for the same shall be mailed to the taxpayer
* . The taxpayer shall pay such additional tax to the * Department within
thirty days after the amount of the tax as computed shall be mailed by the
Department. 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 cent 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 in-
terest on the tax at the rate of one-half of one per cent per month or frac-
tion 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 corporation 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
provided by law.
This section, as hereby amended, shall be in force on January 1, 1968
and thereafter until otherwise provided by law.
Article 8.
Withholding Income Tax from Wages and Declarations
of Estimated Income Tax.
§ 58-151.1. Definitions.—For the purposes of this article:
(1) The word “wages” means all remuneration (other than fees paid
to a public official) for services performed by an employee for his em-
ployer, including the cash value of all remuneration paid in any medium
poet than cash; except that such term shall not include remuneration
paid:
(A) for agricultural labor where such remuneration ts paid to work-
ers employed on the farm for services rendered on the farm in the produc-
tion, harvesting, and transportation of agricultural products to market
for the farmer-employer; or
(B) for domestic service in a private home, local college club, or
local chapter of a college fraternity or sorority; or
(C) for service not in the course of the emnployer’s trade or business
performed in any calendar quarter by an employee, unless the cash re-
muneration paid for such service is fifty dollars or more and such service
1s performed by an individual who is regularly employed by such employer
to perform such service. For purposes of this paragraph, an individual
shall be deemed to be regularly employed by an employer during a calendar
quarter only if:
(I) on each of some 24 days during such quarter such individual per-
forms for such employer for some portion of the day service not in the
course of the employer’s trade or business; or
(II) such individual was regularly employed (as determined under
sub-paragraph (I) above) by such employer in the performance of such
service during the preceding calendar quarter; or
(D) for services performed by a duly ordained, commissioned, or
licensed minister of a church in the exercise of his ministry or by a mem-
ber of a religious order in the exercise of duties required by such order; or
(E') for services not in the course of the employer’s trade or business,
to the extent paid in any medium other than cash; or
(F) to, or on behalf of, an employee or his beneficiary—
(I) from or to a trust described in section 401(a) of the Internal
Revenue Code of the United States of 1954 which is exempt from tax under
section 501(a) of the Internal Revenue Code at the time of such payment
unless such payment is made to an employee of the trust as remuneration
for services rendered as such employee and not as a beneficiary of the trust;
or
(IT) under or to an annuity plan which, at the tume of such payment,
meets the requirements of section 401(a) (3), (4), (5), and (6) of the
Internal Revenue Code.
(2) The term “payroll period” means a period for which a payment of
wages is ordinarily made to the employee by his employer, and the term
“miscellaneous payroll period” means a payroll period other than a daly,
weekly, bi-weekly, semimonthly, monthly, quarterly, semiannual, or annual
payroll period.
(3) The word “employee” includes an individual, whether a resident
or a nonresident of this State, who performs or performed any service in
this State for wages, or a resident of this State who performs or per-
formed any service outside this State for wages. The word “employee”
also includes an officer, employee, or elected official of the United States,
this State, or any other State or any territory, or any political subdivision
thereof, or the District of Columbia, or any agency or instrumentality of
any one or more of the foregoing. The word “employee” also includes an
officer of a corporation.
(4) The word “employer” means this State, or any political subdivr-
sion thereof, the United States, or any agency or instrumentality of any
one or more of the foregoing, or the person, whether a resident or a non-
resident of this State, for whom an individual performs or performed any
service as an employee, except that:
(A) if the person, governmental unit, or agency thereof, for whom
the individual performs or performed the service does not have control of
the payment of the wages for such services, the term “employer” (except
for purposes of subsection (1) of this section) means the person having
control of the payment of such wages, and
(B) in the case of a person paying wages on behalf of a nonresident
person not engaged in trade or business within this State or on behalf of
any governmental unit or agency thereof not located within this State,
the term “employer” (except for purposes of subsection (1) of this section)
means such person.
(5) The word “person” means and includes an individual, a fiduciary,
a partnership, an association, a joint enterprise, and a corporation. “Per-
son” also includes an officer or employee of a corporation, or a member
or employee of a partnership, an association, or joint enterprise, who as
such officer, employee, or member is under any duty to perform the
required act.
(6) The word “individual” means a natural person.
(7) The word “Commissioner” means the State Tax Commissioner.
(8) The words “commissioner of the revenue” mean the commissioner
of the revenue of a county or city, or, in a county not having a commis-
sioner of the revenue, the officer of the county who performs the duties
of a county commissioner of the revenue; and the word “treasurer” means
the treasurer of a county or city, or, in a county not having a treasurer,
the officer of the county who performs the duties of a county treasurer.
§ 58-151.2. Requirement of withholding.—(a) Every employer mak-
ing payment of wages on or after January first, nineteen hundred and
sixty-three, shall deduct and withhold with respect to the wages of each
employee for each payroll period an amount determined as follows:
Such amount which, uf an equal amount was collected for each similar
payroll period with respect to a similar amount of wages for each payroll
period during an entire calendar year, would aggregate or approximate
the income tax liability of such employee under this chapter after making
allowance for the personal exemptions to which such employee would be
entitled on the basis of his status during such payroll period and after
making allowance for withholding purposes for a standard deduction from
wages in accordance with § 58-81, and without making allowance for any
other deductions. In determining the amount to be deducted and withheld
under this article, the wages may, at the election of the employer, be com-
puted to the nearest dollar.
