Norfolk to garnishee wages of tax delinquents

NORFOLK

Hundreds of city employees with delinquent personal property taxes will see their wages garnisheed next week. The move is an effort to help boost Norfolk's revenues, which have been declining because of the economic slowdown.

Last year, the treasurer's office revamped its collection policies after The Virginian-Pilot reported the city had a backlog of delinquent real estate accounts and was doing little to collect on them. The changes have netted millions of dollars in revenue.

The garnishee actions were prompted by an audit this summer, which revealed that 594 city employees owe more than $350,000 in taxes on 916 separate accounts, said Vice Mayor Anthony L. Burfoot, who is a deputy treasurer. That's more than 10 percent of the city's workforce of 3,800.

Personal property taxes are paid by residents largely on cars, trucks and boats.

Norfolk appears to be the last city in South Hampton Roads to garnishee city employees' wages for delinquent personal property taxes.

Virginia Beach Treasurer John T. Atkinson said he instituted a similar program 20 years ago. Employees quickly got the message, he said.

In Suffolk, as soon as an employee is identified, a slip is sent to payroll, Treasurer Ron Williams Sr. said.

Portsmouth Treasurer Jimmy Williams said his office has long treated employees like other delinquent taxpayers.

"We don't target them. We include them," he said.

Chesapeake Treasurer Barbara O. Carraway said the city follows that practice, too.

Most cities in the area allow residents with delinquent taxes, including city employees, to pay over time if they can show a financial hardship.

Norfolk Treasurer Thomas W. Moss Jr. sent an email to city employees on July 14, urging them to contact his office by Aug. 15 if they owe back taxes.

"We wanted to give people enough time to make arrangements," he said.

Although most city employees received a one-time bonus of $500 earlier this summer, they have not had a pay raise in three years. Burfoot said the treasurer's office has tried to be understanding. Employees were billed repeatedly, he said.

"It's a tough economy," he said. "But we have to be consistent, whether it's employees or citizens who live in Norfolk."

Burfoot said the city is garnisheeing wages in private companies as well. Since Moss' initial email to employees, more than half have paid what they owe, Burfoot said.

Moss and Burfoot declined a Freedom of Information Act request from The Virginian-Pilot to provide the names of taxpayers with delinquent taxes.

"I would love to release the list of names to you," Moss said. "But state law says that I can't."

Pilot writers Dave Forster and Marjon Rostami contributed to this report.

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com