CITY OF CHARLOTTESVILLE, VIRGINIA
                  CITY COUNCIL AGENDA



  Agenda Date:     July 18, 2022

  Action           Approval of Refund of Business License Tax Payment
  Required:

  Presenter:       Todd Divers, Commissioner of the Revenue

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

  Title:           Authorizing a refund of $8,132.19 to a taxpaying entity or
                   business, for business license tax paid in error for 2022 (1 of 2
                   readings)


Background
Ownership of a Charlottesville City business changed in August of 2021. In addition to
filing for a renewal of their business license for 2022 under the new entity, they
mistakenly submitted and paid for a renewal under the old entity. We subsequently
discovered that the old entity had ceased operations and therefore did not need a 2022
business license. We, therefore, are obliged to refund the tax collected in error.

The City is required to refund business license taxes paid in error with interest per
Code of Virginia §58.1-3703.1 (A) (2) (e). The amount paid for the 2022 business
license was $7,891.76. In addition, Code of Virginia §58.1-3703.1(A)(2)(e) states:
“Interest shall be paid on the refund of any BPOL tax from the date of payment or due
date, whichever is later, whether attributable to an amended return or other reason.
Interest on any refund shall be paid at the same rate charged under §58.1-3916.” The
interest amount is $240.43.

Discussion
City Code requires Council approval for any tax refunds resulting from an erroneous
assessment in excess of $2,500 . Payment of interest is also required in accordance
with Section 14-12(g) of the Charlottesville City Code.

Per City Code Sec. 30-6(b), the Commissioner of the Revenue has provided to the City
Attorney information necessary to enable her to consent to the determination of the
Commissioner of the Revenue that the tax paid by the taxpayer was erroneous and
should therefore be refunded. The refund has therefore 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

Community Engagement
n/a

Budgetary Impact
The refund will reduce current year Business License Tax revenue (GL 410150) by
$8,132.19. If revenues in GL 410150 are not sufficient to cover such refund, funds
shall be drawn from the Citywide reserve (GL 1631001000).

Recommendation
Approval of the tax refund.

Suggested Motion: “I move the RESOLUTION authorizing a refund of $8,132.19 to a
taxpaying entity or business, for business license taxes paid in error for 2022”

Alternatives
n/a

Attachments
1.   Refund Calculation
2.   Resolution