§ 58-151.8. Withholding tables—The amount of tax to be withheld
for each individual shall be based upon tables to be prepared and dis-
tributed by the Commissioner. The tables shall be computed for the several
permissible withholding periods and shall take account of exemptions
allowed under this chapter and the standard deduction referred to in the
next preceding section; and the amounts computed for withholding shall
be such that the amount withheld for any individual during his taxable
year shall approximate in the aggregate as closely as practicable the tax
which is levied and imposed under this chapter for that taxable year, upon
his salary, wages or compensation for personal services of any kind for
the employer.
§ 58-151.4. Other methods of withholding.—The Commissioner may
grant permission to employers who do not desire to use the withholding
tax tables provided in accordance with the next preceding section, to de-
termine the amount of tax to be withheld by use of a method of with-
holding other than withholding tax tables, provided such method will with-
hold from each employee substantially the same amount of tax as would
be withheld by use of the withholding tax tables. Employers who desire to
determine the amount of tax to be withheld by a method other than by use
of the withholding tax tables shall obtain permission from the Commis-
sioner before the beginning of a payroll period for which the employer
desires to withhold the tax by such other method. Applications to use such
other method must be accompanied by evidence establishing the need for
the use of such method.
§ 58-151.5. Miscellaneous payroll period applicable to withholding
in payment of certain wages; withholding on basis of average wages.—
(a) If wages are paid with respect to a period which is not a payroll
period, the amount to be deducted and withheld shall be that applicable
in the case of a miscellaneous payroll period containing a number of days,
including Sundays and holidays, equal to the number of days in the period
with respect to which such wages are paid.
(b) In any case in which wages are paid by an employer without
regard to any payroll period or other period, the amount to be deducted
and withheld shall be that applicable in the case of a miscellaneous pay-
roll period containing a number of days equal to the number of days,
including Sundays and holidays, which have elapsed since the date of the
last payment of such wages by such employer during the calendar year,
or the date of commencement of employment with such employer during
such year, or January first of such year, whichever is the later.
(c) Withholding on basis of average wages.—The Commissioner may,
by regulations, authorize employers:
(1) to estimate the wages which will be paid to any employee in any
quarter of the calendar year;
(2) to determine the amount to be deducted and withheld upon each
payment of wages to such employee during such quarter as if the appro-
priate average of the wages so estimated constituted the actual wages
paid; and
(8) to deduct and withhold upon any payment of wages to such em-
ployee during such quarter such amount as may be necessary to adjust the
amount actually deducted and withheld upon the wages of such employee
during such quarter to the amount that would be required to be deducted
and withheld during such quarter without regard to this subsection.
§ 58-151.6. Overlapping pay periods, and payment by agent or fi-
duciary.—_If a payment of wages is made to an employee by an employer:
(1) with respect to a payroll period or other period, any part of which
is included in a payroll period or other period with respect to which wages
are also paid to such employee by such employer, or
(2) without regard to any payroll period or other period, but on or
prior to the expiration of a payroll period or other period with respect to
which wages are also paid to such employee by such employer, or
(3) with respect to a period beginning in one and ending in another
calendar year, or
(4) through an agent, fiduciary, or other person who also has the
control, receipt, custody, or disposal of, or pays, the wages payable by
another employer to such employee, the manner of withholding and the
amount to be deducted and withheld under this article shall be determined
im accordance with regulations prescribed by the Commissioner under
which the withholding exemption allowed to the employee in any calendar
year shall approximate the withholding exemption allowable with respect
toanannual payroll period. ;
§ 58-151.7. Additional withholding.—The Commissioner 1s author-
ized to provide by regulations, under such conditions and to such extent
as he deems proper, for withholding in addition to that otherwise required
under this article in cases in which the employer and the employee agree
to such additional withholding. Such additional withholding shall for all
purposes be considered tax required to be deducted and withheld under
this article.
§ 58-151.8. If employer fails to withhold and thereafter tax is paid
by recipient of wages.—If the employer, in violation of the provisions of
this article, fails to deduct and withhold the tax under this article, and
thereafter the tax against which such tax may be credited 1s paid, the tax
so required to be deducted and withheld shall not be collected from the
employer; but this section shall in no case relieve the employer from
liability for any penalties or additions to the tax otherwise applicable in
respect of such failure to deduct and withhold.
§ 58-151.9. Included and excluded wages.—If the remuneration paid
by an employer to an employee for services performed during one-half or
more of any payroll period of not more than thirty-one consecutive days
constitutes wages, all the remuneration paid by such employer to such
employee for such period shall be deemed to be wages; but if the remunera-
tion paid by an employer to an employee for services performed during
more than one-half of any such payroll period does not constitute wages,
then none of the remuneration paid by such employer to such employee for
such period shall be deemed to be wages.
