City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 29, 2016
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Amend Section 3-2-183 of the City Code Related to Delinquent Taxes, Penalty and Interest.
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ISSUE: Consideration of an ordinance to amend the City Code related to delinquent taxes, penalty and interest.
RECOMMENDATION: That City Council pass on first reading on May 5, and schedule for public hearing, second reading and final passage on May 14 an ordinance to change the amount of penalty applied to delinquent taxes within the first 15 days of delinquency.
BACKGROUND: During the FY 2017 budget development, the City Manager proposed a change to the penalty applied to delinquent real property taxes. Currently, a penalty is applied on any taxes that remain unpaid in whole or part one day after the tax due date. Real Estate taxes are due on June 15 and November 15 of each year. The current penalty is 10 percent of the amount that remains unpaid or $10, whichever is greater. The proposed amendment change would provide some leniency for delinquent taxes that are unpaid within the first 15 days by reducing the penalty from 10 percent to 5 percent. After 15 days, all unpaid taxes would be subject to a 10 percent penalty or $10, whichever is greater. Interest accrues at an annual rate of 10 percent for the first year and 5 percent for each year thereafter, beginning the day after the tax is due, and continues until all taxes, refuse fees and penalties are paid. The Code of Virginia does not allow for waiver of tax, penalty or interest due to inability to pay.
A large number of taxpayers who incur a penalty seek a "waiver" of the penalty from the Finance Director. By law, however, the D...
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