THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, July 31, 1996 TAG: 9607310416
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY ELIZABETH THIEL, STAFF WRITER
LENGTH: 73 lines
If you own a car or a boat, you've already received the dreaded notice in the mail. It's personal property tax time again.
Residents of Chesapeake, Norfolk and Suffolk have a new, less painful way to pay.
People who owe taxes can apply, as if they're requesting a credit card or a small loan, to pay their taxes in installments over six months.
Or they can pay their tax bills with Visa or MasterCard, although the credit card companies often charge high interest rates.
In the past, residents were forced to pay their bills all at once or risk being added to the rolls of delinquent taxpayers.
``It's just another alternative way that people can pay their taxes,'' said Chesapeake Treasurer Barbara O. Carraway. ``It's working extremely well.''
A 2-year-old Chesapeake company called Tax Assist L.L.C. is handling the installment arrangements with area cities.
Details of how it works vary with each city. In Chesapeake, for example, residents also can pay real estate taxes on an installment plan.
But the basic process is the same for all cities.
Citizens call Tax Assist and make application for credit. The application is simple; residents must give their address, their employer and their bank.
For a fee - $25 plus 10 percent of the tax amount - Tax Assist then will pay citizens' tax bills in full and collect monthly repayments.
Or Tax Assist will accept credit card payment.
No interest is charged, unless a citizen takes longer than the agreed-upon period to pay. Generally that's six months, although large tax bills can be stretched to as long as 10 months.
Residents who default on the monthly payments are reported back to city treasurers, who will take over collection.
Tax Assist makes its money on the fees.
``It's a volume business,'' Paul J. Forte, operations manager for Tax Assist.
Forte said he is starting to discuss agreements with other cities, such as Virginia Beach. City treasurers have been enthusiastic so far, he said.
``Look at it from their point of view,'' he said.
``It's offering a service to their citizens that they can't provide. It's no cost to them.''
The arrangement is new because state law previously has been unclear about whether local treasurers could accept tax payments from third parties.
The General Assembly this spring changed the law to allow it. The new rule went into effect July 1.
Local city treasurers were reluctant to sign on until state law was clarified.
Since then, the number of Virginia localities that allow Tax Assist to help taxpayers has increased from less than 10 to 18.
Tax Assist is looking to expand to other states, too.
Chesapeake's city treasurer began almost immediately to notify citizens of the installment option. So far, 1,700 Chesapeake residents have inquired about the new program, and 230 applications have been mailed.
Nearly 50 people have paid taxes with charge cards.
Norfolk's notices are due to go out to delinquent taxpayers this week, if a final agreement with Tax Assist is reached.
``It's a program that I'd like to see our Norfolk folks have at least an opportunity to look at,'' said Norfolk Treasurer Joseph T. Fitzpatrick. MEMO: HOW IT WORKS
To apply: Residents must give their address, their employer and their
bank.
The cost: For a fee - $25 plus 10 percent of the tax amount - Tax
Assist then will pay citizens' tax bills in full and collect monthly
repayments. Or Tax Assist will accept credit card payment.
The payment period: No interest is charged, unless someone takes
longer than the agreed-upon period to pay. Generally that's six months,
although large tax bills can be stretched to as long as 10 months.
More details: For information about whether tax installment plans
are available in your city or how to take advantage of them, call Tax
Assist, 436-2700. by CNB