§ 58-151.10. Employer liable for payment of tax required to be with-
held.—The employer shall be liable for the payment to the Commissioner
of the amounts required to be deducted and withheld under this article
and an employer who has withheld and paid such amounts to the Com-
missioner shall not otherwise be liable to any person for the amount of
any such payment.
§ 58-151.11. Withholding exemption certificates.—(a) An employee
receiving wages shall be entitled to the exemptions for which such employee
qualifies under the provisions of § 58-98.
b) Every employee shall, on or before January first, nineteen hun-
dred sixty-three, or at the time of commencing employment, whichever is
later, furnish his employer with a signed withholding exemption certificate
relating to the withholding exemptions which he claims, which in no event
shall exceed the sum of exemptions to which he is entitled.
_ (c) Withholding exemption certificates shall take effect as of the be-
ginning of the first payroll period ending, or the first payment of wages
made without regard to a payroll period, on or after the date on which such
certificate is so furnished, provided that certificates furnished before Janu-
ary first, nineteen hundred sixty-three, shall be considered as furnished on
that date.
(d) A withholding exemption certificate which takes effect under
this section shall continue in effect with respect to the employer until
another such certificate takes effect under this section. If a withholding
exemption certificate is furnished to take the place of an existing certtfi-
cate, the employer, at his option, may continue the old certificate in force
with respect to all wages paid on or before the first status determination
date, January first or July first, which occurs at least thirty days after
the date on which such new certificate is furnished.
(e) If, on any day during the calendar year, the sum of withholding
exemptions to which the employee will be, or may reasonably be expected
to be, entitled at the beginning of his next taxable year is different from
the sum of exemptions to which the employee is entitled on such day, the
employee shall in such cases and at such times as the Commissioner may
prescribe, furnish the employer with a withholding exemption certificate
relating to the exemptions which he claims with respect to such next
taxable year, which shall in no event exceed the sum of exemptions to
which he will be, or may reasonably be expected to be, so entitled. Ex-
emption certificates furnished pursuant to this subsection shall not take
effect with respect to any payment of wages made in the calendar year
in which the certificate 1s furnished.
(f) If, on any day during the calendar year, the sum of withholding
exemptions to which the employee is entitled is less than the sum of
withholding exemptions claimed by the employee on the withholding
exemption certificate then in effect with respect to him, the employee shall,
within ten days thereafter, furnish the employer with a new withholding
exemption certificate relating to the withholding exemptions which the
employee then claims, which shall in no event exceed the sum of ex-
emptions to which he is entitled on such day. If, on any day during the
calendar year, the sum of withholding exemptions to which the employee
as entitled is greater than the sum of withholding exemptions claimed, the
employee may furnish the employer with a new withholding exemption
certificate relating to the withholding exemptions which the employee then
claims, which shall in no event exceed the sum of exemptions to which he
as entitled on such day.
(g) Withholding exemption certificates shall be in such form and
contain such information as the Commissioner may prescribe.
§ 58-151.12. Fraudulent withholding exemption certificate or failure
to supply information.—Any individual required to supply information
to his employer under this article who willfully supplies false or fraudulent
information, or who willfully fails to supply information thereunder
which would require an increase in the tax to be withheld under this
article, shall be guilty of a misdemeanor.
§ 58-151.18. Employer’s returns and payments of withheld taxes.—
(a) Every employer required to deduct and withhold from an employee’s
wages under this article shall, for the quarterly period beginning January
first, nineteen hundred sixty-three, and for each quarterly period there-
after, on or before the last day of the month following the close of each
quarterly period make return and pay over to the Commissioner the
amounts required to be withheld under this article. Such returns shall be
in such form and contain such information as the Commissioner may
prescribe.
(b) If the Commissioner, in any case, has reason to believe that the
collection of moneys, required by this article to be withheld by the
employer, 1s in yeopardy, he may require the employer to make such return
and pay to the Commissioner such amounts required to be withheld at
any time said Commissioner may designate therefor subsequent to the time
when such amounts should have been deducted from wages and withheld.
(c) Every employer who fails to withhold or pay to the Commissioner
any sums required by this article to be withheld and paid shall be per-
sonally and individually liable therefor; and any sum or sums withheld
in accordance with the provisions of this article shall be deemed to be held
un trust for the Commonwealth. ;
(d) Any employer required under the provisions of this article to
deduct and withhold from wages and make quarterly returns and payment
of amounts withheld to the Commissioner, who fails to withhold such
amounts, or to make such returns, or who fails to remit amounts collected
to the Commissioner, or otherwise fails to remit to the Commissioner as
required by this article, shall be subject to a penalty equal to twenty-five
per cent of the amount that should have been properly withheld and paid
over to the Commissioner for each such failure. Such penalty shall be
assessed by the Commissioner and shall be collected by him in the same
manner as the collection of taxes may be enforced under this title. _
(e) Upon failure of any employer to pay over any amounts withheld
or required to be withheld by the employer under this article, the Commis-
sioner may make assessments and enforce the collection of such amounts,
wncluding penalties, by any legal process provided for the enforcement of
the collection of taxes under this title.
(f) Once an employer has become liable to a quarterly return of
withholding, he must continue to file a quarterly report, even though no
tax has been withheld, until such time as he notifies the Commissioner, in
writing, that he no longer has employees or that he is no longer liable for
such quarterly returns.
