The Revenue Resources and Economic Commission has been concerned with personal property taxation for several years.  Its initial study, which included historical information, a summary of local assessment practices, and several recommendations for revising administration of the tax, was reported to the Governor and the 1979 General Assembly (Senate Document 9). The legislation which passed as a result of that analysis made only minor changes in the tax. All major aspects, including assessment practices and equity issues, were re-referred to the Commission. The Commission was requested to analyze the tax further and seek input from citizens, industries, and local governments.

A Subcommittee to examine this tax was appointed, and a group of "Active Participants" chosen from the commissioners of the revenue, industry representatives, attorneys, accountants, and related State and local personnel was invited to work closely with the Subcommittee. In addition, an extensive mailing list was made up so that elected officials and professionals from all local governments, including  commissioners of the revenue, selected legal and accounting firms, organizations with pertinent concerns, and interested parties such as taxpayer groups and citizens would receive all information (data and minutes from meetings) related to this study.

Public hearings were held in four localities throughout the State: Richmond, Norfolk, Roanoke, and Alexandria. Testimony came chiefly from local government personnel, both elected officials and professionals, and was concentrated on the subject of assessments, although many areas were addressed. The Commission feels that its further research, these hearings, and its well attended meetings have enabled it to examine thoroughly this area of taxation, and it therefore makes the following report. Areas of examination elaborated herein are:

I. Information for Commissioners of the Revenue

II. State Assistance

III. Role of the Division of Motor Vehicles

IV. Assessment Practices

V. Miscellaneous Aspects

VI. Merchants Capital Tax

VII. Capital Not Otherwise Taxed

Please note that throughout the report, recommendations make reference to the commissioners of the revenue. This term is meant to include directors of finance and other assessing officers who perform  personal property assessments in certain localities.

The report contains analysis and recommendations on the various issues related to personal property taxation. Since it is hoped that this study will also provide information for use by local governments,  industries, and other agencies, statistical information and descriptive data is included in the Appendix. Also included is a chart and summary describing the administration of the personal property tax in other states.