City of Alexandria, Virginia
________________
MEMORANDUM
DATE: MARCH 26, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Increase the Late Payment Penalty on Personal Property Taxes from 10% if Paid No More Than 30 Days Late, up to 25% if Paid More than 30 days Past the Due Date.
BODY
___________________________________________________________________________
ISSUE: Consideration of an ordinance to raise the late payment penalty on Personal Property Taxes to the maximum allowed by Virginia law.
RECOMMENDATION: That City Council consider the proposed ordinance (Attachment 2) on first reading and set it for second reading and public hearing on April 13, 2024, and final passage on May 1, 2024, with budget adoption.
DISCUSSION: Included in the FY 2025 Proposed Budget is the plan to increase the late payment penalty on Personal Property Tax to the maximum allowed by State law. Section 58.1-3916 of the Code of Virginia mandates that the late payment penalty on Personal Property taxes shall not exceed 10% or $10, whichever is greater; except, in cases where the Personal Property Tax is more than 30 days late, the late payment penalty may be increased by 15%, for a total late payment penalty of 25%. The City's current ordinance presently caps the penalty at 10% regardless of how many days the payment is past due. This proposal is to amend the ordinance to adopt the additional 15% on Personal Property taxes more than 30 days delinquent.
Making full use of allowed penalties helps strengthen tax collection tools and maximizes revenue in order to help fund all Council priorities. Ensuring everyone pays their fair share of taxes is a tenet of good government. At the same time, the Department of Finance will broadly communicate the penalty increase in ...
Click here for full text