(g) The Commissioner may grant an employer a reasonable extension
of time for filing any return under this article whenever in his judgment
good cause exists. Whenever under the terms of such an extension the
payment of any amount or amounts of money to the Commissioner by the
employer is postponed for a longer period than fifteen days from the time
the same would be otherwise due and payable, such employer shall be
charged with interest on such amount or amounts at the rate of one-half
of one percent per month or fraction thereof from the time such amount
or amounts were originally due and payable to the date of payment under
the terms of the extension.
§ 58-151.14. Withholding tax statements for employees; employers
must file annual returns with Commissioner.—(a) Every person required
to deduct and withhold from an employee’s wages under this article, shall
furnish to each such employee in respect to the remuneration paid by such
person to such employee during the calendar year, on or before January
thirty-first of the succeeding year, or, if his employment is terminated
before the close of such calendar year, on the day on which the last pay-
ment of remuneration 1s made, a written statement in duplicate showing
the following: (1) the name of such person; (2) the name of the employee
and his social security account number; (8) the total amount of wages;
(4) the total amount deducted and withheld under this article by such
employer.
(b) The written statements required to be furnished pursuant to this
section in respect of any remuneration shall be furnished at such other
times, shall contain such other information, and shall be in such form as
the Commissioner may by regulations prescribe.
(c) Every employer shall file an annual return with the Commis-
sioner, setting forth such information as the Commissioner may require,
not later than January thirty-first of the calendar year succeeding the
calendar year in which wages were withheld from employees, and such
annual return shall be accompanied by an additional copy of each of the
written statements furnished each employee under subsections (a) and (b)
of this section.
(d) Compliance by an employer with subsection (c) of this section
shall be in lieu of filing wage information returns under §§ 58-90 and
58091 8 to employees whose wages were subject to withholding under this
article.
§ 58-151.15. Willful failure by employer to make return, to with-
hold tax, to pay it or to furnish employee with withholding statement, a
misdemeanor.—Willful failure by any employer to make any return re-
quired by this article to the Commissioner, or willful failure either to
withhold the required tax or to pay it to the Commissioner as specified,
or both, or willful failure by any employer to furnish an employee the
written statement required by § 58-151.14, shall be a misdemeanor.
§ 58-151.16. Refund to employer.—(a) Where there has been an
overpayment to the Commissioner by the employer under this article, the
Commissioner shall order refund or give credit to the employer only to
the extent that the amount of such overpayment was not deducted and
withheld from the employee’s wages under this article. Every such refund
shall be made out of the State treasury on the order of the Commissioner
upon the Comptroller.
(ob) Unless written application for refund or credit is received by the
Commissioner from the employer within two years from the date the over-
payment was made, no refund or credit shall be allowed.
(c) Any employer aggrieved by any action of the Commissioner under
this section may proceed in court under §§ 58-1130 through 58-1139 as
though the case involved an assessment of income taxes, except that the
limitation shall be two years from the date the alleged overpayment was
made, and except, further, that the time which shall elapse from the filing
of the written application with the Commissioner under subsection (b) to
the time when the Commissioner takes final action with respect to such ap-
plication shall be excluded from the computation of the period of two years.
§ 58-151.17. Withheld amounts credited to individual taxpayer.—
The amount deducted and withheld under this article during any calendar
year from the wages of any individual shall be allowed to the recipient of
the income as a credit against the tax imposed by this chapter for the tax-
able year beginning in such calendar year. If more than one taxable year
begins in a calendar year, such amount shall be allowed as a credit against
the tax for the last taxable year so beginning. As a prerequisite to obtain-
ing such credit the individual taxpayer must file with his income tax
return one copy of the withholding statement provided for by § 58-151.14.
§ 58-151.18. Nondeductibility of withheld taxes in computing tax-
able income.—The tax deducted and withheld under this article shall not
be allowed as a deduction either to the employer or to the recipient of the
income in computing taxable income under this chapter.
§ 58-151.19. Certain nonresidents; reciprocity with other States.—
If the income tax law of another state of the United States or of the Dis-
trict of Columbia results in its residents being allowed a credit under
8 58-104 sufficient to offset all taxes required by this article to be with-
held from the wages of an employee, the Commissioner may by regulation
relieve the employers of such employees from the withholding requirements
of this article with respect to such employees.
§ §8-151.20. Withholding State income taxes of Federal employees
by Federal agencies.—The State Tax Commissioner is hereby designated
as the proper official to make request for and to enter into agreements
with the Secretary of the Treasury of the United States to provide for
compliance with this article by the head of each department or agency of
the United States in withholding State income taxes from wages of Federal
employees and paying the same to this State. The Commissioner is hereby
authorized, empowered and directed to make request for and to enter into
such agreements.
§ 58-151.21. Declarations of estimated tax.—(a) Requirement of
declaration.—Every resident and nonresident individual shall, for taxable
year beginning on or after January first, nineteen hundred and sixty-three,
and for every taxable year thereafter, make a declaration of his estimated
tax for the taxable year, if his Virginia adjusted gross income, other than
from wages on which tax is withheld under this article, can reasonably be
expected to exceed four hundred dollars plus the sum of the Virginia per-
sonal exemptions to which he is entitled.
