A. In the discretion of the Commission, any nonprofit organization thatelects to become liable for payments in lieu of taxes shall be requiredwithin thirty days after the effective date of its election (i) to executeand file with the Commission a surety bond approved by the Commission or (ii)to deposit with the Commission money or securities. The amount of such bondor deposit shall be determined in accordance with the provisions of thissection.
B. The amount of the bond or deposit required by this section shall be apercentage, determined by the Commission, of the organization's taxable wagespaid for employment as defined in subdivision 4 of subsection A of § 60.2-213for the four calendar quarters immediately preceding the effective date ofthe election, the renewal date in the case of a bond, or the biennialanniversary of the effective date of election in the case of a deposit ofmoney or securities, whichever date is most recent and applicable. If thenonprofit organization did not pay wages in each of such four calendarquarters, the amount of the bond or deposit shall be as determined by theCommission.
C. Any bond deposited under this section shall be in force for a period ofnot less than two taxable years and shall be renewed with the approval of theCommission, at such time as the Commission may prescribe, but not lessfrequently than at two-year intervals as long as the organization continuesto be liable for payments in lieu of taxes. The Commission shall requireadjustments to be made in a previously filed bond as it deems appropriate. Ifthe bond is to be increased, the adjusted bond shall be filed by theorganization within thirty days of the date notice of the required adjustmentwas mailed or otherwise delivered to it. Failure by any organization coveredby such bond to pay the full amount of payments in lieu of taxes when due,together with any applicable interest and penalties provided for insubdivision 6 of subsection C of § 60.2-501, shall render the surety liableon such bond to the extent of the bond, as though the surety was suchorganization.
D. Any deposit of money or securities made in accordance with this sectionshall be retained by the Commission in an escrow account until liabilityunder the election is terminated, at which time it shall be returned to theorganization, less any deductions as hereinafter provided. The Commission maydeduct from the money deposited under this section by a nonprofitorganization or sell the securities it has so deposited to the extentnecessary to satisfy any due and unpaid payments in lieu of taxes and anyapplicable interest and penalties provided for in subdivision 6 of subsectionC of § 60.2-501. The Commission shall require the organization within thirtydays following any deduction from a money deposit or sale of depositedsecurities under the provisions of this subsection to deposit sufficientadditional money or securities to make whole the organization's deposit atthe prior level. Any cash remaining from the sale of such securities shall bea part of the organization's escrow account. The Commission may review theadequacy of the deposit made by any organization. If, as a result of suchreview, it determines that an adjustment is necessary, the organization shallbe required to make additional deposit within thirty days of written noticeof the determination or the Commission shall return to it such portion of thedeposit as it no longer considers necessary, whichever action is appropriate.Disposition of income from securities held in escrow shall be governed by theapplicable provisions of the state law.
E. If any nonprofit organization fails to file a bond or make a deposit, orto file a bond in an increased amount or to increase or make whole the amountof a previously made deposit, as provided under this subsection, theCommission may terminate such organization's election to make payments inlieu of taxes and such termination shall continue for not less than the fourconsecutive calendar quarter period beginning with the quarter in which suchtermination becomes effective; however, the Commission may extend for goodcause the applicable filing, deposit or adjustment period by not more thanthirty days.
(1974, c. 466, § 60.1-89; 1981, cc. 248, 252; 1986, c. 480.)
A. In the discretion of the Commission, any nonprofit organization thatelects to become liable for payments in lieu of taxes shall be requiredwithin thirty days after the effective date of its election (i) to executeand file with the Commission a surety bond approved by the Commission or (ii)to deposit with the Commission money or securities. The amount of such bondor deposit shall be determined in accordance with the provisions of thissection.
B. The amount of the bond or deposit required by this section shall be apercentage, determined by the Commission, of the organization's taxable wagespaid for employment as defined in subdivision 4 of subsection A of § 60.2-213for the four calendar quarters immediately preceding the effective date ofthe election, the renewal date in the case of a bond, or the biennialanniversary of the effective date of election in the case of a deposit ofmoney or securities, whichever date is most recent and applicable. If thenonprofit organization did not pay wages in each of such four calendarquarters, the amount of the bond or deposit shall be as determined by theCommission.
C. Any bond deposited under this section shall be in force for a period ofnot less than two taxable years and shall be renewed with the approval of theCommission, at such time as the Commission may prescribe, but not lessfrequently than at two-year intervals as long as the organization continuesto be liable for payments in lieu of taxes. The Commission shall requireadjustments to be made in a previously filed bond as it deems appropriate. Ifthe bond is to be increased, the adjusted bond shall be filed by theorganization within thirty days of the date notice of the required adjustmentwas mailed or otherwise delivered to it. Failure by any organization coveredby such bond to pay the full amount of payments in lieu of taxes when due,together with any applicable interest and penalties provided for insubdivision 6 of subsection C of § 60.2-501, shall render the surety liableon such bond to the extent of the bond, as though the surety was suchorganization.
