23VAC10-400 Writ Taxes Regulations

REGULATIONS

Vol. 32 Iss. 18 - May 02, 2016

TITLE 23. TAXATION

DEPARTMENT OF TAXATION

Chapter 400

Fast-Track Regulation

Title of Regulation: 23VAC10-400. Writ Taxes Regulations (repealing 23VAC10-400-10).

Statutory Authority: § 58.1-203 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: July 1, 2016.

Effective Date: July 18, 2016.

Agency Contact: Joseph E. Mayer, Lead Policy Analyst, Department of Taxation, P.O. Box 27185, Richmond, VA 23261-7185, telephone [phone], FAX [phone], or email [e-mail].

Basis: Section 58.1-203 of the Code of Virginia authorizes the Tax Commissioner to issue regulations relating to the interpretation and enforcement of the laws governing taxes administered by the Department of Taxation. Sections 58.1-1727, 58.1-1728, and 58.1-1729 of the Code of Virginia impose writ taxes.

Purpose: As a result of a periodic review of the Writ Taxes Regulations (23VAC10-400) initiated by the Department of Taxation on April 28, 2015, and completed June 6, 2015, the Department of Taxation has determined that the regulation should be repealed because it provides no guidance beyond the plain meaning of the statutes to which it applies and is not necessary to protect the public health, safety, or welfare. A regulation that is not necessary to interpret the law or to protect the public health, safety, or welfare violates the general principles set forth in Governor McAuliffe's Executive Order 17 signed June 30, 2014.

Repeal of the regulation does not reflect any change in current tax policy. Repeal of the regulation will have no impact on the administration of the writ taxes.

Rationale for Using Fast-Track Rulemaking Process: The repeal of the Writ Taxes Regulations is expected to be noncontroversial because the regulation provides no guidance beyond the plain meaning of the statutes to which it applies. No comments were received during the periodic review of the regulation.

Substance: This action will repeal the Writ Taxes Regulations. A writ tax is levied on (i) any original suit that is commenced in a court of record, (ii) every case of removal or appeal of a cause from a district court to a court of record, (iii) every appeal from the decision of the board of supervisors or other governing body of a county to a court of record, (iv) every attachment returnable to a court of record, and (v) every writ of mandamus sued out of any court except the Supreme Court of Virginia. The taxes are paid to the clerk of court wherein the suit or other judicial proceeding is commenced.

Because the regulation provides no guidance beyond the plain meaning of the statutes to which it applies, repeal of the regulation does not reflect any change in current tax policy. Repeal of the regulation will have no impact on the administration of the writ taxes.

Issues: As the regulation provides no additional guidance to statutes that are clear and unambiguous, it is unnecessary. Accordingly, its repeal poses no disadvantages to the public or the Commonwealth.

Small Business Impact Review Report of Findings: This regulatory action serves as the report of the findings of the regulatory review pursuant to § 2.2-4007.1 of the Code of Virginia.

The Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Department of Taxation (Department) proposes to repeal this regulation.

Result of Analysis. The repeal of this regulation will have no impact in that all sections are either obsolete, or repetitive of either the Constitution of Virginia or the Code of Virginia.

Estimated Economic Impact. The text in this regulation is either obsolete, repetitive of language in the Constitution of Virginia (Article X, Section 6(a)), or repetitive of the Code of Virginia (§ 17.1-606). Thus, repealing the regulation will have no impact.

Businesses and Entities Affected. The regulation, relevant portion of the state constitution, and statute all pertain to exemptions to taxation on legal proceedings. The exemptions apply to the indigent and political subdivisions in particular.

Localities Particularly Affected. The proposed repeal of the regulation does not disproportionately affect particular localities.

Projected Impact on Employment. The proposed repeal of the regulation does not affect employment.

Effects on the Use and Value of Private Property. The proposed repeal of the regulation does not affect the use and value of private property.

Real Estate Development Costs. The proposed repeal of the regulation does not affect real estate development costs.

Small Businesses:

Definition. Pursuant to § 2.2-4007.04 of the Code of Virginia, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

Costs and Other Effects. The proposed repeal of the regulation does not affect small businesses.

Alternative Method that Minimizes Adverse Impact. The proposed repeal of the regulation does not affect small businesses.

Adverse Impacts:

Businesses. The proposed repeal of the regulation will not adversely affect businesses.

Localities. The proposed repeal of the regulation will not adversely affect localities.

Other Entities. The proposed repeal of the regulation will not adversely affect other entities.

Agency's Response to Economic Impact Analysis: The Department of Taxation agrees with the Department of Planning and Budget's economic impact analysis.

Summary:

The Department of Taxation determined that the regulation provides no guidance beyond the plain meaning of the statutes to which it applies and is not necessary to protect the public health, safety, or welfare. Therefore, the regulation is repealed. The repeal of the regulation does not reflect a change in current tax policy and has no impact on the administration of the writ taxes.

VA.R. Doc. No. R16-4559; Filed April 5, 2016, 12:05 p.m.