Dec 12, 2023 - News

Richmond car tax audit flags phony fees for over 66,000 people

Ned Oliver

Illustration of Benjamin Franklin in a car's rear view mirror, with a dollar-symbol air freshener. — Illustration: Shoshana Gordon/Axios

Richmond tacked on erroneous penalties to over 66,000 personal property tax bills last year, per an audit released this week.

What's happening: The city granted residents a two-month extension on the car tax due date last year (because everyone's car tax bill went up by a lot due to supply-chain issues driving up car values), but the billing system didn't get fully updated with the new due date.

As a result, 66,057 customers got charged for an extra two months in interest and penalties, the auditors' office found.

What's next: The auditor recommended the finance department refund the fees, and the department agreed, writing it has "completed the plan for remediation."

City officials did not respond to a request for comment.

What we're watching: The audit also found addressing issues with bills can take forever.

The nearly 10,000 requests received related to personal property taxes in 2022 took an average of 118 days to resolve — far in excess of the department's 60-day target.

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Richmond car tax audit flags phony fees for over 66,000 people

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