Council briefed on proposed code change to allow treasurer refunds for erroneous tax assessments up to $10,000

City staff briefed the Roanoke City Council on a proposed amendment to city code that would authorize the treasurer to refund erroneous tax assessments up to $10,000 when the commissioner of the revenue certifies the assessment was erroneous.

Presenting the item, Mr. Collins said the Code of Virginia authorizes refunds when a taxpayer’s assessment is shown to be incorrect and that the amendment would create a new section in city code (proposed section 2.206.1) allowing the treasurer to refund erroneous assessments up to $10,000 upon certification by the commissioner. "Regardless of fault, the code of Virginia authorizes and directs a refund to be provided in the cases of erroneous assessments," Collins said.

Commissioner LaFountain was on the dais for the briefing. Councilwoman Powers raised a concern about past cases in other localities in which large refunds with interest produced substantial liabilities; the staff confirmed that state law requires refunds of interest amounts when interest was assessed on late payments (the presenter noted that the applicable interest is 10 percent under state code). LaFountain said staff is working to be more diligent about flagging filings that appear to be out of range when reviewing taxpayer submissions.

With no objections from council, staff said the proposed amendment will be placed on the Oct. 20 council agenda for consideration and possible adoption.

The proposed amendment would change local administrative procedure for tax refunds; council members asked about safeguards and historic circumstances in other localities during the discussion. Council did not take a final vote on the ordinance at the briefing; it was referred to a future agenda for formal consideration.