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Tax Enforcement - Delinquent Tax Collections
Tax Enforcement - Delinquent Tax Collections
The duty of the Tax Enforcement team in the Tax Administration Division of the Finance Department is to provide prompt collection service to the County while maintaining excellent customer service to taxpayers.
The Collections staff are responsible for the collection of revenue past due to Prince William County for taxes, fees, fines, and other services, pursuant to Code of Virginia §58.1-3919.
The Tax Administration Division encourages making payments by the due date to avoid incurring late penalties for untimely payments. Our taxpayer online portal allows online access to tax accounts to set up prepayment plans to make multiple payments towards the amount due once the bill has been received or to pay in full by the due date. By making payments and paying in full by the due date taxpayers will minimize or avoid incurring penalties and interest that will accrue each month on a delinquent balance.
Delinquent Taxes
All taxes are considered delinquent the day following the tax due date. Tax due dates can be found on the County tax calendar.
- A 10% penalty is applied the day following the tax due date on any unpaid tax balance.
- Interest will accrue beginning on the first day of each month following the month in which taxes are due at a rate of 10% per annum.
- Delinquent Notices are mailed approximately two weeks after the original due date to real estate and personal property owners. This notifies the owner of a date when, if not paid, DMV registration withholding (DMV Stop), Debt Set-Off, and fees for collection and actions will be applied.
- A $30 collection/administration fee, and $25 DMV Stop fee, in addition to the 10% penalty and monthly interest, are added to accounts not paid in full by the given due date on the Delinquent Notice.
- A DMV Stop Notice is mailed after the DMV registration withholding (DMV Stop) has been applied on personal property accounts, and the stop will only be removed after all taxes on all vehicles owned by the taxpayer are paid in full.
ENFORCEMENT ACTIONS:
VEHICLE REGISTRATION WITHHOLDING (DMV STOP)
Pursuant to Virginia Code § 46.2-752(J), the DMV Stop prevents taxpayers from renewing, adding, or changing vehicle registrations with DMV until the taxes are paid in full. When paid, the DMV Stop is lifted, and taxpayers may contact Taxpayer Services to ensure that the DMV Stop has been removed so registration renewal can take place.
FINAL NOTICE
Final Notices are mailed 90 days or more after the original due date and after an enforcement case is created and assigned to the Tax Enforcement team. This notifies the owner that increased enforcement efforts, such as bank liens, wage liens, third-party liens, distress warrants, and other lawful collection tools may proceed after 15 days without further notification to the taxpayer.
TAX LIENS - WAGE LIENS and BANK LIENS
Tax Liens are authorized in the Code of Virginia (See Va. Code § 58.1-3952) when the Taxpayer has not responded to the Final Notice or satisfied the delinquent tax balance. Tax liens include wage liens, bank liens, and other third-party liens. Wage liens are issued against the employment wages of delinquent taxpayers for withholding of 100% of net wages until the total of delinquent taxes has been paid over to the County. Bank liens are issued against the taxpayer’s bank, also withholding 100% of funds available in a 30-day period up to the total of delinquent taxes owed. Third-Party liens are issued to receive tax funds owed by a Taxpayer who is in line to receive funds from (1) a tenant of taxpayer-owned rental property, from (2) a title company or closing company handling the taxpayer’s real estate transaction (sale or refinancing) prior to funds being disbursed, or from (3) a third-party (business/agency/vendor) with whom the Taxpayer does business and is owed for his products or services. When paid in full either by the third party or the Taxpayer, these liens are promptly released.
PAYMENT ARRANGEMENTS
A Payment Plan is optional for (1) Prepayment Plan the Taxpayer can set up through a portal for payment in full by an upcoming due date; or (2) Delinquent Payment Plan set up by a collector that may include one or more delinquent accounts. It cannot include a mixture of past-due and not-yet-due account balances. All payment plans must be kept current and bring the balance out of delinquency prior to the next due date. Actions such as DMV Stop and Debt Set-Off Claims remain active and will be released only when the delinquent balance is paid in full. Taxpayers must pay upcoming (future) bills when due and in addition to the payments due under any payment plan. Any defaulted payment results in a canceled payment plan, and enforcement actions will proceed.
DISTRESS WARRANTS
Code of Virginia §58.1-3919 and §58.1-3941authorize the locality to issue a Distress Warrant to “distrain” (or seize) vehicles, equipment, furnishings, or tangible assets owned by a Taxpayer or Taxpayer Business until (1) the Taxpayer/Owner pays the delinquent taxes in full, or (2) to proceed with Sheriff Sale at auction of those assets to satisfy the delinquent tax balance. Once “tagged” by the Sheriff, the assets cannot be moved, sold, or hidden from sale. The sale or auction can be cancelled up until the date and time of sale if full payment by certified funds is received by the County.
