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To request that the Chief Administrative Officer cause the Director of Finance to (i) develop an implementation plan and timeline for the administration of a one-time tax amnesty program for the tax year beginning January 1, 2027, pursuant to City Code §§ 26-21-26.29, (ii) provide to Council the report required by § 26-25, and (iii) submit such plan, timeline, and report to the Council by no later than Feb. 1, 2027.
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WHEREAS, as provided in section 26-21, concerning the administration of the tax amnesty program, of the Code of the City of Richmond (2026), as amended, “As authorized by Chapter 200 of the 2010 Acts of Assembly of Virginia, as amended by Chapters 254 and 496 of the 2012 Acts of Assembly of Virginia, the Director of Finance may administer the tax amnesty program in any tax year, in accordance with this article and other applicable law, for any person, individual, corporation, estate, trust, or partnership required to file a local tax return or to pay any local tax;” and
WHEREAS, the City of Richmond assesses both penalties and interest on delinquent tax balances; and
WHEREAS, the monthly financial synopses published by the Department of Finance show persistently high delinquent balances, particularly for personal property taxes and real estate taxes; and
WHEREAS, upon the information and belief of Council, tax delinquency can result from a number of causes, including temporary financial hardship such as that caused by current macroeconomic trends; and
WHEREAS, multiple Council offices have been contacted by constituents who wish to resolve tax delinquencies but cannot afford to pay penalties and interest along with the overdue principal balance; and
WHEREAS, upon the information and belief of Council, a one-time tax amnesty program for the tax year beginning January 1, 2027, could provide relief to individuals and businesses while also collecting significant principal balances owed to the City that may otherwise remain unpaid along with accumulating penalties and interest; and
WHEREAS, it is the desire of Council to exclude transient occupancy taxes from an amnesty program to be administered for the tax year beginning January 1, 2027, considering ongoing efforts to improve collection of taxes owed in such category; and
WHEREAS, it is the opinion of Council that sufficient time and consideration is necessary to ensure a successful and cost-effective tax amnesty program;
NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
That the Council hereby requests that the Chief Administrative Officer cause the Director of Finance to (i) develop an implementation plan and timeline for the administration of a one-time tax amnesty program during for the tax year beginning January 1, 2027, pursuant to sections 26-21 through 26-29 of the Code of the City of Richmond (2026), as amended, (ii) provide to Council the report required by section 26-25, and (ii) submit such plan, timeline, and report to the Council by no later than February 1, 2027.
DATE: October 13, 2026
TO: The Honorable Members of City Council
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Maria Garnett, Council Policy Analyst
FROM: The Honorable Stephanie Lynch, Councilmember 5th District
RE: To request that the Chief Administrative Officer cause the Director of Finance to (i) develop an implementation plan and timeline for the administration of a one-time tax amnesty program for the tax year beginning January 1, 2027, pursuant to City Code §§ 26-21-26.29, (ii) provide to Council the report required by § 26-25, and (iii) submit such plan, timeline, and report to the Council by no later than Feb. 1, 2027.
CNL-2026-0091
PURPOSE: This resolution requests the Administration to develop a proposal for a one-time tax amnesty during tax year 2027 for all City taxes except for the transient occupancy tax.
BACKGROUND: The City of Richmond, through its Director of Finance, has the authority to implement tax amnesty programs pursuant to Chapter 200 of the 2010 Acts of Assembly of Virginia, as amended by Chapters 254 and 496 of the 2012 Acts of Assembly of Virginia. The City of Richmond has offered tax amnesty programs on several occasions in recent years, with the most recent occurring in 2020. Since then, our office has heard from a growing number of businesses and some seniors experiencing financial hardship due to delinquent tax obligations. In many cases, taxpayers want to become compliant but have found that accumulated penalties and interest have made repayment increasingly difficult. For example, we have worked with seniors on fixed incomes who historically qualified for the City's tax relief program but inadvertently fell out of the program. After helping them re-enroll, they later learned they had accrued significant penalties and interest during the period they were no longer receiving relief. In some instances, they were never offered a promissory note or payment agreement that could have helped them remain in good standing when re-enrolled. Another example involves small businesses that experienced significant operational disruptions during and after the COVID-19 pandemic. Throughout the pandemic, businesses navigated rapidly changing guidance, temporary closures, evolving filing deadlines, and fluctuating operating restrictions. Some business owners believed they were in compliance based on the information available at the time, only to discover years later that taxes, penalties, and interest had accumulated. More recently, some businesses have reported additional hardships stemming from the City's water crisis, during which they were forced to temporarily close or significantly reduce operations. For businesses operating on narrow profit margins, these unexpected closures further strained cash flow and made it more difficult to remain current on local tax obligations. A carefully designed, one-time tax amnesty program could provide an opportunity for otherwise compliant taxpayers to resolve outstanding obligations, return to good standing, and continue contributing to Richmond's economy.
COMMUNITY ENGAGEMENT: This resolution is informed by the aforementioned constituent and community feedback.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: Thriving City Hall; Thriving Economy
FISCAL IMPACT: There should not be a fiscal impact associated with this resolution beyond staff time spent developing a proposal for the one-time tax amnesty in 2027. Such a proposal would be informed by Department of Finance records about the success of recent tax amnesty programs, including net collection after accounting for staff time or other expenditures associated with administering the amnesty program.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: October 13, 2026
CITY COUNCIL PUBLIC HEARING DATE: November 9, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development
AFFECTED AGENCIES: Chief Administrative Officer
Department of Finance
Department of Budget and Strategic Planning
RELATIONSHIP TO EXISTING ORD. OR RES.: None
ATTACHMENTS: None
STAFF: Maria Garnett, Council Policy Analyst, (804) 298-5052