58.1-1805 - Memorandum of lien for collection of taxes; release of lien.
§ 58.1-1805. Memorandum of lien for collection of taxes; release of lien.
A. If any taxes or fees, including penalties and interest, assessed by theDepartment of Taxation in pursuance of law against any person, are not paidwithin thirty days after the same become due, the Tax Commissioner may file amemorandum of lien in the circuit court clerk's office of the county or cityin which the taxpayer's place of business is located, or in which thetaxpayer resides. If the taxpayer has no place of business or residencewithin the Commonwealth, such memorandum may be filed in the Circuit Court ofthe City of Richmond. A copy of such memorandum may also be filed in theclerk's office of all counties and cities in which the taxpayer owns realestate. Such memorandum shall be recorded in the judgment docket book andshall have the effect of a judgment in favor of the Commonwealth, to beenforced as provided in Article 19 (§ 8.01-196 et seq.) of Chapter 3 of Title8.01, except that a writ of fieri facias may issue at any time after thememorandum is filed. The lien on real estate shall become effective at thetime the memorandum is filed in the jurisdiction in which the real estate islocated. No memorandum of lien shall be filed unless the taxpayer is firstgiven ten or more days' prior notice of intent to file a lien; however, inthose instances where the Tax Commissioner determines that the collection ofany tax, penalties or interest required to be paid pursuant to law will bejeopardized by the provision of such notice, notification may be provided tothe taxpayer concurrent with the filing of the memorandum of lien. Suchnotice shall be given to the taxpayer at his last known address. For purposesof this section, "last known address" means the address shown on the mostrecent return filed by or on behalf of the taxpayer or the address providedin correspondence by or on behalf of the taxpayer indicating that it is achange of the taxpayer's address.
B. Recordation of a memorandum of lien hereunder shall not affect the rightto a refund or exoneration under this chapter, nor shall an application forcorrection of an erroneous assessment affect the power of the TaxCommissioner to collect the tax, except as specifically provided in thistitle.
C. If after filing a memorandum of lien as required by subsection A, the TaxCommissioner determines that it is in the best interest of the Commonwealth,the Tax Commissioner may place padlocks on the doors of any businessenterprise that is delinquent in either filing or paying any tax owed to theCommonwealth, or both. He shall also post notices of distraint on each of thedoors so padlocked. If after three business days, the tax deficiency has notbeen satisfied or satisfactory arrangements for payment made, the TaxCommissioner may cause a writ of fieri facias to be issued.
It shall be a Class 1 misdemeanor for anyone to enter the padlocked premiseswithout prior approval of the Tax Commissioner.
In the event that the taxpayer against whom the distraint has been appliedsubsequently makes application for correction of the assessment under §58.1-1821, the taxpayer shall have the right to post bond equaling the amountof the tax liability in lieu of payment until the application is acted upon.
The provisions of subsection C shall be enforceable only after thepromulgation, by the Tax Commissioner, of regulations under theAdministrative Process Act (§ 2.2-4000 et seq.) setting forth thecircumstances under which this subsection can be used.
D. A taxpayer may appeal to the Tax Commissioner after a memorandum of lienhas been filed under this section if the taxpayer alleges an error in thefiling of the lien. The Tax Commissioner shall make a determination of suchan appeal within fourteen days. If the Tax Commissioner determines that thefiling was erroneous, he shall issue a certificate of release of the lienwithin seven days after such determination is made.
(Code 1950, §§ 58-41 to 58-43; 1971, Ex. Sess., c. 155; 1984, c. 675; 1985,c. 221; 1989, cc. 629, 642; 1993, c. 384; 1996, c. 634.)