CHAPTER 244

An Act to amend and reenact § 58-151.31 of the Code of Virginia, relating
to refunds of taxes to individual income taxpayers. [H 270]

Approved March 31, 1966

Be it enacted by the General Assembly of Virginia:

1. That § 58-151.31 of the Code of Virginia be amended and reenacted
as follows: .

§ 58-151.31. In the case of any overpayment of any tax, addition to
tax, interest or penalties imposed on an individual income taxpayer by
this chapter, whether by reason 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 tax-
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, may
be credited against the estimated income tax for the ensuing year at the
taxpayer’s election and according to regulations prescribed by the Depart-
ment of Taxation and such overpayments by either a husband or wife on
a separate return may be credited to the tax for the ensuing year of
either of them or may be credited to their joint tax at the election of the
person to whom the overpayment is payable; or otherwise such amount
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 defi-
ciency in the manner provided by law.

No refund under this section, however, shall be made for any over-
payment of less than * one dollar 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 overpayment,
whichever is the later.

Whenever any taxpayer is entitled to a refund under this section, or
under § 58-114 or §§ 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, as hereby amended, shall be in force on and after Janu-
ary first, nineteen hundred sixty-seven.