Arlington County is looking to crack down on long-term tax scofflaws, despite recently recording an all-time low overall in its tax delinquency rate.
County board members on Saturday voted to hold a public hearing next month to discuss amending the county code so that the 10 percent annual interest rate charged on delinquent taxes and debts could be collected retroactively from the date of delinquency.
In April 2009, county board members increased the penalty interest rate from 1 percent for delinquent real estate taxes and 5 percent for other taxes and debts to 10 percent across the board, effective July 1, 2009. The proposed change to the county code would allow the 10 percent per annum rate to begin to accrue from the due date of the delinquent tax or other debt, rather than the July 1 date.
“It’s very important in this area to be clear, fair and reasonable” when it comes to taxpayers, said board Chairman Barbara Favola.
The proposed change to how penalty interest rates are applied would generate an additional $300,000 to $400,000 in fiscal 2010, according to county estimates.
Still, the overall tax delinquency rate was 0.7 percent in the county as of June 30, said Carla de la Pava, chief deputy treasurer for the county. The rate is “an all-time low, and the lowest in Virginia,” she said.
But de la Pava added that a considerable effort would be required to maintain the low rate, as some accounts are proving to be “extremely challenging.”
“Monument Realty is a monumental problem,” she said, noting that the company owes over $325,000. She said that would probably double in years to come.
She also urged residents struggling to make their payments to call the county’s taxpayer assistance program at 703-228-4000.
“We will work with you to keep you from becoming delinquent,” she said.
Vehicle personal property taxes and the second half of the county’s real estate tax are due Oct. 5.