(b) Definition of estimated tax.—The term “estimated tax’’ means
the amount which an individual estimates to be his income tax under this
chapter for the taxable year, less the amount which he estimates to be the
sum of any credits allowable against the tax.
(c) Contents of declaration.—In the declaration required under sub-
section (a) the individual shall state: ;
(1) The amount which he estimates as the amount of tax for which
he will be liable under this chapter for the taxable year;
(2) The amount which he estimates will be withheld from wages, tf
any, for the taxable year under this article.
(3) The excess of the amount estimated under paragraph (1) of this
subsection over the amount estimated under paragraph (2) of this sub-
section shall be considered the estimated tax for the taxable year to be
paid by the individual as hereinafter provided.
(4) Such other information as may be required by the Commissioner.
(d) Joint declaration by husband and wife.—In the case of a hus-
band and wife, a single declaration under this section may be made by
them jointly, in which case the liability with respect to the estimated tax
shall be joint and several. No joint declaration may be made if either the
husband or the wife is a nonresident of this State unless both are required
by this chapter to file a return, if they are separated under a decree of
divorce or of separate maintenance, or if they have different taxable years.
If a joint declaration is made but a joint return is not made for the taxable
year, the estimated tax for such year may be treated as the estimated tax
of either the husband or the wife, or may be divided between them.
(e) Time for filing declaration.—A declaration of estimated tax of an
individual other than a farmer shall be filed on or before May first of the
taxable year, except that if the requirements of subsection (a) are first met:
(1) after April fifteenth and before June second of the taxable year,
the declaration shall be filed on or before June fifteenth, or
(2) after June first and before September second of the taxable year,
the declaration shall be filed on or before September fifteenth, or
(3) after September first of the taxable year, the declaration shall be
filed on or before January fifteenth of the succeeding year.
(f) Declaration of estimated tax by a farmer.—A declaration of esti-
mated tax of an individual having an estimated Virginia adjusted gross in-
come from farming (including oyster farming) for the taxable year which
is at least two-thirds of this total estimated Virginia adjusted gross income
for the taxable year may be filed at any time on or before January fifteenth
of the succeeding year, in lieu of the time otherwise prescribed.
_ (g) Declaration of estimated tax of forty dollars or less —A declara-
fion of estimated tax of an individual having a total estimated taz for the
faxable year of forty dollars or less may be filed at any time on or before
January fifteenth of the succeeding year under regulations of the Com-
missioner. )
(h) Amendments of declaration.—An individual may amend a declar-
ution under regulations of the Commissioner.
(1) Return as declaration or amendment.—If on or before February
fifteenth of the succeeding taxable year an individual files his return for
the taxable year for which the declaration is required, and pays therewith
the full amount of the tax shown to be due on the return:
(1) such return shall be considered as his declaration if no declaration
was required to be filed during the taxable year, but is otherwise required
to be filed on or before January fifteenth.
(2) such return shall be considered as the amendment permitted by
subsection (h) to be filed on or before January fifteenth if the tax shown
on the return is greater than the estimated tax shown in a declaration
previously made.
(j) Fiscal year.—This section shall apply to a taxable year other
than a calendar year by the substitution of the months of such fiscal year
for the corresponding months specified in this section.
(k) Short taxable year.—An individual having a taxable year of
less than twelve months shall make a declaration in accordance with regu-
lations of the Commissioner.
_ (l) Declaration for individual under a disability —The declaration of
estimated tax for an individual who is unable to make a declaration by
reason of any disability shall be made and filed by his guardian, committee,
fiduciary or other person charged with the care of his person or property
(other than a receiver in possession of only a part of his property), or by
his duly authorized agent.
§ 58-151.22. Payments of estimated tax—(a) General.—The esti-
alle tax with respect to which a declaration is required shall be paid as
ollows:
(1) If the declaration is filed on or before May first of the taxable
year, the estimated tax shall be paid in four equal installments. The first
installment shall be paid at the time of the filing of the declaration, and the
second, third and fourth installments shall be paid on the following June
fifteenth, September fifteenth, and January fifteenth, respectively.
(2) If the declaration is filed after May first and not after June fif-
teenth of the taxable year, and is not required to be filed on or before May
first of the taxable year, the estimated tax shall be paid in three equal
installments. The first installment shall be paid at the time of the filing
of the declaration, and the second and third installments shall be paid on
the following September fifteenth and January fifteenth, respectively.
(8) If the declaration is filed after June fifteenth and not after Sep-
tember fifteenth of the taxable year, and 1s not required to be filed on or
before June fifteenth of the taxable year, the estimated tax shall be paid in
two equal installments. The first installment shall be paid at the time of the
filing of the declaration, and the second shall be paid on the following
January fifteenth.
(4) If the declaration is filed after September fifteenth of the taxable
year, and is not required to be filed on or before September fifteenth of the
taxable year, the estimated tax shall be paid in full at the time of the
filing of the declaration.