ADMINISTRATIVE SUMMONS
Pursuant to Va. Code § 58.1-3110, an Administrative Summons may be issued via the Tax Enforcement Division whereby a delinquent taxpayer, representative or employee of a delinquent business taxpayer, tenant of taxpayer properties, or anyone with knowledge regarding a delinquent account/taxpayer assets is summoned to appear in the Tax Administration Office (1) to answer questions propounded by a Tax Enforcement Manager, and (2) to produce documentation requested in the Summons, such as income tax returns, bank statements, accounts receivable, asset lists, real estate deeds, or other documents substantiating the customer’s financial information. Such information gathered can be used in further collection efforts, such as liens, demand for payment by officer/owner if property is transferred and not a bona fide sale, or a vendor lien on accounts receivable.
DEBT SET-OFF (DSO) COLLECTION
Debt Set-Off is a program connected with the Department of Taxation, Commonwealth of Virginia, which allows for funds to be held from either the State Income Tax Return refund or from Virginia lottery winnings on behalf of State and Local Government agencies. Va. Code §§ 58.1-520 through 58.1-535, and §§ 58.1-4000 through 58.1-4029.
New requests/claims are submitted annually to the State and can be drawn from any State tax refund or lottery winnings available to the taxpayer that calendar year. The state charges a 4% administrative fee on each claim, and Prince William County will add an additional $25.00 Debt Set-Off Fee at the time a DSO claim is finalized. The State deducts their fee prior to sending the payment to the County.
JUDGMENTS
When efforts to collect a delinquent personal property or business tax account have been exhausted, or a taxpayer has moved away from the County without paying delinquent taxes, the judgment process will ensue. The collector will conduct research to gather and confirm the best information and documentation available, then refer the account to the Tax Enforcement Manager or designated staff for judgment action to begin. Our County Attorney’s Office will initiate a legal action (Warrant in Debt in General District Court, or Complaint in Circuit Court) for entry of judgment through the County Court system. After the Taxpayer is properly served and the Court hearing held on the scheduled return date, judgment may be entered by the Court for the tax balance plus costs, attorney fees, penalty, and ongoing interest. The General District Court judgment is recorded in Circuit Court and becomes a recorded lien against the Taxpayer until released when paid in full. Notice of Satisfaction or Release of Lien are filed with the Court to remove the lien.
JUDICIAL TAX SALES (of Real Estate)
Virginia Code § 58.1-3965 sets forth that a locality is permitted to sell property assessed with real property taxes that remain delinquent on December 31 following the second anniversary date on which such taxes became due.
Property on which there is a condemned structure, any nuisance as defined by Va. Code § 15.2-900, any derelict building as defined in § 15.2-907.1, and any property that has been declared blighted as defined in § 36-49.1:1 may be sold by using this process following the first anniversary date on which such taxes became due. Upon a finding by the Court, any property that has an assessed value of $100,000 or less and has real estate taxes that remain delinquent on December 31 following the first anniversary of the tax due date shall also be deemed subject to sale by public auction.
A responsible officer of a corporation, partnership, or limited liability company who willfully fails to pay any corporate real estate taxes may be held personally liable for the delinquent tax balance.
The County contracts with an outside attorney to conduct its judicial sales. Judicial Tax Sale of real estate properties with delinquent taxes exceeding the December 31 second anniversary of delinquency will be issued a Judicial Tax Sale Notice allowing 30 days in which to pay in full or make acceptable payment arrangements to pay in full and “redeem” the property back to non-delinquent status. Following that 30-day period, the accounts/properties will be handed over to Taxing Authority Consulting Services (TACS) to initiate the Tax Sale process, a legal course of action process with additional notification to all parties and “parties unknown”, followed by an eventual auction to sell the properties. There will be added costs for attorney fees, title search, advertising, service, notices, and other fees added to the total due from Taxpayer or buyer at auction before the matter is redeemed or released.
Most questions can be answered using the Frequently Asked Questions Booklet.
For more information, contact Taxing Authority Consulting Services (TACS) at: https://taxva.com/real-estate-tax-sales/
Office hours: 8:30 am – 6:30 pm Monday through Friday (except holidays)
General Collections: (804) 545-2500 or (703) 880-1078
Court Fine Collections: (804) 259-1234
Collections Fax: (804) 440-1171Bankruptcy: (804) 649-2445
Bankruptcy Fax: (804) 378-2681Mailing Address: Post Office Box 31800, Henrico, Virginia 23294
Email: [email protected]
