Some of Town’s Biggest Landowners Owe Back Taxes

By KAREN JOLLY DAVIS
Cape Charles Wave

July 31, 2012

Delinquent taxpayers owe the Town of Cape Charles over a quarter million dollars. And the companies that owe the most are among the largest landowners in town — Baymark Construction Corp., Bay Creek LLC, and Bay Creek Marina and Resort LLC.

“We should be caught up within 60 days,” said Oral Lambert, speaking for the Bay Creek companies. “There are many entities in our corporate group and this is just a small percentage of the total. The vast majority of the Bay Creek taxes have already been paid.”

Town Manager Heather Arcos informed the Wave that the Town collects an average of about 96 percent of taxes due each year. Delinquent real estate taxes, including penalties and interest, equal $250,856 as of July 26.

Arcos said Cape Charles uses a string of methods to collect back taxes. The Town mails bills, sends out reminder letters, and sometimes even calls the delinquent owner.  Payment plans can be arranged. And under the Town Code, officials can withhold permits until taxes are paid. 

Unpaid taxes can also stop a property’s sale. The Town can hold up a closing on the property by notifying the title company that taxes are overdue. Ultimately, the Town can put a lien on the property, and petition for sale after three years of delinquency.

Arcos notes that the Town budget could use that uncollected money. “Assuming 100 percent of current year taxes, along with a percentage if past years were collected, the [Town Council] could allocate for a specific purpose.”