City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 2, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE
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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to amend Section 3-2-230 of the Alexandria City Code related to the due date for personal property taxes for federal employees and essential federal employees furloughed during a government shutdown.
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ISSUE: Consideration of an ordinance to amend City Code section 3-2-230 to incorporate changes made during the 2026 Session of the General Assembly which allow for an automatic extension of the personal property tax due date for federal employees impacted by a federal government shutdown.
RECOMMENDATION: That City Council pass the proposed ordinance on first reading and schedule it for public hearing, second reading, and final passage on September 19, 2026.
BACKGROUND: This amendment is based on the adoption of HB 915 during the 2026 Session of the Virginia General Assembly which amended Section 58.1-3916 of the Code of Virginia. A copy of the legislation is provided for reference in Attachment 3. In addition, a technical amendment to the ordinance is proposed which deletes a reference to an obsolete section.
DISCUSSION: The proposed ordinance establishes a temporary extension of the personal property tax payment deadline for eligible federal employees impacted by a federal government shutdown. The enabling legislation allows City Council to adopt by ordinance an automatic extension of the personal property due date for federal employees who are furloughed due to a federal shutdown and to essential federal employees who continue to work during a shutdown but do not otherwise receive immediate payment for such work.
State code requires that federal employees apply for an extension and stipulates that the extension shall end and taxes shall be due no later than ninety (90) days following the reopening of the federal government. The Department of Finance anticipates using the flexible, electronic, application process that it has successfully used during prior shutdowns.
HB 915 provides a “flexible and uniform way to deal with federal shutdowns, creating uniformity and predictability for affected taxpayers.”
While existing law empowers City Council to “provide by resolution for reasonable extensions of time, not to exceed 90 days” for payment of taxes “whenever good cause exists,” this is broad authority applicable equally to all taxpayers. HB 915 provides targeted relief for federal employees who have been repeatedly impacted by federal shutdowns over the last few years. Providing additional authority for this specific subset of taxpayers helps limit the breadth of any extension and thus minimizes potential financial impact to City cashflow.
Staff is bringing this proposed ordinance to Council in advance of the next Personal Property due date on October 5, 2026.
FISCAL IMPACT: None. During the last federal shutdown, the Department of Finance managed around 200 payment plans for impacted federal employees. With a high compliance rate, there was no significant impact from these payment plans. Staff anticipate no adverse impact should an extension authorized by the attached ordinance go into effect. While the law says that taxes shall be due “no later than 90 days following the reopening of the federal government,” this is simply resetting the payment due date. Depending on individual circumstances, Finance can still provide a payment plan from that date on a case by case basis, if necessary. The only difference is that penalties and interest would apply from that point. Based on experience, this would be the exception, not the norm.
ATTACHMENTS:
Attachment 1 - Ordinance Cover
Attachment 2 - Proposed Ordinance Amending Section 3-2-230, Alexandria City Code
Attachment 3 - HB 915, Amending Va. Code §58.1-3916
STAFF:
Johanna Seltzer, Deputy Finance Director
Sarah E. McElveen, Assistant City Attorney III