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1996 SESSION
961971809Be it enacted by the General Assembly of Virginia:
1. That § 58.1-1803 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-1803. Department of Taxation may appoint collectors of delinquent state taxes; Contract Collector Fund established.
A. The Department of Taxation may appoint a collector in any county or city to
collect delinquent state taxes therein, and may allow him a reasonable
compensation, to be agreed on before the service is commenced, which
compensation shall not exceed twenty percent on what may be collected and paid
into the state treasury.
B. The Department of Taxation may appoint collectors or contract with
collection agencies in any state to collect delinquent
state taxes therein from taxpayers not residing or domiciled in
this Commonwealth, and allow reasonable compensation for such services,
to be agreed on before the service is commenced. Delinquent claims for state
taxes may be assigned to collectors or collection agencies so designated for
the purpose of litigation in the Department of Taxation's name and at the
Department of Taxation's expense.
C. The Tax Commissioner shall add to an outstanding assessment an amount
equal to the compensation, including costs and expenses, to be paid to a
collector or collection agency authorized in this section. In cases where
collection is made by action at law or suit in equity, such costs and expenses
shall include litigation expenses and attorney's fees. Such addition shall not
exceed twenty percent of the outstanding assessment.
D. Compensation for collectors and collection agencies appointed by or
under contract with the Department of Taxation pursuant to this section shall
be paid out of the state treasury on warrant of the Comptroller issued on the
certificate of the Tax Commissioner. Such collectors who are
attorneys-at-law shall have authority to institute actions at law or suits in
equity for the recovery of state taxes. For the purpose of this section, the
term "state taxes" shall include any penalty, and
interest and all costs of collection charged by the collector or
collection agency for collecting an outstanding assessment added to delinquent
taxes and shall also include the local sales and use tax imposed under
the authority of §§ 58.1-605 and 58.1-606 and any penalty and
interest applicable thereto. Each collector so appointed or collection agency
so contracted with shall give bond to the Commonwealth for the faithful
performance of the duties placed upon him by this section, in a penalty to be
fixed by the Tax Commissioner, in whose office the bond shall be filed. Any
county or city treasurer turning over delinquent tax tickets to any such
collector in pursuance of orders issued by the Department of Taxation shall
receive credit on the Comptroller's books for the amount so turned over.
D. There is hereby established a special fund in the state treasury to be known as the Contract Collector Fund, hereafter referred to as the Fund. All moneys collected by collectors and collection agencies appointed by or under contract with the Department of Taxation pursuant to this section shall be placed in the Fund. Compensation of such collectors and collection agencies shall be paid out of the Fund on warrant of the Comptroller. The Comptroller shall transfer to the appropriate general, nongeneral, or local fund all moneys in the Fund in excess of that required to be paid to persons under contract, as determined by the Department, no later than June 30 each year.