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COLLECTION PROCEDURES <br />FOR <br />DELINQUENT REAL ESTATE <br />September 14, 2004 <br /> <br />Real Estate taxes are billed twice a year within the fiscal year for the City of Martinsville. <br />The first installment is due December 5 and the second installment is due June 5. The <br />last installment is, therefore due in a different calendar year. <br /> <br />The taxpayer receives a delinquent notice approximately 30 days after the real estate bill <br />is due. The delinquent notice for December is mailed early January and the notice for <br />June is mailed in July. <br /> <br />Any unpaid real estate account is submitted to setoff debt of Virginia for a lien against an <br />income tax refund or lottery proceeds. <br /> <br />Treasurer's liens are placed on any identified resource such as employer, bank, tenants or <br />other income sources. <br /> <br />Land sale is the last option for collection of delinquent real estate taxes. Referrals for <br />sale are made according to the number of years delinquent, amount of tax owed, ability <br />and or willingness of taxpayer to pay taxes. <br /> <br />Property with tax assessments greater than $50,000 or those not fitting Code 58.1-3965 is <br />referred to Kaufman & Canoles for resolution within eighteen months. Accounts will be <br />referred to another resource when time frames are not met. <br /> <br />The process includes obtaining a bill of sale from Circuit Court and an auction for sale of <br />the property. <br /> <br />Real Estate accounts with tax assessments greater than $10,000 but less than $50,000 that <br />meet Virginia Code 58.1-3965 are referred to the City Attorney for resolution within <br />twelve months. Accounts will be referred to another resource when time frames are not <br />met. <br /> <br />The statute allows transfer of the property to the City of Martinsville. Following <br />transfer to the city the properties would be sold at a public auction. <br /> <br />Property with tax assessments of less than $10,000 that meet new statutory requirements <br />of Code 58.1-3975 will be sold at auction and will not require legal services. The <br />process should require approximately eight months. These are considered non-judicial <br />sales. A contractual arrangement with the support of Council will be necessary to <br />expedite the sale process. Interstate Auction Company has established a process that <br />follows the new code and wishes to work with the city. <br /> <br /> <br />