Tax Services & Enforcement
Note: New Business Tax System May Affect Payments
The City is transitioning to a new tax system for business personal property taxes. If you need to make an on-line or phone payment for bills that were due before October 25, 2009 you may need to call 703.746.3909 to obtain your new account number.
Tax Services & Enforcement is tasked with managing the City's tax relief programs, assisting taxpayers with preparing State income tax returns, and collecting delinquent City taxes. Staff aims to collect all delinquent City taxes, license fees and miscellaneous revenues while maintaining excellent customer service.
Tax Services
Tax Enforcement: Delinquent Taxes
Other Resources
Payment Methods
Alexandria Tax Guide
Personal Property Tax
Business Tax
Real Estate Assessments
Tax Audit, Research & Analysis Unit
Tax Relief and Tax Assistance Programs
The City of Alexandria has created several programs to ease the Real Estate and Personal Property tax burden on elderly, disabled and/or economically disadvantaged resident owners.
Real Estate Tax Relief for Elderly and Disabled Persons Program: Residents of the City of Alexandria who are 65 years of age or older or who are permanently and totally disabled as of January 1 of each year may be eligible for the City's Real Estate Tax Relief or Deferral Program for Elderly or Disabled Persons.
Personal Property Tax Relief for Elderly and Disabled Persons Program: The City’s Personal Property Tax Relief Program for senior or permanently disabled, City residents allows eligible applicants to be exempt from payment of personal property tax on one vehicle.
Note: A taxpayer may simultaneously apply for Real Estate Tax Relief and Personal Property Tax Relief using the combined application form. If more than one vehicle is owned, the City will apply the benefit to the vehicle with the highest assessment, subject to certain guidelines.
Affordable Homeownership Preservation (AHOP) Grant Program: Due to budget considerations, this program has been eliminated. For those homeowners experiencing financial difficulties, the City continues to offer payment plans and the Automatic Bank Debit Program for real estate taxes. You may also benefit from programs available through the Office of Housing and the Department of Human Services.
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Tax Preparation Assistance
Tax Services & Enforcement assists taxpayers with preparing current year Virginia State Income Tax returns. There is currently no assistance available for preparing federal income tax.
To receive assistance you must meet the following criteria:
Assistance is available Monday through Friday, 8 a.m. to 5 p.m., by email or by phone at:
Tax Services & Enforcement
703.746.3909
Email: 
In-person assistance is available Tuesdays and Thursdays, 10 a.m. to 2:30 p.m. at:
Tax Services & Enforcement
301 King St., Suite 1700
Alexandria, VA 22314
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Tax Enforcement: Delinquent Taxes
All taxes are considered delinquent on the day following the due date. The due dates for all City taxes can be found on the Finance Calendar. If the usual due date falls on a weekend, tax payment will be due on the first business day following the due date and the delinquency date will be one day later.
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Collections Tools
Tax Services & Enforcement uses a number of tools to ensure the collection of all delinquent taxes, penalties, interest and fees owed to the City of Alexandria.
Payment Plans
On occasion, taxpayers may not be able to pay when taxes are due. The payment plan, which spreads the total tax liability over time, is designed only to stop legal action for collection of delinquent taxes. It is a formal, signed agreement between the City and the taxpayer. The typical payment plan requires that the taxpayer make an initial payment of 20% of the taxes due; the remaining balance will then be paid in installments over a time period designated by the City. Interest will continue to accrue during the payment period.
In-House Collections
Tax Services & Enforcement mails a variety of letters informing taxpayers that they are delinquent on their taxes and may face collection action. If the taxpayer does not respond, staff initiates legal action to collect the delinquent taxes. Once collection begins, staff mails letters explaining the collection process.
