WORK SESSION REQUEST
Winkelmann, Vice-Chairman, Center District
Board of Supervisors
Person Making Request
Wheeler, Deputy County Administrator
Discussion of Authority to Waive a Portion of the Current
Delinquent Tax Penalty Provision Relating to the Personal Property Tax
Relief Act (PPTRA)
At present, Fauquier County assesses a 10% penalty on delinquent personal property taxes based upon 100% of the amount of the total tax due as of the first day of delinquency. Personal property taxes are due October 5th of each year, or the first business day thereafter. With the advent of PPTRA, the State government has assumed payment responsibility for a portion of the personal property taxes owed by qualified residential taxpayers. The current PPTRA amount is 70% of the tax on the first $20,000 of assessed value for each qualifying account.
Having ascertained the absence of County statutory
authority as described above, the
The purpose of this work session is to review the Treasurerís authority for waiver of penalty and to discuss whether or not the County wishes to seek legislative authority from the Virginia General Assembly in order to change its penalty provisions to apply the 10% penalty to only the portion of the PPTRA-eligible bill which is the responsibility of the local taxpayer, rather than the full 100% of the bill.
Should the County wish to pursue enabling
legislation, an option to consider is to delay the effective date of the
penalty on the PPTRA reimbursement eligible portion of the bill until
November 15th. This
would allow the Treasurer the necessary time to complete the County's
initial PPTRA reimbursement request to the State by early December in
keeping with past practice and strikes a reasonable balance between the
spirit of the Personal Property Tax Relief Act, i.e. tax reduction, and
the County's legitimate need to charge penalty and interest on delinquent
accounts to insure timely collection of taxes.
BRIGHT and Associates, the County's financial system vendor, has estimated the required program changes would cost approximately $4,600. Analysis of the current year collection and penalty data indicates that had the above option been in effect in 2002, personal property delinquent tax penalty collection revenue would have been reduced by approximately $65,500. The impact of this option in future years will be impacted by the State PPTRA reimbursement rates and value limits and the growth in the number and average assessed value of PPTRA-eligible vehicles housed in county.
Requested Action of the Board of Supervisors
Hold a work
Identify Any Other Departments, Organizations or
Individuals That Would be Affected by This Request