File #: ID 21-093    Version: 1 Name: M&T refund
Type: Action Item Status: Passed
File created: 2/16/2021 In control: City Council
On agenda: 2/23/2021 Final action: 2/23/2021
Title: Consider a refund for 2016, 2017, 2018 and 2019 Machinery and Tool (M&T) tax for one Manufacturer
Attachments: 1. Memorandum, 2. Redacted Certificate

Subject:

Title

Consider a refund for 2016, 2017, 2018 and 2019 Machinery and Tool (M&T) tax for one Manufacturer

Body

Presented By:  Chris Brown, City Attorney

Recommendation and Review

§ 58.1-3981 of the Code of Virginia requires City Council approval of any refunds in excess of $2,500.  To provide Council with adequate information to determine approval while also maintaining confidentiality pursuant to Code of Virginia §58.1-3, the business name has been redacted on the Certificate of the Commissioner of the Revenue.  The original version of the Commissioner’s certification is on file in the Commissioner’s office, protected by attorney-client privilege, and will be signed by the City Attorney and provided to the Treasurer following Council approval.

 

TAXPAYER A filed Machinery and Tools Tax Returns for the years 2016, 2017, and 2018 that were prepared by a hired outside tax preparation firm.  In 2019, TAXPAYER A hired a new tax preparation firm. In December 2019, the new tax preparation firm submitted amended machinery and tools returns for each of the above stated years and they stated that non-machinery and tools assets had been included in the original filings. The audit of the manufacturer was completed in February 2021 and the following refunds resulted: 2016 $35,651.87; 2017 $45,925.75; 2018 $14,049.47 and 2019 $7,738.83.