D. Any deposit of money or securities made in accordance with this sectionshall be retained by the Commission in an escrow account until liabilityunder the election is terminated, at which time it shall be returned to theorganization, less any deductions as hereinafter provided. The Commission maydeduct from the money deposited under this section by a nonprofitorganization or sell the securities it has so deposited to the extentnecessary to satisfy any due and unpaid payments in lieu of taxes and anyapplicable interest and penalties provided for in subdivision 6 of subsectionC of § 60.2-501. The Commission shall require the organization within thirtydays following any deduction from a money deposit or sale of depositedsecurities under the provisions of this subsection to deposit sufficientadditional money or securities to make whole the organization's deposit atthe prior level. Any cash remaining from the sale of such securities shall bea part of the organization's escrow account. The Commission may review theadequacy of the deposit made by any organization. If, as a result of suchreview, it determines that an adjustment is necessary, the organization shallbe required to make additional deposit within thirty days of written noticeof the determination or the Commission shall return to it such portion of thedeposit as it no longer considers necessary, whichever action is appropriate.Disposition of income from securities held in escrow shall be governed by theapplicable provisions of the state law.
E. If any nonprofit organization fails to file a bond or make a deposit, orto file a bond in an increased amount or to increase or make whole the amountof a previously made deposit, as provided under this subsection, theCommission may terminate such organization's election to make payments inlieu of taxes and such termination shall continue for not less than the fourconsecutive calendar quarter period beginning with the quarter in which suchtermination becomes effective; however, the Commission may extend for goodcause the applicable filing, deposit or adjustment period by not more thanthirty days.
(1974, c. 466, § 60.1-89; 1981, cc. 248, 252; 1986, c. 480.)
A. In the discretion of the Commission, any nonprofit organization thatelects to become liable for payments in lieu of taxes shall be requiredwithin thirty days after the effective date of its election (i) to executeand file with the Commission a surety bond approved by the Commission or (ii)to deposit with the Commission money or securities. The amount of such bondor deposit shall be determined in accordance with the provisions of thissection.
B. The amount of the bond or deposit required by this section shall be apercentage, determined by the Commission, of the organization's taxable wagespaid for employment as defined in subdivision 4 of subsection A of § 60.2-213for the four calendar quarters immediately preceding the effective date ofthe election, the renewal date in the case of a bond, or the biennialanniversary of the effective date of election in the case of a deposit ofmoney or securities, whichever date is most recent and applicable. If thenonprofit organization did not pay wages in each of such four calendarquarters, the amount of the bond or deposit shall be as determined by theCommission.
C. Any bond deposited under this section shall be in force for a period ofnot less than two taxable years and shall be renewed with the approval of theCommission, at such time as the Commission may prescribe, but not lessfrequently than at two-year intervals as long as the organization continuesto be liable for payments in lieu of taxes. The Commission shall requireadjustments to be made in a previously filed bond as it deems appropriate. Ifthe bond is to be increased, the adjusted bond shall be filed by theorganization within thirty days of the date notice of the required adjustmentwas mailed or otherwise delivered to it. Failure by any organization coveredby such bond to pay the full amount of payments in lieu of taxes when due,together with any applicable interest and penalties provided for insubdivision 6 of subsection C of § 60.2-501, shall render the surety liableon such bond to the extent of the bond, as though the surety was suchorganization.
D. Any deposit of money or securities made in accordance with this sectionshall be retained by the Commission in an escrow account until liabilityunder the election is terminated, at which time it shall be returned to theorganization, less any deductions as hereinafter provided. The Commission maydeduct from the money deposited under this section by a nonprofitorganization or sell the securities it has so deposited to the extentnecessary to satisfy any due and unpaid payments in lieu of taxes and anyapplicable interest and penalties provided for in subdivision 6 of subsectionC of § 60.2-501. The Commission shall require the organization within thirtydays following any deduction from a money deposit or sale of depositedsecurities under the provisions of this subsection to deposit sufficientadditional money or securities to make whole the organization's deposit atthe prior level. Any cash remaining from the sale of such securities shall bea part of the organization's escrow account. The Commission may review theadequacy of the deposit made by any organization. If, as a result of suchreview, it determines that an adjustment is necessary, the organization shallbe required to make additional deposit within thirty days of written noticeof the determination or the Commission shall return to it such portion of thedeposit as it no longer considers necessary, whichever action is appropriate.Disposition of income from securities held in escrow shall be governed by theapplicable provisions of the state law.
E. If any nonprofit organization fails to file a bond or make a deposit, orto file a bond in an increased amount or to increase or make whole the amountof a previously made deposit, as provided under this subsection, theCommission may terminate such organization's election to make payments inlieu of taxes and such termination shall continue for not less than the fourconsecutive calendar quarter period beginning with the quarter in which suchtermination becomes effective; however, the Commission may extend for goodcause the applicable filing, deposit or adjustment period by not more thanthirty days.
(1974, c. 466, § 60.1-89; 1981, cc. 248, 252; 1986, c. 480.)
