766 S.E.2d 912
Va.2015Background
- The City of Fredericksburg created the Celebrate Virginia South CDA in 2000 and amended it in 2005; CVAS 2 owns real estate inside the CDA's district.
- The City levied real estate taxes and special assessments for the CDA's benefit on CVAS 2's property, with delinquencies dating to 2012 for taxes and 2009 for assessments.
- On June 13, 2013, the City sued CVAS 2 to sell the property to collect the delinquent taxes and assessments, basing its action on Article 4 of Chapter 39, Title 58.1.
- CVAS 2 moved to dismiss, arguing noncompliance with § 58.1-3965; after a hearing, the circuit court granted the decree of sale and appointed a commissioner, denying CVAS 2's dismissal motion.
- CVAS 2 appealed; the Court held the decree was an interlocutory order in a case on an equitable claim, and reversed the circuit court’s order to sell, finding lack of strict statutory compliance; case was dismissed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the circuit court had authority to order sale under the delinquent-tax statute | CVAS 2 argues the City failed to comply with §58.1-3965(A) and thus could not obtain a decree of sale. | City contends the decree of sale was properly granted under the applicable statutory framework for delinquent taxes and assessments. | No; decree of sale reversed for lack of strict compliance. |
| Whether delinquent special taxes/assessments fall under the same collection framework as taxes for sale | CVAS 2 contends the City misapplied the statutory scheme, misclassifying the obligation to support sale under §15.2-5158(A)(3) or (A)(5). | City maintains the appropriate statutory path supports sale of the property for delinquent obligations. | Statutory framework misapplied; the City failed to establish authority to sell. |
| Whether the relief turns on whether the obligation is a special tax or a special assessment | CVAS 2 asserts the obligation is a special assessment, not a special tax, and requires a different collection regime. | City contends that the obligation can be treated as a special tax under the CDA framework for collection. | Court held the decree invalid regardless of classification due to statutory noncompliance. |
Key Cases Cited
- Lester Group, Inc. v. Little, 238 Va. 54 (Va. 1989) (sale of property to collect taxes is statutory, not common law)
- Isle of Wight Materials Co. v. Cowling Bros., 246 Va. 103 (Va. 1993) (enforcement of statutory rights rests on compliance)
- Smyth County Cmty. Hosp. v. Town of Marion, 259 Va. 328 (Va. 2000) (statutory interpretation as mixed question of law and fact)
- Campbell v. Harmon, 271 Va. 590 (Va. 2006) (equitable claim context for accounting and related relief)
- City of Richmond v. Richmond-Petersburg Turnpike Authority, 204 Va. 596 (Va. 1963) (special assessments as taxes; distinctions between taxes and assessments)