223 Richmonders receive incorrect personal property tax bills

RICHMOND, Va. (WRIC) -- Over 200 Richmonders received incorrect personal property tax bills, after which a city spokesperson said these bills were canceled and reissued.

According to a spokesperson for the City of Richmond, 223 people were sent incorrect personal property tax bills. Each of these bills was reportedly canceled and reissued, and new bills were reissued and both mailed and uploaded to the online portal.

The spokesperson said this error was the result of a software issue.

These taxpayers' vehicle assessments were reportedly based on the sales price instead of a JD Power value. This set of customers represents about 0.1% of total property tax bills, according to the city.

The initial bills that were sent through the online portal and the mail contained the following text: "2025 REPLACEMENT BILL: THIS IS A REVISED BILL to correct the Assessed Value of a vehicle(s) in your prior billing. PLEASE USE THIS INVOICE FOR YOUR PAYMENT PROCESSING."

The spokesperson said that impacted residents (who make up .07% of personal property taxpayers) own 2004 and 2005 model vehicles. At 20 years of age, some assessments of a vehicle's value go from being provided by JD Power to using the sales price reported by the Virginia Department of Motor Vehicles (DMV), with a lower depreciation factor -- with a floor of $100. 

The city's Department of Finance recently improved its processes, which entailed a revamping of the assessment process to use JD Power at the specific Vehicle Identification Number (VIN) level rather than the previous process involving a generic year, make and model assessment, with data from the National Automobile Dealers' Association (NADA). This reportedly makes for a "much more accurate" assessment value.

The DMV has also improved its process, including automation, an in-depth data cleanup and implementation of over 200 new quality control checkpoints in the last 12 months.

The spokesperson said that when the city's Department of Finance first heard reports of the issue from two customers, it began to look into it further and then implemented those solutions.

These incorrect bills follow an issue where thousands of Richmond residents received tax rebate checks with the wrong names on them. That issue won't be resolved until the end of June, city officials said.

The department currently has a 1% correction rate for personal property tax bills, according to a spokesperson, down from 2 to 3% last year. This reportedly includes corrections like needing to update a bill with a new address or the vehicle's owner.

Residents can pay their personal property tax bills, due June 5, through the city's website. Folks can now pay with a credit card without paying a convenience fee.