CITY OF CHARLOTTESVILLE, VIRGINIA
                 CITY COUNCIL AGENDA




  Agenda Date:         July 20, 2020

  Action Required:     Approval of Refund of Tax Payment

  Presenter:           Jason Vandever, City Treasurer

  Staff Contacts:      Jason Vandever, City Treasurer
                       Todd Divers, Commissioner of the Revenue

  Title:               Refund of Tax Payment to Silverchair Science & Communications
                       Inc


Background:

Silverchair Science & Communications Inc. has filed amended business license returns with the
City of Charlottesville for tax years 2017, 2018, and 2019 wherein it claims deductions in those
years due to having conducted business in other states where it was liable for an income or other
tax based upon income pursuant to Virginia State Code §58.1-3732(B)(2). Having reviewed the
documentation provided by Silverchair Science & Communications Inc., the Charlottesville
Commissioner of the Revenue agrees that refunds are properly due for the years in question.

Discussion:

City Code requires Council approval for any tax refunds resulting from an erroneous assessment
in excess of $2,500 (City Code Sec. 30-6b). Payment of interest is also required in accordance
with Section 14-12(g) of the Charlottesville City Code. The refund has been approved for
presentment to Council by the City Attorney, Commissioner of the Revenue, and City Treasurer.

Alignment with City Council’s Vision and Strategic Plan:

n/a

Budgetary Impact:

The refund will reduce current year Business License Tax revenue (GL 410150) by $75,520.22
and Interest Revenue (GL 400120) by $14,822.27.

Recommendation:

Approval of the tax refund.

Alternatives:
n/a

Attachments:

Interest Calculation
Council Resolution
                        Refund Interest Calculation‐ Account 6534 Silverchair Science & Communications Inc
Payment Paid     Today      Months Rate        Annualized Interest     Overpayment New Balance Tax Refund             Interest refund
2017 BL 3/1/2017 6/15/2020       39 8.00% $                 2,762.90 $ 34,536.19 $                - $       34,536.19 $       8,979.41
2018 BL 3/1/2018 6/15/2020       27 8.00% $                 1,744.45 $ 21,805.67 $                - $       21,805.67 $       3,925.02
2019 BL 3/1/2019 6/15/2020       15 8.00% $                 1,534.27 $ 19,178.36 $                - $       19,178.36 $       1,917.84
                                                                         Interest Refund Due                           $     14,822.27
                                                                                                     Total Refund      $     90,342.49

                                                                                                     Tax Refund        $    75,520.22
                                                                                                     Interest refund   $    14,822.27
                                                                                                     Total Refund      $    90,342.49
                         RESOLUTION
       AUTHORIZING REFUND TO SILVERCHAIR SCIENCE &
                    COMMUNICATIONS INC
     OF BUSINESS LICENSE TAXES PAID FOR 2017, 2018, AND 2019
        WHEREAS, the Commissioner of the Revenue has determined that Silverchair Science
& Communications Inc. incorrectly paid 2017, 2018, and 2019 Charlottesville business license
tax on gross receipts that were subject to income or other tax based upon income in other
jurisdictions; and

     WHEREAS, the 2017, 2018, and 2019 business license taxes for Silverchair Science &
Communications Inc. were paid on time and as filed; and

        WHEREAS, the Commissioner of the Revenue has certified that a refund of taxes paid is
due in the amount of $90,342.49; and

        WHEREAS, City Code Section 30-
6(b) requires City Council approval for any tax refund exceeding $2,500.00; now, therefore,

       BE IT RESOLVED by the Council for the City of Charlottesville, Virginia, that the City
Council hereby authorizes the City Treasurer to issue a refund of $90,342.49, payable to
Silverchair Science & Communications Inc.