The Alexandria City Council will consider a measure to allow due date extensions for personal property tax payments from federal employees when furloughed by a government shutdown.
The item is on City Council’s Sept. 8 docket and would give federal employees impacted by a shutdown a 90-day extension to pay personal property taxes after the government reopens. The last government shutdown was from Oct. 1 to Nov. 12, 2025, making it the longest in history, and in Alexandria it coincided with the personal property tax deadline. The measure also comes as Congress recently passed a short-term funding bill to avoid a shutdown until Dec. 11.
Federal employees needing an extension would have to file with the city’s finance department. The measure is going to a City Council vote after passage of Del. Alfonso Lopez (D-3)’s House Bill 915 earlier this year by the Virginia General Assembly.
“State code requires that federal employees apply for an extension and stipulates that the extension shall end and taxes shall be due no later than ninety (90) days following the reopening of the federal government,” City staff said in a memo. “The Department of Finance anticipates using the flexible, electronic application process that it has successfully used during prior shutdowns.”
The city can also make payment plans with federal employees.
“While the law says that taxes shall be due ‘no later than 90 days following the reopening of the federal government,’ this is simply resetting the payment due date,” city staff said. “Depending on individual circumstances, Finance can still provide a payment plan from that date on a case by case basis, if necessary. The only difference is that penalties and interest would apply from that point. Based on experience, this would be the exception, not the norm.”
This year’s personal property tax rate is the same as last year at $5.33 per $100 of assessed value. Personal property tax bills were recently mailed out and are due Oct. 5, according to the city.
For late tax payments, the city issues a penalty:
Late payment penalty and interest will be assessed on all personal property taxes that are not paid or postmarked by the due date. Late payment penalty of 10% of the tax plus late filing penalty, or $10, whichever is greater will be assessed if not paid by October 5, 2026. An additional 15% penalty will be assessed (for a total penalty of 25%, or $10, whichever is greater) if paid after November 4, 2026. Interest accrues at an annual rate of 10% the first year and 5% each year thereafter.
City staff are asking City Council to pass the proposed ordinance on first reading and schedule it for a public hearing, a second reading and a vote for final passage on Sept. 19.