(5) If the declaration is filed after the time prescribed therefor,
or after the expiration of any extension of time therefor, paragraphs (2),
(3), and (4) of this subsection shall not apply, and there shall be paid
at the time of such filing all installments of estumated tax payable at or
before such time, and the remaining installments shall be paid at the times
at which, and in the amounts in which, they would have been payable if
the declaration had been filed when due.
b) Farmers.—If an individual referred to in subsection (f) of
§ 58-151.21 (relating to income from farming) makes a declaration of
estimated tax after September fifteenth of the taxable year and on or before
the following January fifteenth, the estimated tax shall be paid in full
at the time of the filing of the declaration.
(c) Amendments of declaration.—If any amendment of a declaration
is filed, the remaining installments, if any, shall be ratably increased or
decreased (as the case may be) to reflect any increase or decrease in the
estimated tax by reason of such amendment, and if any amendment 18
made after September fifteenth of the taxable year, any increase in the
estimated tax by reason thereof shall be paid at the time of making such
amendment.
(d) Application to short taxable year.—This section shall apply
to a taxable year of less than twelve months in accordance with regulations
of the Commissioner.
(e) Fiscal year.—This section shall apply to a taxable year other than
a calendar year by the substitution of the months of such fiscal year for
the corresponding months specified in this section.
(f) Installments or entire estimated tax paid in advance.—An in-
dividual may elect to pay any installment of his estimated tax prior to the
date prescribed for its payment. An individual may also elect to file a
declaration of estimated tax in the closing days of a calendar year for his
taxable year about to begin, and may pay in full the amount of hts
estimated tax for such taxable year at the time he files the declaration.
(g) Payment is on account of tax for taxable year.—Payment of the
estimated tax, or any installment thereof, shall be considered payment on
account of the tax for the taxable year.
(h) Extensions of time.-—The Commissioner may grant a reasonable
extension of time for payment of estimated tax (or any installment), or for
filing any declaration pursuant to this article, on condition that the taz-
payer shall pay interest on the amount involved at the rate of one-half of
one percent per month or fraction thereof from the time the payment was
due until the time of payment. Except for a taxpayer who is outside the
United States, no such extension shall exceed six months. ;
§ 58-151.28. Failure by individual to pay estimated tax.—(a) Addt-
tions to the tax.—In the case of any underpayment of estimated tax by
an individual, except as provided in subsection (d), there shall be added
to the tax under this chapter for the taxable year an amount determined
at the rate of six percent per annum upon the amount of the underpayment
(determined under subsection (b)), for the period of the underpayment
(determined under subsection (c)).
(6) Amount of underpayment.—For purposes of subsection (a), the
amount of the underpayment shall be the excess of:
(1) The amount of the installment which would be required to be
paid if the estimated tax were equal to seventy percent (sixty-six and two-
thirds percent in the case of individual referred to in § 58-151.21 (f), re-
lating to income from farming) of the tax shown on the return for the
taxable year, or if no return was filed, seventy percent (sixty-six and two-
thirds percent in the case of individuals referred to in § 58-151.21 (f), re-
lating to income from farming) of the tax for such year, over
(2) The amount, if any, of the installment paid on or before the last
date prescribed for such payment.
(c) Period of underpayment.—The period of the underpayment shall
run from the date the installment was required to be paid to whichever of
the following dates is the earlier:
(1) The first day of the fifth month following the close of the taxable
year, if a calendar year, or the fifteenth day of the fourth month following
the close of the taxable year, if a fiscal year.
(2) With respect to any portion of the underpayment, the date on
which such portion is paid. For purposes of this paragraph, a payment of
estimated tax on any installment date shall be considered a payment of any
previous underpayment only to the extent such payment exceeds the amount
of the imstallment determined under subsection (b) (1) for such install
ment date.
(d) Exception.—Notwithstanding the provisions of the preceding sub-
sections, the addition to the tax with respect to any underpayment of any
installment shall not be imposed if the total amount of all payments of estt-
mated tax made on or before the last date prescribed for the payment of
such installment equals or exceeds whichever of the following is the lesser:
(1) The amount which would have been required to be paid on or
ae such date if the estimated tax were whichever of the following 18
e least:
(A) The tax shown on the return of the individual for the preceding
taxable year, if a return showing a liability for tax was filed by the in-
dividual for the preceding taxable year and such preceding year was a
taxable year of twelve months, or ;
(B) An amount equal to the tax computed, at the rates applicable
to the taxable year, on the basis of the taxpayer’s status with respect to
personal exemptions for the taxable year, but otherwise on the basis of the
facts shown on his return for, and the law applicable to, the preceding
taxable year, or
(C) An amount equal to 70 percent (66%; percent in the case of indi-
viduals referred to in § 58-151.21 (f), relating to income from farming)
of the tax for the taxable year computed by placing on an annualized basis
the taxable income for the months in the taxable year ending before the
month in which the installment is required to be paid. For purposes of this
subparagraph, the taxable income shall be placed on an annualized basis
(i) multiplying by 12 (or, in the case of a taxable year of less than
12 months, the number of months in the taxable year) the taxable income
(computed without deduction of personal exemptions) for the months in
the taxable year ending before the month in which the installment 1s
required to be paid.
