In the last three years, Waynesboro has lost out on more than $4.6 million in revenue from uncollected personal property taxes, and had the city imposed a late filing fee, could have collected an additional $207,000 to $635,000, according to data from city Commissioner of Revenue Don Coffey.
“That’s pretty staggering,” said Councilwoman Lorie Smith. “They’re huge numbers.”
The city now fails to collect 20 percent to 37 percent of the personal property taxes, mostly from vehicles registered in the city. Coffey also tallied late and non-filers of mobile home, business equipment and machinery and tools property taxes. Waynesboro does not currently charge a late filing fee.
As a result, Coffey wants to impose late fees similar to those in Harrisonburg and Rockingham and Augusta counties. Coffey will brief the council on the proposal tonight.
Harrisonburg collects a 10 percent late fee, with a minimum of $10. Both Rockingham and Augusta counties charge a 10 percent late fee, or $10, whichever is less.
If Waynesboro had charged a 10 percent late filing fee, it could have collected $635,598 over the last three years. A $10 late fee could have brought in $207,300.
In a memo to City Manager Mike Hamp, Coffey says late or non-filers impose an additional burden on staff to collect the tax.
“The objective of a late filing penalty is to bring the taxpayer into compliance, not to create a source of revenue,” Coffey wrote.
For the last three years, the city has failed to collect tax revenue on 28 percent of the motor vehicles registered in the city, with 7 to 8 percent of property owners filing late.
Smith said imposing a penalty on late or non-filers “is entirely appropriate” and could make a significant difference in the general fund. She said she wants to know what collection measures are in place.
“We’ve got to create a system to get in there and collect that money,” Smith said.
Hamp has recommended that the City Council set a public hearing on the subject Feb. 9.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement