58.1-1803 - Department of Taxation may appoint collectors of delinquent state taxes; Contract Collector Fund established.
§ 58.1-1803. Department of Taxation may appoint collectors of delinquentstate taxes; Contract Collector Fund established.
A. The Department of Taxation may appoint a collector in any county or city,including the treasurer thereof, to collect delinquent state taxes that wereassessed at least 90 days previously therein, or elsewhere in theCommonwealth, and may allow him a reasonable compensation, to be agreed onbefore the service is commenced. Where the appointed collector is a localgovernment treasurer, any actions taken pursuant to this section shall beconsidered part of the official duties of such treasurer.
B. The Department of Taxation may appoint collectors or contract withcollection agencies to collect delinquent state taxes that were assessed atleast 90 days previously and allow reasonable compensation for such services,to be agreed on before the service is commenced. Delinquent claims for statetaxes may be assigned to collectors or collection agencies so designated forthe purpose of litigation in the Department of Taxation's name and at theDepartment of Taxation's expense.
C. Such collectors who are attorneys-at-law shall have authority to instituteactions at law or suits in equity for the recovery of state taxes. For thepurpose of this section, the term "state taxes" shall include any penaltyand interest and shall also include the local sales and use tax imposed underthe authority of §§ 58.1-605 and 58.1-606 and any penalty and interestapplicable thereto. Each collector so appointed or collection agency socontracted with shall give bond to the Commonwealth for the faithfulperformance of the duties placed upon him by this section, in a penalty to befixed by the Tax Commissioner, in whose office the bond shall be filed.Notwithstanding any other provision of law, any local government treasurer soappointed may collect any delinquent state taxes pursuant to the provisionsof Article 2 (§ 58.1-3910 et seq.) of Chapter 39 of this title. Any county orcity treasurer turning over delinquent tax tickets to any such collector inpursuance of orders issued by the Department of Taxation shall receive crediton the Comptroller's books for the amount so turned over.
D. There is hereby established a special fund in the state treasury to beknown as the Contract Collector Fund, hereinafter referred to as the Fund.All moneys collected by collectors and collection agencies appointed by orunder contract with the Department of Taxation pursuant to this section shallbe placed in the Fund. Compensation of such collectors and collectionagencies shall be paid out of the Fund on warrant of the Comptroller. TheComptroller shall transfer to the appropriate general, nongeneral, or localfund all moneys in the Fund in excess of that required to be paid to personsunder contract, as determined by the Department, no later than June 30 eachyear.
(Code 1950, § 58-997; 1984, c. 675; 1985, c. 464; 1994, c. 932; 1996, cc.362, 391; 2004, c. 546; 2007, c. 750.)