THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, January 22, 1995 TAG: 9501200219
SECTION: SUFFOLK SUN PAGE: 04 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 51 lines
Once again, after 18 furtive attempts, the city is considering changing the way it collects taxes.
But this time, with a public hearing already scheduled for Feb. 1, the council and City Manager Myles E. Standish appear to be progressing.
``Perhaps,'' said city treasurer Ronald H. Williams, ``its time has come.''
The city now collects real estate taxes in December. Williams said taxpayers complain more about paying in December than about any other problem.
In 1993, the General Assembly enabled localities to establish their own tax deadlines. The city hopes the additional collection will be a financial boost.
Semi-annual collection would create an easier payment schedule for taxpayers, improve the city's cash flow and lessen the need for short-term borrowing. The city also hopes to make more interest off taxpayer money by collecting half the taxes six months earlier.
Payments would be split in half. During a work session Wednesday the council discussed some possible due dates but made no final decision.
Suffolk city staff surveyed 10 cities and found half collected taxes semi-annually, the others quarterly. Suffolk was the only one to collect taxes once a year.
About 60 percent of the city's tax payments are by mortgage companies or large corporationsthat can readily pay early and on time. And with that money in the bank, the city can earn more interest.
The city now collects $19 million in real estate taxes. With semi-annual tax collection, the city would take in $9.5 million six months earlier in the tax year. And if that revenue goes untouched, the city estimates it could earn an additional $190,000 in interest.
Under the city proposal, taxpayers would be asked to pay their real estate tax in full in December and then make a payment of half their taxes the following June. The second half of that tax payment would then be made in December.
During the workshop, Councilman Richard Harris asked city staff to considered giving Suffolk residents a 2 percent discount on their taxes if they paid the full amount in June. But city staff said there was nothing in state law that would allow such a discount.
KEYWORDS: REAL ESTATE TAX by CNB