Minutes 09/26/2023 - Laserfiche WebLink

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September 26, 2023 2016 139,847.48 1.30 139,847.48 9,118,670 2017 139,847.48 1.30 139,847.48 9,118,670 2018 -0- 1.30 -0- 9,118,670 2019 -0- 1.30 -0- 9,118,670 2020 -0- 1.30 -0- 10,638,830 2021 -0- 1.30 -0- 10,638,830 2022/ 3,647.80 1.30 -0- 10,638,830 2023 This chart appears to include the Fair Market Value, the calculated Fair Market Tax levy using the adopted real estate tax rate for tax years 2003 through 2017. The fourth column is labeled "ABATED TAXES." It appears by this chart that the entire tax levy was abated and no taxes were charged to the property owner. Additionally, the same chart shows that $0 taxes were levied for years 2018 through 2021. In both scenarios - abating all taxes levied or not charging taxes to a property qualified for a locally adopted Use Value program - the City did not follow the proper valuation and tax levy procedures outlined in Chapter 32 of Title 58.1, Article 4 of the Code of Virginia. The property in question was subject to real property taxes in those years. Additionally, two letters to the property owner were included in the information provided to me. The first, dated June 25, 2007, from the Assistant City Assessor, states that "\[i\]t is vital that we receive this (application) from you to retain the tax-exempt status of the Land Use only" (emphasis added). The second, dated August 6, 2019, from the City Assessor states "\[a\]s such, the land on which the golf course lies is exempt from taxation" (emphasis added). In both cases, the taxable status of the subject property appears to have been improperly classified by the City as "exempt." As summarized earlier, the subject property was subject to taxation pursuant to Chapter 32 of Title 58.1, Article 4 of the Code of Virginia. Please note, I did not receive copies of the official land books for the tax years in question, nor did I receive any billing or collection information. This review is based solely on the information provided to me by Dr. Mark Whitaker, Councilman for the City of Portsmouth. SUMMARY OF CONCLUSIONS • Based on the information provided to me, the City appears to have improperly classified the portion of the Elizabeth Manor Golf and Country Club (City of Portsmouth TMP: 0612-0010) as "exempt" from local taxation based on the Open Space Agreements referenced herein. • The City should have levied real property taxes on the subject property based upon its use value pursuant to Chapter 32 of Title 58.1, Article 4 of the Code of Virginia, and the Open Space Agreements referenced herein. ADVISORY COMMENT This advisory opinion is based on the fact presented. Any changes or the introduction of new fact may lead to a different conclusion. Please be advised that the Code of Virginia limits the involvement of the Department of Taxation to promulgating guidelines and issuing advisory opinions. Article X, Section 4 of the Virginia Constitution cedes property taxation to localities. The Department of Taxation shall not be required to interpret any local ordinance. While addressing the questions raised, this response is intended to provide advisory guidance only and does not constitute a formal or binding ruling.