Roanoke County treasurer proposes $30 delinquent fee, tiered late penalty; board approves first reading

Roanoke County Treasurer Kevin Hutchins presented a proposed amendment to Chapter 21 of the Roanoke County Code on May 12 that would add a $30 administrative fee for collecting delinquent personal property taxes and shift late-payment penalties to a two-tier approach.

Hutchins said the new section would allow a $30 administrative delinquent fee for personal property taxes that are 90 days or more delinquent. He described a proposed change to the late-payment penalty that would impose a 3% penalty if payment is made within 60 days of the due date and a 10% penalty thereafter; staff said the change is authorized by the Virginia Code cited in the presentation.

Hutchins estimated the administrative fee would generate about $390,000 annually while the penalty reduction (from a straight 10% amount) would reduce annual revenue by roughly $330,000. He told supervisors the county has looked at practices in larger localities and that the tiered approach is intended to mitigate the perceived harshness of a straight 10% penalty while creating a predictable administrative recovery fee.

Supervisors asked about the rationale for selecting 3% and discussed how penalty language appears on tax bills; Hutchins said staff will review bill wording and notice to taxpayers. The board approved first reading of the ordinance and scheduled a second reading and public hearing for the May 26 meeting.

What’s next: staff will return with the ordinance and any revised notice language for the second reading on May 26.