City of Fairfax, Virginia City Council Regular Meeting

Transcription

1 City of Fairfax, Virginia City Council Regular Meeting Agenda Item # 7a City Council Meeting 3/24/2015 TO: Honorable Mayor and Members of City Council FROM: SUBJECT: Robert Sisson, City Manager Receive list of delinquent taxes from the City Treasurer in compliance with State Code Section , write off taxes in compliance with State Code Section and consideration to publish the list of delinquent taxes. ISSUE(S): 1. List of delinquent personal property and real estate taxes submitted in compliance with Virginia Code Section ; 2. Publication of delinquent tax lists provided in Virginia code Section ; 3. Write-off of 2009 personal property and business license taxes in compliance with Virginia Code Section SUMMARY: Last year, the Council elected not to publish the list of delinquent personal property taxes and delinquent real estate taxes in a local newspaper. However, delinquencies were and are published on the Treasurer s page of the City s web site. Write Off of uncollectable personal property and business license taxes is a yearly process. FISCAL IMPACT: The Code of Virginia, Section , states that local taxes are enforceable for five years. Outstanding/receivable personal property tax and business license tax for tax year 2009 is no longer collectible and will be written off. The Treasurer has pursued collection of these receivables for five years and the collectability of the remaining receivables is minimal. The write-off removes all 2009 receivables from the general ledger. RECOMMENDATION: ALTERNATIVE COURSE OF ACTION: RESPONSIBLE STAFF/ POC: COORDINATION: ATTACHMENTS: I recommend that the balances recommended for write off by the Treasurer s office be accepted and authorized for write off. I recommend that we continue publishing the list of delinquent personal property and real estate taxpayers with appropriate balances to the City s website. Additionally I recommend that we start publishing delinquent business license, bank franchise and meals tax taxpayers with appropriate balances to the City s website. Treasurer Commissioner of Revenue, Director of Finance Memorandums from the Treasurer, Sample motion

2 March 12, 2015 TO: Honorable Mayor and Members of the City Council FROM: Tom Scibilia, City Treasurer SUBJECT: Delinquent Personal Property Taxes Attached is a copy of delinquent personal property taxes submitted in compliance with the Code of Virginia, Title The list represents 2010, 2011, 2012 and 2013 outstanding personal property taxes as of June 30, The tax lists have been updated and reflect the balances through January 31, Title gives the Council the option of publishing the list. In prior years, the Council has elected not to publish a list of personal property accounts. The cost to publish accounts over $100 is $850. The cost to publish the list is not an expense item in my budget. If I can provide any additional information, please let me know. I, Tom Scibilia, Treasurer of the City of Fairfax, do swear that the foregoing list is, I verily believe, correct and just, that I have not received full payment of the taxes for which the personal property therein mentioned is returned delinquent, although I have used due diligence to collect such taxes. Tom Scibilia Treasurer, City of Fairfax

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62 March 12, 2015 TO: Honorable Mayor and Members of the City Council FROM: Tom Scibilia, City Treasurer SUBJECT: Write-Off of 2009 Delinquent Personal Property and Business License Taxes Virginia Code Section states that the collection of local taxes can only be enforced for five years. I can no longer actively pursue the collection of personal property and business license taxes for the tax year The collection rate for the 2009 personal property tax is 99.00%. Currently I use the following procedures in collecting personal property taxes: mail original bill September 1, second notice by the end of November, final notice in January and delinquent collection activity starting in February. Delinquent collection activity consists of telephone calls, seizing wages, bank accounts or vehicles, placing DMV holds, referring accounts to a collection agency and submitting the list to the State of Virginia for inclusion in the Set-Off Debt Program. There are several factors inherent in our personal property collection system that contribute to delinquent taxes: (1) timing - taxes are assessed as of January 1, taxes are due October 5; (2) the transient nature of our area and (3) businesses fail with little or no assets available. Of these factors, the move-out situation is the principal factor in uncollected taxes. For each delinquent billing we send out, we receive 10 percent back from the post office as undeliverable. As we move farther away from the tax year, the undeliverable return mail increases. Every piece of returned mail is researched through various sources available in an attempt to pursue collection. The write-off removes the 2009 personal property tax receivables from the general ledger.

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75 March 12, 2015 TO: FROM: Honorable Mayor and Members of City Council Tom Scibilia, City Treasurer SUBJECT: List of Taxes Less than $20.00 for real Estate and $10.00 for Personal Property Attached is a list of real estate and personal property taxes amounting to less than $20.00 for real estate and $10.00 for personal property for which no bills were sent. The list is submitted in compliance with Virginia Code Section

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86 March 12, 2015 TO: FROM: Honorable Mayor and Members of City Council Tom Scibilia, City Treasurer SUBJECT: Delinquent Real Estate Taxes Attached is a copy of delinquent real estate taxes through calendar year 2012 submitted in compliance with the Code of Virginia, The list represents outstanding taxes as of June 30, 2014, adjusted for payments received through January 31, Title gives the council the option of publishing the list in a local newspaper. For previous years, the Council has elected not to publish the delinquent real estate list. The cost to publish the list in a local newspaper is approximately $ The funds are not an expense item in my budget. If I can provide any further information, please let me know. I, Tom Scibilia, Treasurer of the City of Fairfax, do swear that the foregoing list is, I verily believe, correct and just, that I have not received full payment of the taxes for which the real estate therein mentioned is returned delinquent, although I have used due diligence to collect such taxes. Tom Scibilia Treasurer, City of Fairfax

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89 SAMPLE MOTION I MOVE THAT THE CITY COUNCIL RECEIVE THE LIST OF DELINQUENT TAXES FROM THE CITY TREASURER IN COMPLIANCE WITH STATE CODE SECTION , WRITE OFF TAXES IN COMPLIANCE WITH STATE CODE SECTION AND PUBLISH THE LIST OF DELINQUENT TAXES ON THE CITY WEBSITE.