AGENDA DATE: 1/4/2017
TITLE:
Title
Tax Collection Policies and Procedures
BODY
SUBJECT/PROPOSAL/REQUEST: Review of the Finance Department's Tax Assessment and Collection Policies and Procedures
ITEM TYPE: Regular Information Item
STAFF CONTACT(S): Foley, Letteri, Kamptner, Herrick, Burrell, Lamb
PRESENTER (S): Betty Burrell
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: During the past couple of years and in accordance with prior board direction, the Finance Department has increased its efforts to improve the overall percentage of tax collection. A number of initiatives, previously discussed with the board, include stepped up audit procedures, verification and cross checking with IRS records, and the engagement of outside collection agencies. These efforts have increased the county's overall success in collecting all taxes due. While consistent with Virginia and County codes, more aggressive collection practices have also caused some taxpayers to question the fairness and flexibility of the county's collection polices resulting in citizen inquires and complaints to board members. The purpose of this executive summary is to outline recent efforts to improve tax collections, especially as related to unpaid business license taxes and fees; to provide information related to the county's limited discretion to deviate from the State's uniform business license ordinance; and to discuss existing and possible future improvements in procedures and communications to help inform the public and mitigate citizen complaints. The following is a brief history of recent enhanced collection efforts:
Business Personal Property Tax Reporting
Prior to January 2014 The Finance Department's Business Tax Division previously allowed businesses to omit items with an original cost of $250 from their business personal property (BPP) tax returns. Once the Finance Director determined in 2013 that there was no enabling authority for this practice in eith...
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