(wu) dividing the resulting amount by the number of months in the
taxable year ending before the month in which such installment date falls,
a
(iu) deducting from such amount the deductions for personal exemp-
tions allowable for the taxable year (such personal exemptions being de-
termined as of the last date prescribed for payment of the installment) ; or
(2) An amount equal to 90 percent of the tax computed, at the rates
applicable to the taxable year, on the basis of the actual taxable income
for the months in the taxable year ending before the month in which the
installment is required to be paid.
(e) Application of section in case of tax withheld on wages.—For
purposes of applying this section—
(1) The estimated tax shall be computed without any reduction for
the amount which the individual estimates as his credit under § 58-151.17
(relating to tax withheld at source on wages), and
(2) The amount of the credit allowed under § 58-151.17 for the tazx-
able year shall be deemed a payment of estimated tax, and an equal part
of such amount shall be deemed paid on each installment date (determined
under § 58-151.22) for such taxable year, unless the taxpayer establishes
the dates on which all amounts were actually withheld, in which case the
amounts so withheld shall be deemed payments of estimated tax on the
dates on which such amounts were actually withheld.
(f) Short taxable year.—The application of this section to taxable
years of less than 12 months shall be in accordance with regulations pre-
scribed by the Commissioner.
8 58-151.24. Declarations of estimated tax to be filed with commis-
sioner of the revenue of the county or city.—Every resident individual
who is required by this article to file a declaration of estimated tax shall
file his declaration with the commissioner of the revenue for the county
or city in which he resides, and every nonresident individual who ts re-
quired by this article to file a declaration of estimated tax shall file his
declaration with the commissioner of the revenue for the county or city
in which all or a part of his income from sources within this State was
derived. Forms for use by taxpayers in preparing their declarations of
estimated tax shall be supplied by the Department of Taxation to the com-
missioners of the revenue, who shall mail or deliver them to the taxpayers
needing them so far as ascertainable not later than January fifteenth of
each year. Failure of any taxpayer to receive any such form shall not
relieve him of his obligation to file a declaration of estimated taz.
§ 58-151.25. Sheets or forms for recording declarations of estimated
tax.—The Department of Taxation shall prescribe and furnish assessment
sheets or forms for the use of every commissioner of the revenue for
recording declarations of estimated tax. These assessment sheets or forms
shall be made out in as many copies as may be prescribed by the Depart-
ment of Taxation. The original and, if the Department of Taxation so pre-
scribes, 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 rev-
enue. The commissioner of the revenue shall make out these sheets or
forms daily as and when declarations are received, and shall continue so
to make out such sheets or forms daily until all declarations so received
by him have been entered 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
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
showing entries made throughout such month, together with all declara-
tions of estimated tax represented by such entries.
§ 58-151.26. Estimated tax to be paid to treasurer of the county or
city.—The estimated tax with respect to which a declaration is required
by this article shall be paid as specified in § 58-151.22 to the treasurer
of the county or city with whose commissioner of the revenue the tax-
payer files his declaration of estimated tax.
If any payment is not made when due, there shall be added to the
past due amount a penalty of five percent thereof, and interest upon such
amount and on the accrued penalty shall be added at the rate of one-half
of one percent per month or fraction thereof from one month after the
amount was originally due until paid.
In every case the taxpayer may make his first payment to the treas-
urer of the county or city by attaching to his declaration when he files it
with the commissioner of the revenue a check or money order for the
proper amount made payable to the order of “Treasurer of the County
0) or “Treasurer Of the City Off ccc necccceoencesecmeeeeeeem-
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 sheets or forms mentioned in § 58-151.25 or if memo-
randum assessments 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 caremeeennennrrneinnrnnninne « Tf any check be not paid by the bank on which at
1s 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 declaration desires to pay in currency
or coin, the commissioner of the revenue with whom the declaration is
filed shall forthwith prepare a memorandum assessment on a form to be
prescribed and furnished by the Department of Taxation and a copy of
such memorandum assessment shall be immediately certified to the treas-
urer who shall receive the currency or coin from the taxpayer and give his
receipt therefor. Memorandum assessments shall be subsequently entered
by the commissioner of the revenue on the sheets or forms mentioned in
§ 58-151.25 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 recording and collection of estimated tax.
Each county and city treasurer shall send notices to all pertinent tax-
payers a reasonable time before any installment (except the first) 1s to
become due; but the failure of a taxpayer to receive such a notice shall not
relieve him of his obligation to pay the installment by its due date. Such
notices shall be in such form and shall contain such information as may be
prescribed by the Department of Taxation. Forms of necessary tax bills and
receipts shall be also prescribed by the Department of Taxation.
Within ten days after the close of each month each county and city
treasurer shall transmit to the Department of Taxation in such form as
the Department may prescribe such information and data as may be re-
quired by the Department with respect to all collections of estimated tax
throughout the next preceding month and all uncollected items.
As of June thirtieth, nineteen hundred and sixty-four, with respect
to taxable years beginning in nineteen hundred and sixty-three; and as of
June thirtieth of each succeeding year, with respect to taxable years be-
ginning in the next preceding year, each county and city treasurer shall in
the month of July transmit to the Department of Taxation a final report
under this section in such form as the Department may prescribe. The
Department, upon receiving 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 uncollected
items, and such treasurer shall not receive any of such items after he has
transmitted such final report to the Department of Taxation.
