RICHMOND, Va. — "What's going on? Why is there no communication?"
Those were questions posed by Nancye Hunter after she said the Richmond business she works for was not promptly notified of a big change to how it needs to file taxes with the city.
On Monday, Hunter said the business, which she did not want to identify publicly, received a letter from the city's Finance Department announcing it will no longer accept paper filings for business personal property taxes and instead will rely on a new online portal.
That letter arrived on February 24, according to Hunter. That's just five business days before the filing deadline of March 3.
“The letter was dated January 30, but we didn't receive it until yesterday, on Monday, and all of the postmarks with the other mail that came with it were dated February 14. So I don't really think that that letter was sent out timely," Hunter said. “If you want your businesses to file on time and properly, and you want to be able to collect those revenues, you've got to be able to communicate with the businesses.”
Hunter was worried that some businesses may not get the notice in time, putting them at risk of hefty late fees.
“The penalty fees on these taxes are 10 percent so, easy numbers, if you owe $20,000, that's a $2,000 penalty fee that you're going to be forced to pay," Hunter said.
Her concerns were echoed by certified public accountant Lindsey Barr, who handles taxes for dozens of city restaurants.
“I think that there will be efficiencies in the future. I just think that it was a little too rushed," Barr said about the city's rollout.
Barr said the city's communication has been unclear, fragmented, and confusing. It wasn't until late January that she became aware of the process change after doing her own research.
City spokesperson Ross Catrow said the city began its communication through "mailers, emails, social media, and marketing campaigns" in December and that businesses started registering in the new system in early January.
Catrow said customers "have been clear that our previous, outdated manual processes did not meet their needs and made it more difficult for business owners to stay in compliance." Those inefficiencies became apparent during last year's meals tax fiasco, when dozens of restaurant owners came forward to complain about what they called unfair penalties and poor communication, customer service, and tax collection practices in the Finance Department.
Still, Barr said she's frustrated that all businesses are required to file electronically, as opposed to being given the option, especially on short notice.
Meanwhile, Henrico Finance Director Sheila Minor said the county offers both paper and online filing methods, saying the ability to choose is "a convenience for our customers."
“We love how Henrico works, and that they do mail the forms and then they give you the option of filing online, but it's not mandatory," Barr said.
Catrow said the city "focused our efforts on optimizing our processes using digital formats that allow us to more efficiently and effectively assess and collect taxes."
On Monday, CBS 6 told the city about some of the business owners' concerns and asked whether it would extend the deadline to allow more time for businesses to transition to the online portal filing system.
On Tuesday, the city announced that businesses will now have until March 31 to file while avoiding late fees and penalties, though the deadline remains March 3.
“I like that they have gone ahead and extended it out 30 days. It should give everybody enough time to complete the forms and get them in a timely manner," Hunter said.
Catrow acknowledged that the process change will be an adjustment for some businesses, and he said the city wants to help.
"For residents who cannot access the online RVA Business Portal, we have set up Ambassador Stations on the First Floor of City Hall to provide white-glove, start-to-finish customer service to assist with filing taxes," Catrow said.
He also encouraged businesses who need additional assistance to take advantage of the following tools and resources:
- In-person and online appointments to assist business owners with the registration and filing process
- Online tutorial available on the RVA Business Portal
- Appearances at community events and district meetings (the Department of Finance will be at the upcoming 3rd District Meeting on February 25)
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
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