Norfolk officials spar over business tax payments | HamptonRoads ...

NORFOLK

Commissioner of Revenue Sharon McDonald has allowed about 20 businesses to pay their business license taxes in installments that for some stretch out over a year.

Treasurer Thomas W. Moss Jr. calls the practice illegal and might ask the courts to intervene.

The payment plans have allowed the businesses, some of which have contributed to McDonald's political action committee, to save money by paying interest but not penalties.

Norfolk businesses are supposed to pay their license tax in full by March 1. According to Moss, it's the city treasurer - not commissioner of revenue - who has the authority to offer late payment plans.

Chesapeake Commissioner of Revenue Ray Conner is the only other commissioner in South Hampton Roads who negotiates payment plans, a duty he said is spelled out in the Chesapeake city code. Others said they do so largely only when taxes are appealed.

McDonald said Moss and his staff have been aware of the payment plans for years.

Moss denied that, saying he learned McDonald was approving installments only this summer when he heard of a car dealer being granted a payment plan.

McDonald defends the practice, saying it helps struggling Norfolk businesses to stay afloat. She said the practice dates to the late Sam Barfield, who retired as commissioner of revenue 12 years ago.

"I'm a firm believer that the easier you make it for people to pay their taxes, the better off we're going to be as a city," she said. "I'd love to be able to see everyone have the option of having a payment plan.

"That's obviously not my decision. That's the treasurer's decision."

Gary Owens, a license inspector in the commissioner's office, said he oversaw payment plans under Barfield. "They were doing payment plans when I came here 23 years ago," Owens said.

Replied Moss: "What difference does it make how long it's been going on? That doesn't make it right."

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