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 on any unpaid tax balance is applied the day following the tax due date.
• Interest will start accumulating on the first day of each month after the month in which taxes are due, at a rate of 10% per annum, until the account is paid in full.
• Delinquent Notices are mailed to real estate and personal property owners approximately two weeks after the original due date. 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 is 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.

 

VEHICLE REGISTRATION WITHHOLDING (DMV STOP)

Under Virginia Code § 46.2‑752(J), a DMV Stop prevents a taxpayer from renewing, adding, or making changes to any vehicle registration until all outstanding taxes are fully paid.
Once the taxes are paid in full, the DMV Stop will be removed. Taxpayers may contact Taxpayer Services to confirm that the stop has been lifted.

FINAL NOTICE

A Final Notice is sent at least 90 days after the original due date, once an enforcement case has been opened and assigned to the Tax Enforcement team.
This notice informs the taxpayer that stronger collection actions—such as bank liens, wage liens, third‑party liens, distress warrants, and other legal collection methods—may begin after 15 days. No additional warning will be sent before these actions proceed.

TAX LIENS - WAGE LIENS and BANK LIENS 

Tax Liens are allowed under the Code of Virginia (Va. Code § 58.1‑3952) when a taxpayer does not respond to the Final Notice or pay their delinquent taxes. There are several types of tax liens, including wage liens, bank liens, and other third‑party liens.

• Wage Liens: These are placed on a taxpayer’s employment income and require the employer to send 100% of the taxpayer’s net wages to the County until the delinquent taxes are fully paid.

• Bank Liens: These are issued to the taxpayer’s bank. The bank must hold and send up to 100% of the available funds within a 30‑day period, up to the amount of taxes owed.

• Third-Party Liens: These collect funds owed to the taxpayer by others.

This may include:

• Rent payments from a tenant of a taxpayer‑owned property,
• Proceeds handled by a title or closing company during a real estate sale or refinance, before funds are disbursed, or
• Payments from a business, agency, or vendor that owes the taxpayer money.

All liens are released promptly upon payment of the full delinquent balance, whether by the taxpayer or the third party involved.

PAYMENT ARRANGEMENTS 

A Payment Plan is an optional arrangement that can be set up in one of two ways:

• A Prepayment Plan, which allows you to pay an upcoming bill in full through our online portal before the due date.
• A Delinquent Payment Plan, created by a collector, which can include one or more past-due accounts.

Please note that a single payment plan cannot include both current and past‑due balances. Interest will continue to accrue on any unpaid amounts. Any DMV Stops or Debt Set-Off Claims will remain in place until all delinquent balances are paid in full.

You must also continue to pay any new bills by their regular due dates, in addition to making your payment plan installments. If a scheduled payment is missed, the payment plan will be canceled, and normal collection actions will resume.

DISTRESS WARRANTS
Under Virginia Code §§ 58.1‑3919 and 58.1‑3941, the County may issue a Distress Warrant to seize (or “distrain”) a taxpayer’s vehicles, equipment, furnishings, or other tangible property. This action is taken when taxes remain unpaid.

The property will remain seized until one of the following happens:

• The taxpayer pays all delinquent taxes in full, or
• The County proceeds with a Sheriff’s Sale, where the seized items are auctioned to cover the tax debt.

Once the Sheriff “tags” the property, it cannot be moved, sold, or hidden.
The auction can be canceled at any time before the sale date and time if the County receives full payment by certified funds.

ADMINISTRATIVE SUMMONS
Under Virginia Code § 58.1‑3110, the Tax Enforcement Division may issue an Administrative Summons. This requires a delinquent taxpayer, or someone with relevant knowledge, such as a business representative, employee, or tenant of the taxpayer, to appear at the Tax Administration Office.

The person summoned must:

• Answer questions from a Tax Enforcement Manager, and
• Provide the documents listed in the Summons. These may include income tax returns, bank statements, accounts receivable records, asset lists, real estate deeds, or other financial information.

The information collected may be used in future collection actions, such as issuing liens, demanding payment from an officer or owner when property transfers are not bona fide sales or placing a vendor lien on accounts receivable.

DEBT SET-OFF (DSO) COLLECTION

Debt Set-Off is a program run by the Virginia Department of Taxation that allows state and local government agencies to collect unpaid debts by withholding money from a taxpayer’s Virginia State Income Tax refund or Virginia Lottery winnings. This program is authorized under Virginia Code §58.1-520 through §58.1-535 and §58.1-4000 through §58.1‑4029.

Each year, new DSO claims are submitted to the State. If the taxpayer receives a state tax refund or lottery winnings at any time during that calendar year, those funds may be used to pay the debt.

The State charges a 4% administrative fee for each claim. Prince William County also adds a $25 Debt Set-Off fee when the claim is finalized. The State deducts its fee before sending the remaining payment to the County.

JUDGMENTS
When all efforts to collect a delinquent personal property tax or business tax have been exhausted, or when a taxpayer has moved out of the County without paying, the judgment process begins.

The collector reviews and confirms all available information and documentation on the account. The case is then referred to the Tax Enforcement Manager or designated staff to start the judgment process.

The County Attorney’s Office will file a legal action (a Warrant in Debt in General District Court or a Complaint in Circuit Court) to obtain a judgment through the County court system. After the taxpayer is properly served and the court hearing takes place, the court may issue a judgment for the unpaid tax balance, along with court costs, attorney’s fees, penalties, and continuing interest.

A General District Court judgment is recorded in Circuit Court, creating a lien against the taxpayer. This lien remains in place until the debt is fully paid. Once paid, a Notice of Satisfaction or Release of Lien is 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) 440-1171

Bankruptcy: (804) 649-2445
Bankruptcy Fax: (804) 378-2681

Mailing Address:

Post Office Box 31800, Henrico, Virginia 23294

Email: [email protected]