Loudoun’s Cooperative Tax Collection Proposal Clears Senate

The effort to consolidate municipal real estate and personal property tax collections in Loudoun with the County Treasurer’s Office advanced in the state Senate today.

Sens. Jennifer Wexton (D-33) and Dick Black (R-27) sponsored bills that would authorize the Loudoun County government to enter agreements with the town governments collect their municipal taxes.

The legislation was unanimously approved by the Senate today. A companion House bill, sponsored by Del. Dave LaRock (R-32), also is moving through review without opposition—clearing the Committee on Counties, Cities and Towns on Friday, with passage expected later this week.

County and town leaders say centralizing real estate and personal property taxes with the county would both simplify things for town residents—who would receive one tax bill instead of two—and create a cost savings for the towns, which would dedicate 1 percent of their revenues to funding the county’s operation.

Leesburg, Middleburg, Lovettsville, Round Hill, and Hillsboro have indicated an interest in pursuing the cooperative collection venture. Purcellville and Hamilton have elected not to participate.

Senate Bill 92:

Be it enacted by the General Assembly of Virginia:

  1. § 1. Notwithstanding any other provision of law, the Loudoun County Board of Supervisors may authorize the treasurer of Loudoun County to enter into an agreement with any town located partially or wholly within Loudoun County for the county treasurer to collect and enforce delinquent or non-delinquent real or personal property taxes owed to such town. The county treasurer collecting town taxes pursuant to an agreement made under this act shall account for and pay over to the town the amounts collected, as provided by law. Any such agreement shall establish the terms for such collection and enforcement, including payment of reasonable compensation by the town for the services of the county treasurer and the order in which the county treasurer will credit partial payments between taxes owed to the county and those owed to the town.

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