Nielsen County v. Bd. of Arlington County

In 2010, the Commissioner of Revenue of Arlington County (“County”) audited Nielsen for several of the previous tax years. Determining that Nielsen failed to pay sufficient tax on its business license, the County issued an additional tax assessment on Nielsen for the 2007 tax year. Nielsen appealed. The Virginia Tax Commissioner (“Commissioner”) concluded that the County had used an incorrect methodology in the 2007 tax year assessment and instead permitted a payroll percentage methodology to be used to calculate the deduction to the county tax on Nielsen’s business license. The County and the Commissioner appealed. The circuit court reversed the Commissioner’s decision and reinstated the County’s assessment, concluding that the Commissioner’s methodology for calculating the relevant tax deduction was contrary to law and arbitrary and capricious in its application. The Supreme Court reversed, holding that the Commissioner’s ruling was not contrary to law or arbitrary and capricious in application. Remanded. View "Nielsen County v. Bd. of Arlington County" on Justia Law