City of Richmond v. SunTrust Bank

SunTrust Bank and Richmond Redevelopment and Housing Authority (RRHA) owned two properties in the City of Richmond as tenants in common. The RRHA was exempt from taxation but SunTrust was not. In 2009, the City determined that SunTrust was liable not only for the taxes on its ownership interests, but also for the taxes on the RRHA's interests. The City accordingly corrected the assessments against SunTrust for 2006 through 2009 to reflect that it was liable for taxes on both its ownership interests and the RRHA's. SunTrust challenged the City's actions, and the circuit court ruled that the City had no authority to tax SunTrust for the RRHA's ownership interests in the properties. The Supreme Court affirmed, holding that the City had no authority pursuant to the parties' operating agreements, the state Constitution, or state law to tax SunTrust for the RRHA's ownership interests in the properties. View "City of Richmond v. SunTrust Bank" on Justia Law