DMV Stops
Through the Virginia Department of Motor Vehicles Vehicle Registration Withholding (DMV Stop) Program, the City will ask the DMV Commissioner to withhold registration or registration renewals for any taxpayer who owes delinquent taxes, penalties, interest and fees to the City of Alexandria. Once a DMV Stop has been placed on an account, the taxpayer must pay the entire amount due with certified funds (cash, money order or cashier's check) to get the Stop removed. An administrative charge of $20 is added to each delinquent account with an amount due over $20 to pay for the cost of this program. (Virginia Code Sections 46.2-752 and 58.1-3958)
Set-Off Debt
Through the Set-Off Debt Program, the City asks the Virginia Department of Taxation to withhold all or part of a taxpayer's Virginia State Income Tax refund to cover any balance due to the City. An administrative charge of $25 is added to each delinquent account with an amount due over $50 to pay for the cost of this program. (Virginia Code Sections 58.1-523 and 58.1-3958)
Collection Agencies and Credit Bureaus
In some cases, Tax Services & Enforcement determines that an outside agency has information or methods that are more likely to result in the collection of delinquent individual or business taxes. These cases are referred to outside collection agencies under contract. Accounts referred to collection agencies may also be reported to credit bureaus and appear on the taxpayers' credit reports.
Publication of Delinquent Taxpayers List
Delinquent taxpayer lists are published annually in the local newspaper and/or on the City's website for all taxpayers with delinquent balances greater than $20 as of June 30. (Code of Virginia Section 58.1-3921)
Wage Liens
Tax Services & Enforcement makes arrangements with the delinquent taxpayer's employer to garnish the wages of the delinquent taxpayer in the amount that is owed. It may be necessary to garnish more that one paycheck in order to satisfy the tax liability.
Bank Liens
Tax Services & Enforcement makes arrangements with the delinquent taxpayer's bank to recover from the taxpayers' account(s) the amount that is owed.
Rent Liens
Tax Services & Enforcement places a lien against all rental income due the taxpayer to recover the amount that is owed. (Code of Virginia Section 58.1-3944)
Third Party Liens
Tax Services & Enforcement applies in writing to any person indebted to or having in his hands estate of a taxpayer for payment of taxes more than 30 days delinquent. Payment by this third party will entitle him to a credit against such debt or estate. The taxes, penalties and interest constitute a lien on the debt or estate due the taxpayer from the time the application is received. For each application served, the person applied to is entitled to a fee of $20. Staff will also send a copy of the application to the taxpayer with a notice informing him of the lien. (Code of Virginia Section 58.1-3952)
Till Taps
Finance staff prepares a Distress/Seizure warrant for the Sheriff's Office to enter a business and seize cash from the cash register for payment of delinquent taxes. (Code of Virginia Sections 58.1-3919 and 58.1-3941)
Bonds for Fiduciary Taxes
Any business more than two months past due in the payment of admissions, meal sales, or transient lodging taxes may be required to post a bond for these taxes. Since fiduciary taxes collected from customers are held in trust by the business owner, they should not be commingled with the business' operating funds.
Seizure of Personal Property or Assets
In extreme cases, Tax Services & Enforcement may work with the Sheriff's Department or Police Department to seize property and/or assets that can be used to satisfy or can be sold to satisfy delinquent taxes. These properties are sold through auctions that are open to the public.
Seizure of Real Estate
When real estate taxes remain delinquent as of the December 31 following the second anniversary of the original due date, Tax Services & Enforcement may work with the Court to seize the property and sell it to satisfy the delinquency. These properties are sold through public auctions that are open to the public. (Code of Virginia Section 58.1-3965)
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Field Visits
Finance Department staff conducts “door to door,” field inspections of businesses operating in the City for a period of three to four months each year. Staff verifies tax compliance by requesting confirmation that businesses are currently licensed and up to date on taxes owed. City staff will take the following steps to provide businesses with additional information and time to comply:
1. Issue Warning Notices to businesses that do not have a valid City business license. The Warning Notice advises the business owner that he must obtain a City business license and file for business personal property tax. (Sample Warning Notice)
2. The business is given a packet of information that includes a copy of the Alexandria Small Business Resource Guide. This Guide provides information to the business owner regarding procedures and requirements for establishing a business in the City of Alexandria. Also included in the packet are the current year business license application, business personal property tax return and the interdepartmental approval form. This form requires the business owner to contact the Zoning Division, Code Enforcement, and other applicable City agencies.
3. If the taxpayer fails to respond to the Warning Notice within the specified time, staff will make a courtesy call to remind the business owner that he failed to comply with the City business license and business personal property tax requirements.
4. If the taxpayer fails to respond:
A. Staff will check state sales tax records for the following: gross receipts reported by the business for the current and last three years, the date the business began to operate in the City and a brief description of the type of business conducted by the company.
