Personal Property Tax (Individual)

• Payment Due: June 25th & December 5th
• Late Payment Penalty of 10% or $10, whichever is greater on the unpaid balance on each assessed item
• Interest of 10% per year accrues every month until paid in full

Business Tangible Personal Property Tax, Machinery & Tools Tax

• Returns are due May 1st – If filing late, a late filing penalty of 10% of the tax levied on the return or $10, whichever is greater, will be added to return
• Payment Due: June 25th & December 5th
• Late Payment Penalty of 10% or $10, whichever is greater on the unpaid balance, in addition to any late filing fees applied
• Interest of 10% per year accrues every month until paid in full

Real Estate Property Tax

• Payment Due: June 25th & December 5th
• Late Payment Penalty of 10% or $10, whichever is greater on the unpaid balance on each assessed item
• Interest of 10% per year accrues every month until paid in full

Tax Relief for the Elderly & Disabled

• Renewal Due Date: April 1st – Individuals who have previously received the tax relief
• First Time Filers Due Date: October 31st
• Renewals or Applications received after the respective filing due dates are not accepted
• No Application fees or late filing penalties

Business License Tax

• For gross receipts of $25,000 or less, there is no fee or tax, however you must still file a Business License Application by March 1.
• For gross receipts greater than $25,000.00 and less than $100,000 a flat fee of fifty dollars ($50.00) is due with the license application on March 1.
• For gross receipts greater than $100,000 the payment is due June 15. 

Food & Beverage Tax

• Filing and payment due date: No later than the 20th of the following month
• Late filing penalty: 10%
• Late payment penalty: 10% for the first month and 5% penalty for each month there after, up to 25% until the balance is paid

Transient Occupancy Tax

• Filing and payment due date: No later than the 20th of the following month
• Late filing penalty: 10%
• Late payment penalty: 10% for the first month and 5% penalty for each month there after

Short Term Rental

• Payment Due Date: No later than the 20th of the month following the close of each calendar quarter
• Late Remittance Penalty: 10% or $10, whichever is greater
• Interest of 10% per year accrues every month until paid in full

Motor Vehicle Dealership Tax

• Payment Due Date: No later than the 20th of the month following the close of each calendar quarter
• Late Remittance Penalty: 10%
• Interest of 10% per year accrues every month until paid in full.

Public Service Tax

• Payment Due: June 25th & December 5th
• Late Payment Penalty of 10% or $10, whichever is greater on the unpaid balance on each assessed item
• Interest of 10% per year accrues every month until paid in full

The purpose of this policy is to establish when late penalties and interest must be applied to payments, filings, and excise tax remittances in accordance with Virginia Code and Albemarle County Code.

Policy
Late payment penalty is required by law for all untimely filing of taxes or payment of taxes by mail or otherwise (Code of Virginia §58.1-9 and §58.1-3916).

Late Filing Penalty and Interest
Failure to file a required return is subject to a penalty of ten percent (10%) of the tax levied on the return or $10.00, whichever is greater, not to exceed the amount of the tax assessable (Albemarle County Code §15-103 (C). Interest at the rate of ten percent (10%) per annum shall apply on all unpaid taxes and penalties commencing the first day of the month following the month in which such taxes are due and continuing until paid (Albemarle County Code §15-104).

Late Payment Penalty and Interest 
A late payment penalty of ten percent (10%) or $10.00, whichever is greater, is imposed on all taxes remaining unpaid after the due date; however, the penalty shall not exceed the amount assessable (Albemarle County Code §15-103 (A)). The penalty is imposed the day after the tax is due, and once it is imposed, it becomes part of the tax. Interest at the rate of ten percent (10%) per annum shall apply on all unpaid taxes and penalties commencing the first day of the month following the month in which such taxes are due and continuing until paid (Albemarle County Code §15-104).

Late Tax Remittance Penalty and Interest
Delinquent remittance of excise taxes on meals, lodging, or admissions collected from consumers, are subject to a penalty of (i) ten percent for the first month the taxes are past due, and five percent for each month thereafter, up to a maximum of 25 percent of the taxes collected but not remitted; or (ii) $10.00, whichever is greater, is imposed on all taxes remaining unpaid after the due date; provided, however, that the penalty shall in no case exceed the amount of the tax assessable. The penalty shall be imposed on the day after the tax is due and, once it is imposed, it becomes a part of the tax (Albemarle County Code §15-103 (B)). Interest at the rate of ten percent (10%) per annum shall apply on all unpaid taxes and penalties commencing the first day of the month following the month in which such taxes are due and continuing until paid (Albemarle County Code §15-104).

PENALTY AND INTEREST CAN BE WAIVED UNDER THE FOLLOWING CIRCUMSTANCES:
The County of Albemarle has adopted an alternate form of government that does not provide for the constitutional officers of Commissioner of Revenue and Treasurer. The Director of Finance performs the duties of the Commissioner and Treasurer.

