{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3018.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3018.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3018.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3018.html"}],"law_id":83660,"edition_id":1,"section_id":83660,"structure_id":14342,"section_number":"58.1-3018","catch_line":"Payment of local taxes on behalf of taxpayer by third party; tax payment agreements","history":"1996, c. 896; 1997, cc. 180, 846; 2015, c. 257.","full_text":"A\n\nFor the purposes of this section, “third-party tax payment agreement” means any agreement whereby a third party contracts with a taxpayer to pay to a county, city or town on behalf of that taxpayer the local taxes, charges, fees or other obligations due and owing to the county, city or town. Such agreement may have as its subject current taxes, charges, fees and obligations, delinquent taxes, penalties and interest, or any combination of the foregoing.B\n\nThe treasurer of any county, city or town may enter into agreements authorizing third parties to offer to taxpayers within such locality third-party tax payment agreements, provided that such agreements meet the following requirements:1\n\nEvery third-party tax payment agreement shall be in writing, in a form approved by the treasurer of the locality, and shall provide for the payment of the taxes which are the subject of such agreement by the third party directly to the treasurer of the county, city or town within ten days of the acceptance of a duly executed agreement by the third party.2\n\nThird-party tax payment agreements shall provide for the reimbursement of the third party by the taxpayer on whose behalf taxes were paid in installments over a period not to exceed ninety-six months, and may provide for interest, exclusive of any origination fee, at an annual rate approved by the treasurer which shall not exceed sixteen percent. Such agreements may provide for the payment by the taxpayer of an origination fee at a rate approved by the treasurer which shall not exceed ten percent of the amount paid by the third party. No interest, excluding any origination fee paid by the taxpayer, shall accrue during the six-month period commencing on the date of the payment. This subdivision shall not be construed to permit the treasurer to authorize a third party to make a “mortgage loan” as that term is defined in § 6.2-1600.3\n\nNo fee may be charged to or collected from the treasurer or the locality with respect to any third-party tax payment agreement.4\n\nThe third party shall provide to the treasurer monthly status reports regarding third-party tax payment agreements entered into by taxpayers of the locality. Such reports shall include, at a minimum, a listing of all active accounts, and with respect to each account, total charges, total taxpayer payments, total amounts paid to the treasurer, and total amounts subject to recourse. A summary of the monthly report, deleting any information that would identify any taxpayer and any other confidential taxpayer information, shall be retained as a public record in the treasurer’s office.C\n\nIn the event that a taxpayer who is a party to a third-party tax payment agreement fails in his obligations arising under such agreement to reimburse the third party:1\n\nThe third party shall be entitled to receive from the treasurer a reimbursement payment equal to all taxes paid on behalf of such taxpayer pursuant to the tax payment agreement, less all payments received by the third party from the taxpayer, exclusive of interest and fees charged by the third party to the taxpayer pursuant to the agreement. No payment may be requested pursuant to this subsection unless the third party has demonstrated to the satisfaction of the treasurer that good-faith efforts to collect the obligations arising under the tax payment agreement have been made and that, notwithstanding these efforts, the taxpayer is more than thirty days delinquent in his obligations arising under the agreement.2\n\nAny treasurer who reimburses a third party pursuant to this subsection shall reinstate the amount of such reimbursement upon the appropriate tax rolls of the locality as delinquent taxes or current taxes, as the case may be, and shall send the taxpayer written notice of such action by first-class mail to the taxpayer’s last known address within five business days of such reinstatement.3\n\nIf the taxpayer fails to pay in full any sum reinstated pursuant to this section by the ordinary due date of the tax, the treasurer may apply penalties and interest in accordance with general law from the due date of the tax.4\n\nAny right of the third party to payment arising under a third-party tax payment agreement shall terminate upon the receipt by the third party of a reimbursement payment from the treasurer in accordance with the terms of this subsection.D\n\nWith respect to each third-party tax payment agreement which has as its subject, in whole or in part, real property taxes, the third party shall cause to be recorded among the land records of the circuit court in each locality within which the real property is situated a copy of the applicable tax payment agreement. Such agreement shall be indexed