B. If staff cannot find the company’s information, they will review their field notes to determine the business tax classification then statutorily assess (see below) the business for the estimated length of time the company has operated in the City.
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Statutory Assessment
If a taxpayer fails to file a tax return by the due date, the relevant office's staff will assess the tax based on the best information available. Tax Services & Enforcement will enforce this statutory assessment.
Business License or Business Personal Property Tax: If the company has previously reported gross receipts or tangible personal property information to Business Tax, staff will use the previously reported information to prepare a statutory assessment. If staff is unable to obtain the necessary information, staff will prepare a statutory assessment by reviewing the gross receipts or tangible personal property filings of a similar company. If this information is not available, staff will statutorily assess the business based on the best possible estimate.
Personal Property Tax: If a taxpayer fails to file for personal property tax, staff will assess the vehicle based on Virginia Department of Motor Vehicles records and a recognized pricing guide.
If you receive a statutory assessment of Business License or Business Personal Property Taxes and wish to appeal the amount of the assessment, you must fill out and return either a Delinquent Business License Application or a Business Personal Property Tax Return. For forms or further information, contact Tax Services & Enforcement.
If you receive a statutory assessment of a vehicle and disagree with the value placed on the vehicle, you must follow the normal personal property appeal procedure. If you have been assessed for a vehicle that is not located in the City or has been disposed of (sold, traded, donated, etc.), contact Personal Property Tax for assistance.
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Penalties, Interest and Fees
The City of Alexandria imposes penalties for failure to file or pay taxes on time, assesses interest on delinquent taxes and charges fees to cover the cost of collection.
Late Filing Penalty
- Personal Property Tax: All vehicles must be registered for personal property tax within 30 days of purchase or within 30 days of moving into the City. After an additional 90 day grace period, the City assesses a late filing penalty of $10 or five percent of the tax due from the taxpayer, not to exceed the amount of the tax payable by the taxpayer. (City Code Section 3-2-229).
- Business Personal Property Tax: Business personal property tax returns must be filed by May 1 of each year. The City assesses a late filing penalty of ten dollars or five percent of the tax due, whichever is greater, for failure to file a business personal property tax return by the due date. In no case may a late filing penalty exceed $500 if a return is filed within the first 30 days after the due date. If the tax filing is more than 30 days late, the late filing penalty is five percent of the total tax due amount. (City Code Section 3-2-229)
- All Other Taxes: The City assesses a penalty of $10 or ten percent of the tax due, whichever is greater, for failure to file a return.The penalty may not exceed the amount of the tax. Information on the filing dates for other taxes can be found in the Alexandria Tax Guide.
Late Payment Penalty
- The City assesses a late payment penalty of $10 or ten percent of the tax due, whichever is greater, on all tax accounts paid after the due date. No penalty may exceed the amount of the tax billed.
Interest
Administrative Fees
- For all delinquent personal property tax accounts with balances above $50, the City assesses a total administrative fee of $45 to cover the cost of collection through the Virginia Department of Taxation's Set-Off Debt Program ($25) and the Virginia Department of Motor Vehicles Vehicle Registration Withholding Program ($20). (Code of Virginia Sections 46.2-752, 58.1-520.1, and 58.1-3958; City Code Section 3-2-230)
- For all delinquent personal property tax accounts with balances between $20 and $49.99, the City assesses a total administrative fee of $20.
- No administrative fee is charged on accounts with balances below $20.
Waiver of Penalty and Interest
If you do not receive a tax bill three weeks prior to the due date, please call the Treasury Division at 703.746.3902 to determine the total amount due. Failure to receive a tax bill does not relieve the taxpayer of the obligation to pay taxes by the due date and is not grounds for the waiver of late payment penalty and interest.
Penalty and interest may only be waived in cases of late payment when one of the following conditions is met:
- The taxpayer can substantiate, with his or her own affidavit and a supporting statement from the postal service, that the tax filing or tax payment, although postmarked subsequent to the due date, was in fact mailed on or before that date; or
- It is substantiated through appropriate documentation that the taxpayer died in the six-month period immediately preceding the due date or that the taxpayer was, for medical reasons, incapable of making the tax filing or tax payment on the due date; or
- The tax bill is mailed to a prior owner of the taxpayer's property after a deed of transfer has been recorded, but before the City's assessment records have been updated.
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