Delinquent Taxes

Delinquent Tax Accounts - Collection Efforts and Processes

After reading this page and content, please contact the following Clarke County personnel for any questions related to a delinquent account, or an any account that has been referred to a collection's agency:

Julie Sweetser
Deputy I - Delinquent Enforcement Manager
(540) 955-5160 - Option 1
jsweetser@clarkecounty.gov

Delinquent accounts are subject to collection action per the Code of Virginia, §58.1, Chapter 39 (Enforcement, Collection, Refunds, Remedies and Review of Local Taxes)

Listed below is a brief explanation of the types of collection actions potentially taken or evoked by our office.

DMV STOP

Delinquent taxpayer is no longer able to renew or modify vehicles or licenses until all taxes are brought current and stop is released. This action is also subject to administrative fees from Clarke County and the Virginia DMV.

DEBT SET-OFF

A set-off clause is a legal provision that grants the Treasurer's Office the authority to intercept a taxpayer's tax refunds and lottery winnings in the event of default or delinquency on their personal property taxes.

ADMINISTRATORS SUMMONS

An Administrator's Summons is a formal legal notice issued by the County Treasurer's Office and served by a Law Enforcement Officer which requires an individual or entity to appear or respond to matters related to outstanding tax obligations. It serves as a means for the Treasurer's Office to notify taxpayers of their responsibility to address their tax liabilities (in person), and failure to comply may result in further legal actions, such as the seizure of assets or garnishment of wages, and/or criminal charges.

BANK LIEN

A lien placed on the bank account of the delinquent taxpayer, and the bank remits funds to Clarke County to pay delinquency. This action is also subject to administrative fees from Clarke County and typically the taxpayer’s bank.

EMPLOYER LIEN

A lien is placed on the delinquent taxpayer's wages and the employer remits employment funds to Clarke County to pay delinquency. This action is also subject to administrative fees from Clarke County.

DISTRESS WARRANT

Law enforcement in jurisdiction enforces warrants on available property owned by delinquent taxpayers, property can be sold, if necessary, to fund payment of tax debt, subject to Clarke County administrative fees, as well as fees incurred removing property (ex. vehicle boots, towing).

TAX SALE

Judicial or non-judicial sale of real property by Clarke County to fund payment of tax debt, subject to administrative fees by Clarke County, as well as cost-of-sale fees incurred throughout the process.

JUDGMENT

Clarke County files judgment with Court extending the statute of limitations on delinquency, judgment is also reported on credit report and is subject to administrative fees by Clarke County.

Frequently Asked Questions

What are administrative fees?

Administrative fees are fees assessed on a taxpayer when collection actions are taken. The fee is allowed per County code and is currently $25 per action. The County also collects a $25 fee the DMV charges to release a DMV records stop.

I am unable to renew my license plates or change vehicle registrations at the DMV because of outstanding Clarke County taxes. Why?

Clarke County is permitted by the Virginia DMV to stop renewals of vehicle registrations of any taxpayer that owes Clarke County delinquent personal property taxes. The stop is on the taxpayer, so it applies to any/every vehicle that person is an owner, co-owner, or of which is listed on title. To have the stop removed, all of the delinquent taxes/fees for the taxpayer(s) whom the stop is placed, must be paid.

How much is the late payment penalty and interest on delinquent taxes?

The penalty is assessed on the first day the tax is delinquent. A late payment penalty of 10% will be applied if payment has not been received by the due date. Additionally, interest will accrue at the rate of 10% per annum, assessed monthly.

How does a delinquent tax payment plan work?

If you qualify, you may set up a formal payment plan for your outstanding balance. Please note the following:

Payment plans are only available for balances of $2,500 or more.

Plans can extend for a maximum of 6 months.
Payments can be weekly, twice a month, or monthly.
A payment must be made at least once a month, or in a 30-day rolling period.
Penalties and interest will continue to accrue while on a payment plan.
If you fail to make payments as agreed, immediate additional collection actions will be taken.

To avoid future delinquency, we strongly recommend paying off your balance by the next tax period. Tax billing occurs every 6 months with due dates of 5-June and 5-December.

Important: If you fail to make payments as agreed, immediate additional collection actions will be taken.

I am unable to pay my taxes by the due date, what options do I have?

Any amount paid prior to the due date will minimize penalties and interest, so it is best to pay what you can before the due date. Only the remaining balance is subject to penalties and interest. Penalty and interest are assessed the day after the taxes are due. However, collection efforts/actions do not generally begin until 30 days after the tax bill due date. This allows the taxpayer at least 30 days to pay without any collection fees or efforts. If you are not able to pay the entire balance due at 30 days past the due date, you will need to see if you qualify for a payment plan to avoid collection action.

When are taxes considered delinquent?

Taxes are considered delinquent the day after they were due (if unpaid). A late payment penalty of 10% will be applied if payment has not been received by the due date. Additionally, interest will accrue at the rate of 10% per annum, assessed monthly.