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.
Contact Jim Nolan at (804) 649-6061 or jnolan@timesdispatch.com.
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