By Taylor Boyd
The Patrick County Board of Supervisors will seek input on a potential real estate tax increase of up to 5-cents, or from .68 to .73 per $100 of assessed value, for the fiscal year 2021-2022.
The hearing will be held at 6 p.m. Wednesday, March 24, in the third-floor conference room of the Patrick County Veteran’s Memorial Building.
County Administrator Geri Hazelwood recommended “we set it at 5-cents, but we can always lower it. We can lower it all the way back down to 68-cents if we get into the budget and we can cut, and we can realize that we do not need to increase that tax rate by five cents.”
Hazelwood said the budget committee has received an estimated $1 million in requests while going through the budget worksheets. “Some are mandated, some are not. You know we got work to do on that budget,” she said.
Denise Stirewalt, of the Peters Creek District, said she would rather set the tax higher and possibly lower it once the board works through the budget.
“If you look at just one department, the state mandates in her requests is one cent. Then, you got the other departments. These state mandates coming down is going to constitute a tax increase no matter what unless we cut jobs and contributions,” Stirewalt said, but did not identify the department.
“Hopefully we will know a little bit more on the 22nd as we begin to go through that budget as an entire board to see if there are cuts that can be made,” Hazelwood said.
Clayton Kendrick, of the Mayo River District, said the board has not yet seen a projection of county receipts.
“We’re a long way from being through with the budget,” he said.
As it struggles to balance the budget, the board also approved a new Delinquency Tax, which will allow the Treasurer’s office to add a one-time $30 administrative fee to an account that is over 30 days overdue.
Treasurer Sandra Stone said the tax is primarily aimed at the accounts that do not respond to the many county notices.
“We send lots of letters, we do mail letters, we do final notices, and as you all know, postage goes up. It costs the locality to do this. This is basically a $30 fee that you can cap on there and it helps recoup what we as the County do,” she said.
“The delinquency tax does not affect those on payment plans or those that pay their taxes on time,” she added.
Stone said the new tax is designed to make people realize the importance of paying their taxes.
“I understand that there are things that come up and people can’t always pay on time. You ask anybody, we have payment plans and we work with them in any way that we can. This is just for some of those accounts that you do numerous and numerous and numerous things and it kind of keeps coming back in your face for trying to persuade them that this is important,” she said. “My job is to collect taxes and that’s what we’re trying to do.”
The purpose of the new tax also is to discourage people from writing bad checks.
“You know, right now it’s kind of no big deal to them. They come in and we’re getting charged. It’s a way to recoup money for the locality. Wage lien, you know. We’ve got people that have gotten to the point that they say ‘oh yeah, just take it out of my check. That’s easier for me,’” she said.
Stone said the decision to add the $30 administrative fee is “just like a DMV stop. It’s not a big thing. It’s just a way to recoup some of the locality’s money. We’re not going to go out there and after June 5th and tag a $30 fee to everybody that hasn’t paid. That’s not what this is about.”
The Tax Authority Consulting Agency will administer the new tax, she said, and added “they deal with pretty much treasurers all over and they are aware of the laws that apply to us as treasurers.”
When asked why County Attorney Alan Black would not be in charge of the tax, Stone said it was not that Black did not have the time to do it but, “it’s at my discretion of how and what I do to collect delinquent taxes. It’s my job as an elected official to collect taxes of the county both current and delinquent, so we” are using the agency.
“We just felt like this was the better fit. They do this, this is what they do, they have a lot of access to be able to access these people. It has worked wonderfully, and it’s not about another salary it’s really not. These fees and everything are coming out of what properties are being sold,” she said.
Kendrick was one of those to oppose the tax in the 3-2 vote. He said he also opposed the way the tax would be administered.
“I think it is something that should be handled local with the county attorney instead of farmed out, and I don’t really agree with putting a penalty on somebody if they really can’t pay their taxes,” he said.
“It’s not right for people to not pay their taxes when others are paying them. If these people get by with not paying, you’re raising the rate to make others pay for what they’re not doing,” Stone said.
Jane Fulk, of the Dan River District, said she voted against the ordinance because she’s still “not quite straight on that, and I’m not going to vote for something I don’t know enough about.”
DeLoach was among the majority in support of the tax.
“If all of us are paying taxes, and we have fire and rescue and everything else we desperately need money for,” he said. “We need to get the money.”
