City of Martinsville v. Commonwealth Boulevard Associates, LLC, 268 Va. 697

Summary

The Supreme Court of Virginia held that a taxpayer may seek relief under Code § 58.1-3984 from an erroneous annual real estate tax levy without proving that the prior general reassessment was erroneous when originally made. The court affirmed a reduction of the property's assessed value and a refund of taxes paid for the first half of 2001, based on evidence that the assessment exceeded fair market value.

Holdings

1. Yes. A taxpayer may obtain relief under Code § 58.1-3984 by proving that either the general reassessment or the annual levy valued the property above fair market value, was nonuniform in application, or was otherwise invalid or illegal; the taxpayer need not show that the prior general reassessment was erroneous when made.
2. Yes. Upon finding that the property was assessed above fair market value for the first half of 2001, the trial court could reduce the assessment to fair market value and order repayment of taxes paid under the erroneous assessment.

Questions Presented

1. Whether a taxpayer may challenge an annual real-estate tax levy under Code § 58.1-3984 without proving that the prior general reassessment was erroneous when originally made.
2. Whether the trial court could reduce the assessment to the property's fair market value and order a refund of taxes paid under the erroneous levy.

Disposition

affirmed