Late filing and payment penalty and interest may be waived if the lateness was due to a medically determinable physical or mental impairment on the due date, provided payment is made within 30 days of the due date.

Penalty and interest may also be waived if the Commissioner abates the underlying tax or certifies that the taxpayer was not assessed in a timely manner due to a clerical error by the Commissioner’s staff or if the late payment was due solely to the fault of the Treasurer or Commissioner of Revenue.

The only exceptions to the postmark rule are: (1) if the Postmaster, in writing, admits that the Post Office received the payment on time but erroneously placed a late postmark on the envelope or was otherwise at fault for the late postmark (see resources for AG opinion). Any documentation, in either case, must be approved by the Treasurer for it to be determined that penalty does not apply.

PENALTY AND INTEREST CANNOT BE WAIVED UNDER THE FOLLOWING CIRCUMSTANCES:

• Because the taxpayer did not know the deadline or misread the deadline on the tax bill (see resources for AG opinion);
• Because the taxpayer did not receive a bill (see resources for AG opinion);
• Because the bill was mailed to the wrong address (see resources for AG opinion);
• Because the bill was incorrect (see resources for AG opinion);
• Because the taxpayer received erroneous information from County staff, whether in person or over the phone (see resources for AG opinion).
• Taxpayers have a duty to know due dates and to file and pay on time. If no bill is received that duty includes contacting the taxing authority prior to the due date and paying on time (see resources for AG opinion).

Delinquent Collections

We at Albemarle County honor our role as stewards of the public trust by managing our natural, human, and financial resources respectfully and responsibly.

It is always best to make payments ahead of time, but we understand that payments are occasionally made late. If you by chance become delinquent, please do not hesitate to contact the Revenue Administration at 434-296-5851 as soon as possible in order to do the following:

• Minimize penalty & interest
• Avoid additional collection fees resulting from the referral to a collection agency

Albemarle County Delinquent Collection has several enforcement and collection methods to aid in the collection of past due taxes, these methods include the methods detailed in the Enforcement and Collection Methods section below.

Delinquent Notices

A delinquent notice advises the taxpayer of the late payment penalty amount applied for non-payment and gives taxpayers another opportunity to make full payment.

Mailed out 14 days after each tax deadline to all taxpayers whose payment was not received by the deadline, but have not yet been submitted to the Collection Agency.

DMV Vehicle Registration Withholding Program (VRWP)

A DMV stop requires full payment of all delinquent taxes prior to renewing a state registration.

• For past due taxes, please allow 2 business days for your payment to reach our office or to remove a Vehicle Registration Hold (DMV Stop).
• DMV charges the County a $25 fee for each DMV Stop removed, which is then passed on to the taxpayer.

VRWP allows for localities to prevent the issuance, reissuance, or renewal of registrations (license plate decals) for all vehicle owned or co-owned by a taxpayer who owes delinquent taxes.

Tax Liens

A tax lien is an administrative remedy that does not require court action. Tax liens can be issued against a taxpayer's:

• Salary
• Bank Account
• Tenant
• Unclaimed Property
• Credit Card Company (Business)

Debt Set-Off (DSO) Program

DSO program enables the Department of Taxation to reduce or withhold someone’s eligible income tax refund or lottery winnings by the amount of the individuals local tax debt.

The Department of Taxation charges 4% of the amount withheld to cover the administrative costs associated with administering the program. Albemarle County charges a fee of $25 for the same purpose.

Albemarle County’s Tax Revenue Administration division submits all delinquent accounts to the Department of Taxation on November 1st of every year. Once a taxpayer(s) files their state tax return, the Department of Taxation notifies the County of the amount to be refunded. The Department of Taxation verifies there is still an outstanding debt with the County. Once outstanding debt verified the funds are disbursed by the Department of Taxation.

The County employs a private collection agency to assist with the collection of any local taxes that remain delinquent for a period of 3 months or more. Accounts forwarded to the collection agency are assessed an additional 20% fee of the amount collected, added to the taxpayers balance.

Albemarle County currently uses the collection agency below.

Taxing Authority Consulting Services, PC (TACS)
General Collections: 866-820-5450
Website: www.taxva.com

Real Estate parcels are eligible for judicial sale when taxes are delinquent on December 31st following the second anniversary of the tax due date. The real estate may be sold for the purpose of collecting all delinquent taxes.

Depending on the property, the judicial sale process can take up to approximately 18 months. The owner of the property can redeem the property at any time during the process prior to the sale by paying all taxes, penalties, interest and attorney’s fees and costs.

• List of properties and terms of sale

Albemarle County currently outsources the tax sale process to the firm below.

Martin Wren, PC
Phone: 434-817-3100
Website: www.martinwrenlaw.com

The county may file suit to collect delinquent balances, an obtain a judgement rendered against the debtor and recorded against the debtor’s credit.