Tax Due Dates, Late Payments, Returned Checks
Tax Due Dates & Late Payment Penalty Policy
DUE DATES: Payments for routine annual personal property and real estate tax must be received or postmarked by December 5. Payments for supplemental and statutory assessments are due by the due date stated on the bill, but no less than 14 days from the date of the assessment.
LATE PENALTY AND INTEREST: If payment is not received or postmarked by the due date, a penalty in the amount of 10% of the tax due will be added. The penalty for late payment shall be assessed on the day after payment is due. Interest in the amount of 10% per annum will begin to accrue on all remaining balances beginning on the 1st day of the month following the due date (NK Code 66-32).
RATIONAL: Late payment penalty is imposed by law for all untimely payments (VA Code 58.1-9 and 58.1-3916, NK Code 66-32 et al.). The law specifies that payments made by mail must be postmarked no later than the due date. Thus, taxpayers use the mail at their own peril, and anyone who mails a payment on time which is not postmarked on time is required by law to pay the late penalty. The United States Postal Service Mark is the only eligible mark. Postage meter stamps are not acceptable. The only exception to this rule is if the Treasurer’s Office received no payment and the taxpayer can provide official documentation that the payment was sent before the due date (80-81 Report of Atty Gen 348, 4-22-81). Any supporting documentation that penalty does not apply must be approved by the Treasurer or designated Deputy Treasurer. By law, interest of 10% per annum will begin to accrue on the 1st day of the month following the due date (NK Code 66-32). There are several other payment methods available including in person and online at www.NewKentTax.com.
Penalty and interest shall not be removed if:
- The taxpayer did not know the due date or misread the due date (87-88 Report of the Atty Gen 559, 8-22-88).
- The taxpayer did not receive a bill (70-71 Report of the Atty Gen 373, 3-31-71).
- The bill was mailed to the wrong address (81-82 Report of the Atty Gen 393 3-25-82).
- The bill was incorrect (86-87 Report of the Atty Gen 321, 7-31-86).
- The taxpayer received incorrect information from County staff (81-82 Report of the Atty Gen 350, 5-13-82).
- Incorrect information was entered on the payment web portal or phone payment system. (58.1-3916)
Penalty and interest shall not be imposed if:
- The late payment was due to a verified medical condition or mental impairment on the due date, provided payment is made within 30 days of the due date.
- Commissioner of the Revenue abates the underlying tax, the tax is under administrative appeal or the late payment was due solely to a clerical error by the Treasurer’s Office or the Commissioner of the Revenue’s Office. If any act by the taxpayer contributes to the late payment, penalty and interest shall apply.
- Military deployment on due date –a 90-day extension shall be granted after return from overseas deployment.
- Taxpayer provides verifiable evidence that payment was made on time but not received by the due date, or not received at all. (VA Code 58.1-3916)
THE BOTTOM LINE: Penalty and interest is automatically imposed by law. There can be no “waiver” of penalty and interest. Both penalty and interest apply or it does not. Taxpayers have a duty to know the tax due dates and to pay on time. If no bill is received, that duty includes contacting the taxing authority prior to the due date and paying the tax on time (81-82 Report of Atty Gen 393, 3-25-82).