Richmond tax amnesty program sailing through assembly

A state Senate committee yesterday approved the city of Richmond's bid to implement a tax-amnesty program that could allow it to collect millions from delinquent taxpayers.

The Committee on Local Government unanimously approved House Bill 796, sponsored by Del. Jennifer L. McClellan, D-Richmond. The legislation needs only to pass the full Senate before heading to Gov. Bob McDonnell.

The Virginia Constitution does not give local governments the power to offer tax-amnesty programs, so they must seek approval from lawmakers.

Because it is considered emergency legislation, it could take effect immediately upon being signed.

Officials said the city could offer amnesty -- no penalties or interest on back taxes paid off -- to taxpayers currently delinquent in real estate, personal property, and machine and tool taxes, which account for more than 60 percent of the city's general-fund revenues.

Through 2009, the city was owed about $38 million in back taxes. Richmond collects roughly $12 million of its delinquent taxes a year, plus interest and penalties. Officials said an amnesty program could help it collect an additional $4 million to $8 million a year.

In 2009, the state collected $102 million in delinquent state taxes.

http://www2.timesdispatch.com/rtd/news/state_regional/state_regional_govtpolitics/article/TAXX24_20100223-222007/326390/