News Flash Home
The original item was published from 4/12/2013 10:19:06 AM to 5/13/2013 12:05:01 AM.

News Flash

Danville, VA Local Government News and Announcements

Posted on: April 12, 2013

[ARCHIVED] Danville’s aggressive pursuit of delinquent taxes pays off

The city of Danville’s effort to ramp up its pursuit of delinquent real estate taxes has yielded marked success. In four months, the city has recovered more than half a million dollars that had eluded collection.

Now, the city hopes to duplicate that success as it prepares to chase delinquent personal property taxes and utility charges.

“In the next phase of delinquent collection efforts, we will assign personal property tax accounts and utility charges to the same law firm that has been helping us collect real estate taxes,” City Finance Director Barbara Dameron said Friday. “Consequently, all citizens should promptly pay all delinquencies to avoid adverse collection action and the imposition of additional collection fees and costs.”

The law firm, Taxing Authority Consulting Services, P.C. (TACS), specializes in government collections and represents finance departments, treasurers and tax collectors throughout Virginia. The city contracted with the firm in November.

Since then, TACS has collected more than $550,000 in a four-month period. In comparison, collections totaled $757,900 by a previous agent over a three-year period.

A change in approach, Dameron said, accounts for a significant portion of the increase in collections. With the previous agent, the city did not turn over accounts for collection until they were delinquent for two years.

Under the new process, as soon as an account is legally delinquent, the city notifies the taxpayer of the delinquent amount. Payment is required within 30 days. If the debt remains unpaid, the city submits the account to TACS for collection.

TACS adds a 20 percent fee to the delinquent accounts. The firm may add other costs incurred in collection efforts to the delinquent accounts.

“Delinquent taxpayers are responsible for the additional fees and costs, so there is absolutely no cost to the city,” Dameron said.

In collecting these accounts, Dameron said TACS and the city’s Finance Department may pursue all means of collection authorized by law, including the attachment of wages or other assets.

When real estate taxes remain unpaid for two years or more, TACS can commence proceedings to sell the property. Once an action to sell the property has commenced, the property owner is liable for all costs and attorney’s fees incurred in addition to the tax, penalty and interest assessed on the property.

The city anticipates TACS will publish an initial advertisement of properties subject to sale within the next month.

As a matter of policy, the city does not enter into agreements or “payment plans” for the collection of delinquent taxes. The city does permit TACS to make pay arrangements within specific parameters. Delinquent taxpayers who owe $1,500 or more may enter into payment plans requiring a 25 percent down payment and payments spread over 12 to 18 months.

As part of the agreement, the taxpayer must keep their current taxes paid.

Delinquent taxpayers owing less than $1,500 may be eligible for similar payment plans with payments spread over three months.

In addition, delinquent taxpayers may make payments on their account at any time, with or without an agreement. However, once the account has been released to TACS for collection, the taxpayer is responsible for the collection fee and cost incurred in the collection effort.

Facebook Twitter Email

Other News in Danville, VA Local Government News and Announcements

Project Imagine ceremony group photo

Project Imagine honors seven graduates

Posted on: September 25, 2023

Installation of pavement markings scheduled

Posted on: September 22, 2023

Casino generates $19.6 million in August

Posted on: September 21, 2023

City awards grants to 29 small businesses

Posted on: September 20, 2023
Fall 2023 IDDU Graduation

Police Department honors IDDU graduates

Posted on: September 19, 2023
VACP Valor Award

Five officers receive VACP Valor Award

Posted on: September 13, 2023

City receives grant for Oak Hill cemetery

Posted on: September 12, 2023
Chris Wiles

City manager names interim police chief

Posted on: September 12, 2023

Regional housing summit registration opens

Posted on: September 12, 2023
Mayor delivers keynote address.

Mayor speaks at 9/11 commemoration

Posted on: September 11, 2023

City to hold ceremony at Oak Hill cemetery

Posted on: September 7, 2023

Project Imagine partners with CIS program

Posted on: September 6, 2023

Life Saving Crew to host 9/11 ceremony

Posted on: August 28, 2023
map - Memorial Drive resurfacing

Memorial Drive resurfacing scheduled

Posted on: August 28, 2023

Health data published through dashboard

Posted on: August 23, 2023

Housing Extravaganza set for Saturday

Posted on: August 23, 2023
Curtis Artis, Shakeva Frazier

Project Imagine staff members honored

Posted on: August 17, 2023
K.N. Kuper

First female added to Police SWAT team

Posted on: August 14, 2023