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Penalty and Interest
Penalty is 10% of the net tax amount for all taxes and/or fees. Because of the Personal Property Tax Relief Act of 1998, the penalty on personal property taxes is based on the tax amount after the car tax credit.
The City Treasurer is required to mail tax bills to each taxpayer assessed with taxes as soon as reasonably possible each year, but no later than 14 days before the due date [Virginia Code §58.1-3912]. The Chesapeake City Treasurer mails all tax bills at least five weeks before the tax due date. Upon mailing, the taxpayer becomes liable for the bills. The City Treasurer is not responsible if the taxpayer does not receive their bills.
If payment is not received or postmarked by the U.S. Postal Service on or before the due date, then penalty and interest will be charged.
- A one-time penalty of 10% of the net tax amount is charged on any tax not paid in full or postmarked on or before the tax due date [Virginia Code §58.1-3915 and Chesapeake City Code §30-512 and 30-513(g)].
- Interest at the rate of 10% per annum on tax and penalty is charged on all tax bills not paid in full or postmarked on or before the tax due date [Virginia Code §58.1-3918 and Chesapeake City Code §30-512 and 30-513(g)].
Who determines the 10% penalty and interest?
Penalty and interest are determined by the Virginia General Assembly.
When can the penalty and interest be waived?
Penalty and interest will not be imposed if failure to pay any tax was due to death, medically determinable physical impairment, or medically determinable mental impairment. The taxpayer must provide proof of death, medically determinable physical impairment, or medically determinable mental impairment, and pay the taxes within thirty days of the due date. In cases where a fiduciary (legal guardian, committee, conservator) is handling an individual's affairs, the taxes must be paid within 120 days after the fiduciary qualifies or begins to act on behalf of the individual [Virginia Code §58.1-3916].