Legislators Insist Delinquent Taxes Be Collected

Members of the Senate Finance Committee focused on $100 million in delinquent taxes owed to the Government of the Virgin Islands during Tuesday’s budget wrap-up, at which the governor’s financial team testified to the Fiscal Year 2022 Executive Budget and the Fiscal Year 2021 Supplemental Budget.

Brent Leerdam, a tax collector with the Office of the Lieutenant Governor, said the office has “a focus on delinquencies and we are trying to move the needle on all of those, for all the years.”

But when committee members pressed Leerdam for a detailed plan of how the office was going to ensure collecting on all the delinquent accounts, he could not provide an adequate response that satisfied the committee.

“We have a number of things we do for customers to assist them with satisfying the arrears with the government,” Leerdam told senators. He said the office has several tactics used to assist customers with delinquent accounts, some as simple as calling those who owe, but also financial counseling, brochure mailers, and payment plan options.

“We call customers based on if they identify as long hanging fruit. If they have had delinquencies for multiple years or have large amounts owed to the government, we individually chase these customers and try to arrange for payment or see what we can do to move that along,” Leerdam said. He added next week the office “hopes” to post a “delinquency publication” for tax years 2015 and before.

Legislators were largely unimpressed by the office’s efforts.

“If we don’t go after individuals who owe delinquent taxes for donkey years, we are never going to improve this particular number,” Sen. Kurt Vialet said.

“This body has passed legislation waiving penalty and interest on property tax multiple times. I think what we are trying to find out is how are we aggressively going to go after that $100 million that is still on the street,” Vialet said. “Counseling, I don’t think counseling works. You’ve got to pay, and they need notification that they owe and that they have to begin to make payment … The government cannot have an entity that hasn’t paid tax for 15, 20 years and it’s just sitting there and there is no notification or anything.”