Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, June 14, 1993 TAG: 9306140229
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
In the past year, the city collected about $2,000 from lottery winners who had unpaid tax bills.
No, the winners did not voluntarily pay their bills. The state deducted the money for the taxes from lottery proceeds before giving the rest to the winners.
Most of the lottery players had won small amounts, but it was enough in some cases to cover their unpaid taxes.
The deduction is part of a system whereby localities can file unpaid taxes with the state and collect the amount from lottery winnings, state income-tax refunds or other state funds earmarked for delinquent taxpayers.
Roanoke collects about $85,000 a year in unpaid taxes by using this system.
Because of tight finances and the desire to make all taxpayers pay their fair share, city officials have stepped up their efforts recently to collect delinquent taxes.
In hard times, more tax bills go unpaid. When the economy worsens, the amount of delinquent taxes increases.
The city's tax collectors are working with longer lists of unpaid bills now.
They are collecting about $1.5 million a year in overdue real estate and personal property taxes, business licenses, sewer and water bills and other charges.
"It has increased in the past couple of years. We've noticed it more in real estate taxes," said Debbie Moses, chief of billings and collections.
When property owners are caught in a financial squeeze, they apparently put off paying their real estate tax because it isn't as urgent as other tax bills.
Property owners can't get a city decal for their motor vehicle unless they pay their personal property taxes. If they fail to pay their sewer and water bills, the city will cut off service.
Real estate taxes account for more than 60 percent of the city's delinquent bills.
City officials leave almost no stone unturned in trying to collect unpaid charges - even for small items such as library books that have not been returned. They have collected payment for books from state income-tax refunds.
The city collects about $1 million a year in delinquent real estate taxes. The amount may seem large, but Acting Finance Director James Grisso said it represents only 3 percent of the real estate levy of $35 million.
"Our collection rate is about 97 [percent] or 98 percent or even higher in some years," Grisso said. "We have good collections, but we go after those who don't pay."
At the end of each tax year, the city treasurer's office turns unpaid real estate and personal property taxes over to the billings and collections office.
Moses has three full-time collectors assigned to collect unpaid taxes, including overdue sewer and water bills.
The collectors send a series of letters and notices to taxpayers seeking payment. They also go to court to seek judgments and garnishee the wages of taxpayers in some cases.
The city also can force the sale of real estate to collect taxes if they are delinquent for more than three years. In recent years, more than a dozen pieces of property have been sold to collect overdue taxes.
"Our philosophy is to work the bigger accounts first," Moses said, but she added that doesn't mean they ignore small bills.
"We try to be fair, but firm," she said.
The city prefers that delinquent taxpayers pay their bills in full immediately, Moses said, but her office does work with taxpayers in some cases to pay in installments.
More taxpayers have requested installment payments in the past two or three years, citing economic conditions, she said.
Moses said unpaid sewer and water bills are the hardest to collect, because it often is difficult to track down the people who owe the money.
"Sometimes the people vacate houses or apartments and leave town," she said. "There is no way to find them."
Moses said a typical unpaid water bill is $50, but some are as large as $300.
"We get on the phone, make visits to the premises and try to find them," she said.
by CNB