During a recent government meeting, Arlington County officials discussed the alarming rise in tax delinquencies for fiscal year 2024, which have surged to over $18 million—marking the highest level since 2006. The treasurer highlighted that vehicle taxes account for a significant portion of these delinquencies, comprising 60% of total unpaid taxes. This increase is attributed to a growing number of residents purchasing more expensive vehicles, with the percentage of cars valued over $20,000 rising from 15% in fiscal year 2021 to over 25% in fiscal year 2024.

The treasurer noted that many residents are unaware of the tax implications associated with new car purchases, particularly as the average price of a new vehicle has nearly doubled since 2005. The annual tax burden for a new car has increased from approximately $872 to $1,705, exacerbating the issue of delinquencies.

In contrast, real estate tax delinquencies have also seen a notable increase, although the county managed to reduce outstanding real estate taxes to the lowest level on record. Business property tax delinquencies decreased by 23% compared to the previous year, indicating some progress in tax collection efforts.

To combat these issues, the county has implemented various delinquency prevention strategies, including a customer assessment and payment portal that allows for automated reminders and payments. The treasurer reported that $57 million in taxes were collected through an automatic bank debit program, reflecting a 10% increase from the previous year. Additionally, outreach efforts have been enhanced, with in-person assistance provided at community centers to help residents navigate their tax obligations.

Officials acknowledged the need for improved communication regarding tax responsibilities, particularly for new car owners, and discussed the potential for expanding payment options to accommodate residents on fixed incomes. The meeting concluded with a commitment to continue exploring innovative solutions to reduce tax delinquencies and support the community.