WASHINGTON (Map, News) - An unexpectedly large number of Prince William County residents aren’t paying their property tax bills, which could mean even less money for the county’s already woeful budget.

“A lot of our letters, a lot of our phone calls are going unanswered,” Finance Director Chris Martino told the Board of Supervisors on Tuesday.

The problem is linked to the economy’s decline, including dramatic increases in foreclosure filings over the last year, accounting for thousands of vacant homes.

Martino raised concerns that it would be more difficult to collect the property taxes and personal property taxes countywide.

“When the economy is going well, when people are making more money, this is not a problem,” Martino said, adding it was not clear how serious the problem could be.

The county typically has a 99 percent collection rate, but has no statistics about how the delinquencies could affect its budget.

Residential property values sunk almost 15 percent last year, as the subprime mortgage debacle, credit market slump and excess building swamped the market and left thousands of homes up for sale, dropping prices.

It is one of several factors, including decreasing investment income, lower sales tax revenues and lower personal property taxes, that could make the budget forecast more precarious.

The county eventually will get its money, Martino said, but it could take years to recoup the tax bills in some cases.

The supervisors also learned Tuesday that the county’s investment income will drop significantly because of the Federal Reserve’s decision to slash a key interest rate another 0.75 percent.

Interest rates tied to the Fed’s moves are now half of what they were when the county held its first budget workshop in October.

The report came as supervisors learned of another agency struggling to meet its current-year budget projections.

Declining court revenues contributed to a $1.36 million shortfall for the office of the clerk of the Circuit Court.

The drop will require laying off three workers, eliminating a dispute-resolution program and halting annual contributions to long-term courthouse improvements.

dgenz@dcexaminer.com

Comments from Examiner Readers

8:27 PM MST on Wed., Apr. 30, 2008 re: "Businesses want better buzz, climate in Prince William Co."

Examiner Reader said:
I have never been more proud to say I live, work and play in Prince William County. We have weathered the storm of illegals who were attracted to PWC because of jobs being offered by developers and construction trades. These are the same businesses who are "the voice" of the Region's Chamber. The Region's Chamber represents fewer than 1200 businesses in a County that issued over 13,000 business licenses in 2007. The voice they refer to is one and that's the developer community. The Chamber, member developers, and bankers are no fan of Stewart because of his tough positions on controlling growth, and on businesses who hire illegal workers. Any organization that believes they're above the law is vehemently flawed.

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2:17 PM MST on Tue., Apr. 22, 2008 re: "Businesses want better buzz, climate in Prince William Co."

Examiner Reader said:
Here is some buzz you can use. The county is lowering costs to business and homeowners by way of less " Free " services for illegals. That alone will get you to pull business from California who is hemmoraging from illegal costs. Next you can now tout safer streets and not as many multi-families living next door, with the 16 hours of cat calls and crouch grabbing. Again another plus if you have a wife and daughter. You can also claim that there is less traffic, and that your the next best thing to happen close to DC As to the taxes you need to look no further than the life time county manager and maybe get on his case. You can claim your an international city as you have a comsulate, and you have a police chief who is not afraid to meet with foreign representatives of other countries. You can also say that what has taken place in PWC has been well received in other parts of the state and other cities, no go and blow your whistles

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1:48 PM MST on Tue., Apr. 22, 2008 re: "Businesses want better buzz, climate in Prince William Co."

Examiner Reader said:
This is not only unfair its slanted it is outrageous. Why of course Mark Smith is upset after all the builders were the one who benefitted from cheap and illegal labor, for many years. There were and are many great things happening. The county landed the FBI and GMU landed an Italian Bio tech company. That is not exactly cheap stuff. The Chamber needs to get in sync with reality. The many businesses who have enjoyed years of cheap labour should start to think of hiring leagal and local people. The High School kids need a break too. There is no mistake the people of the county wanted this and business should help in anyway possible. There is after all always a move to LA if PWC does not fit your needs....

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12:24 PM MST on Tue., Apr. 1, 2008 re: "Proposed property tax hike in Pr. William would net $75M in �09"

ZebraLover said:
Thanks for this article. I'm not surprised that Prince William County needs such a huge tax hike. But it seems like they're trying to chase everybody out of their county. They need to be announcing plans to bring more business into the County so people don't have to drive to other counties to find work.

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9:56 AM MST on Wed., Mar. 19, 2008 re: "Delinquencies raise concerns about tax collections"

Examiner Reader said:
Prince William County is budgeting over 6 million dollars to study the "psychological effects" on the community in going after illegal immigrants. I think Prince William County should get it priorities straight. Money first then the pie in the sky. Jean A. circle

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5:02 AM MST on Tue., Dec. 18, 2007 re: "Pr. William leans toward rejecting real estate tax hike"

Joe G. said:
I have to disagree with the reader that said, "Corey Stewart needs to look at Jurisdictions to the north not south. Stafford County, Spotsylvania County and Fauquier County are not part of Northern Virginia and their traffic is not bad as Prince William County." Why is PWC's traffic so bad? It is because of the southern counties driving up through PWC roadways to go to work in the DC area. If we closed the north-bound portion of I-95 during rush hour, you would see the back-ups taking place down south that take place here in PWC. And to the previous reader's comment, "Part of the major problem to the tax problem is illegal immigration." That is not THE major problem, but one none the less that most believe that there are no problems (if you are legal, you have nothing to worry about). Assumptions and distrust is running rampant around here. Let the cops do their jobs, clean up the streets and ask EVERYONE to prove their status and you will see some whites sue to the county.

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3:24 AM MST on Tue., Dec. 18, 2007 re: "Prince William officials may face tax rate hike proposal"

Examiner Reader said:
Part of the major problem to the tax problem is illegal immigration. They must crack down and crack down hard. Mr. Nohe is hock with the business community and their illegal workforce. He is a lot like Sharon Pandak in that he accepted a large amount of developer money for his election campaign.

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10:31 AM MST on Mon., Nov. 26, 2007 re: "Pr. William leans toward rejecting real estate tax hike"

Examiner Reader said:
Corey Stewart needs to look at Jurisdictions to the north not south. Stafford County, Spotsylvania County and Fauquier County are not part of Northern Virginia and their traffic is not bad as Prince William County.

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