Have you failed to pay city taxes?

Good news. The city is now offering a two-month amnesty program to allow residents and businesses to pay what they owe without the interest and penalties that boost the expense.

“This is a chance for those who owe to get right with the city,” Richmond Mayor Levar M. Stoney stated in urging tax scofflaws to pay up as he launched the amnesty program Aug 15.

He noted the city needs the money to pay for “our schools, police and other vital services.”

The amnesty will last through Monday, Oct. 16, he announced.

To add encouragement, the city is offering six-month payment plans for people who need extra time to cover their debt. Taxpayers must sign up for the extended payment plan at City Hall.

Otherwise, the full amount owed has to be paid off by the Oct. 16 deadline to have amnesty.

The savings can be substantial. For someone failing to pay $100 in tax for one year, for example, the city would charge a 10 percent penalty, or $10, and interest of at least 7 percent which would add another $7. That’s an additional $17 that would be added to the bill. The second year, the penalty and interest are applied to the new total of $117.

As of June 30, the city listed $66 million in unpaid taxes on its books. Much of the tax cannot be collected because it is owed on abandoned property or by businesses that have closed.

City officials expect the amnesty to bring in $2.5 million to $6 million.

There are some caveats for the amnesty. For real estate taxes, the amnesty applies only to unpaid taxes owed on or before February 2017, including previous years.

Property owners who have not fully paid the June 2017 real estate tax bills would have to pay penalties and interest, according to Finance Director John Wack.

Also, those who did not pay personal property taxes on their cars, trucks and other vehicles will not get a reprieve, the mayor stated in his announcement.

The amnesty applies to unpaid taxes on personal property such as boats and computers that are used in businesses. It also applies to admissions taxes, hotel and meals taxes that businesses have been assessed but have not paid and to companies that have not paid business license taxes.

Details: For Richmond residents, (804) 646-3954, taxamnesty@richmondgov.com tinyurl.com/RVAtaxdeal; for businesses, (804) 646-6662 or tax.amnesty@Richmondgov.com.