8 §8-151.27. Wilful failure or refusal to file declaration of estimated
tax, or making false and fraudulent statement, a misdemeanor.—Any
person required under this article to file a declaration of estimated tax
who willfully fails or refuses to file such declaration, at the time or times
required by this article, and any person who, with intent to defraud the
State, makes any false statement in any such declaration, shall be guilty of
a misdemeanor.
§ 58-151.28. Certain sections applicable to declarations, returns and
reports filed under this article—S§§ 58-98 through 58-97 (relating to the
confidential nature of tax information and the preservation of reports and
returns) shall apply to declarations of estimated tax as well as to all re-
turns and reports filed under this article. § 58-105.1 (relating to special
instances in which an individual taxpayer may file an income tax return
with the Department of Taxation) shall also apply to a declaration of estt-
mated tax.
§ 58-151.29. State Tax Commissioner to advise and instruct local
commissioners of the revenue and treasurers.—The State Tax Commis-
sioner shall exercise general supervision over, and shall advise and instruct,
all commissioners of the revenue and treasurers of the counties and cities
in the performance of their duties under this chapter.
§ 58-151.80. Oaths or affirmations unnecessary on returns, decla-
rations or reports filed under this article; misdemeanor to subscribe false
return, declaration or report.—No return, declaration, or report filed under
this article need be verified by the oath or affirmation of the person or
persons who are required by law to sign the same, but the signature of
such person or persons to any such return, declaration or report shall be
sufficient. Any such person who wilfully subscribes any such return,
declaration or report which he does not believe to be true and correct as to
every material matter shall be guilty of a misdemeanor.
§ 58-151.81. Refunds to individual income taxpayers.—In the case
of any overpayment of any tax, addition to tax, interest or penalties im-
posed on an individual income taxpayer by this chapter, whether by rea-
son of excessive withholding, overestimating and overpaying estimated
tax, error on the part of the taxpayer, or an erroneous assessment of tax,
the Commissioner shall order a refund of the amount of the overpayment
to the taxpayer. The overpayment shall be refunded out of the State
treasury on the order of the Commissioner upon the Comptroller.
Whenever the annual income tax return of an individual income taz-
payer indicates in the place provided thereon that the taxpayer has over-
paid his tax for the taxable year by reason of excessive withholding or
overestimating and overpaying estimated tax, or both, the amount of the
overpayment as shown on his return, subject to correction for error, shall
be refunded to him as soon as practicable. If such refund be not made
within six months from the date the return was filed or due to be filed,
whichever is later, interest on such refund at the rate of four percent per
annum shall be computed and allowed from the time of the expiration of
such six-months’ period to the date of payment. The making of any refund
shall not absolve any taxpayer of any income tax liability which may in
fact exist and the Commissioner may make any assessment for any de-
ficiency in the manner provided by law.
No refund under this section, however, shall be made for any over-
payment of less than two dollars except on special written application
of the taxpayer, nor shall any refund of any amount under this section
be made, whether on discovery or on written application of the taxpayer,
if such discovery is not made or such written application is not received
within three years from December thirty-first of the year in which the
annual return of the taxpayer was required by this chapter to be filed,
or within six months of the payment of the tax alleged to be an overpay-
ment, whichever ts the later.
Whenever any taxpayer is entitled to a refund under this section, or
under § 58-114 or 8§ 58-1118 through 58-1121, and such taxpayer owes the
State a past due income tax, or balance thereof, for any year, the amount of
such refund may be credited on such past due income tax or balance, to the
extent indicated.
This section shall apply with respect to taxable years beginning after
December 31, 1962.
§ 58-151.82. Rules and regulations.—Rules and regulations promul-
gated by the Commissioner under this chapter shall not be subject to
Chapter 1.1 of Title 9 of the Code of Virginia, the short title of which is
“General Administrative Agencies Act’.
§ 58-151.38. Moneys payable into general fund of the State treasury.
—All moneys collected by the Commissioner and county and city treasurers
under this chapter shall be paid into the general fund of the State treasury.
§ 58-151.34. Personnel, supplies, equipment, other expenses, office
space.—The Commissioner may employ all necessary personnel and pur-
chase such supplies and purchase or rent such equipment and incur such
other expenses as may be necessary for the administration of this article.
All such costs and expenses shall be paid out of appropriations made to the
Department of Taxation. Unless adequate office space is provided in a
State-owned building for the administration of this article, the Com-
missioner is hereby authorized to rent quarters for the purpose, and the
cost thereof shall be paid as a part of the cost of administering this article.
§ 58-151.35. Appropriation.—The cost incurred by the Commissioner
in administering this article shall be paid out of the general fund of the
State treasury, and there is hereby appropriated to the Department of
Taxation, out of the general fund of the State treasury, for such purpose,
for each year of the biennium beginning July first, nineteen hundred and
sixty-two, a sum sufficient, estimated at two hundred thousand dollars for
each such year. In administering this article, however, the Commissioner
shall utilize existing personnel and facilities to the extent that this can be
reasonably done without detriment to other necessary activities of the
Department of Taxation.