by the clerk under the name of the taxpayer or taxpayers as grantor and the name of the third party as grantee. Upon the satisfaction of all obligations arising under a tax payment agreement so recorded, the third party, within ninety days of satisfaction, shall cause to be recorded a certificate of release, setting forth the names of the taxpayer and the third party, the date of the third-party tax payment agreement, and the book and page at which the agreement is recorded. Any such certificate of release shall be indexed by the clerk under the name of the third party as grantor and the taxpayer as grantee. The clerk may charge a fee not to exceed thirteen dollars for the recordation of any tax payment agreement or certificate of release.E\n\nUpon the payment of any tax by a third party pursuant to a tax payment agreement, the applicable period of limitation for the enforcement of each tax which is the subject of the agreement shall be tolled during any period in which outstanding obligations remain unsatisfied pursuant to the agreement.","order_by":null,"text":{"0":{"id":299852,"text":"For the purposes of this section, “third-party tax payment agreement” means any agreement whereby a third party contracts with a taxpayer to pay to a county, city or town on behalf of that taxpayer the local taxes, charges, fees or other obligations due and owing to the county, city or town. Such agreement may have as its subject current taxes, charges, fees and obligations, delinquent taxes, penalties and interest, or any combination of the foregoing.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":299853,"text":"The treasurer of any county, city or town may enter into agreements authorizing third parties to offer to taxpayers within such locality third-party tax payment agreements, provided that such agreements meet the following requirements:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":299854,"text":"Every third-party tax payment agreement shall be in writing, in a form approved by the treasurer of the locality, and shall provide for the payment of the taxes which are the subject of such agreement by the third party directly to the treasurer of the county, city or town within ten days of the acceptance of a duly executed agreement by the third party.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":299855,"text":"Third-party tax payment agreements shall provide for the reimbursement of the third party by the taxpayer on whose behalf taxes were paid in installments over a period not to exceed ninety-six months, and may provide for interest, exclusive of any origination fee, at an annual rate approved by the treasurer which shall not exceed sixteen percent. Such agreements may provide for the payment by the taxpayer of an origination fee at a rate approved by the treasurer which shall not exceed ten percent of the amount paid by the third party. No interest, excluding any origination fee paid by the taxpayer, shall accrue during the six-month period commencing on the date of the payment. This subdivision shall not be construed to permit the treasurer to authorize a third party to make a “mortgage loan” as that term is defined in § 6.2-1600.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":299856,"text":"No fee may be charged to or collected from the treasurer or the locality with respect to any third-party tax payment agreement.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":299857,"text":"The third party shall provide to the treasurer monthly status reports regarding third-party tax payment agreements entered into by taxpayers of the locality. Such reports shall include, at a minimum, a listing of all active accounts, and with respect to each account, total charges, total taxpayer payments, total amounts paid to the treasurer, and total amounts subject to recourse. A summary of the monthly report, deleting any information that would identify any taxpayer and any other confidential taxpayer information, shall be retained as a public record in the treasurer’s office.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":299858,"text":"In the event that a taxpayer who is a party to a third-party tax payment agreement fails in his obligations arising under such agreement to reimburse the third party:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"7":{"id":299859,"text":"The third party shall be entitled to receive from the treasurer a reimbursement payment equal to all taxes paid on behalf of such taxpayer pursuant to the tax payment agreement, less all payments received by the third party from the taxpayer, exclusive of interest and fees charged by the third party to the taxpayer pursuant to the agreement. No payment may be requested pursuant to this subsection unless the third party has demonstrated to the satisfaction of the treasurer that good-faith efforts to collect the obligations arising under the tax payment agreement have been made and that, notwithstanding these efforts, the taxpayer is more than thirty days delinquent in his obligations arising under the agreement.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"8":{"id":299860,"text":"Any treasurer who reimburses a third party pursuant to this subsection shall reinstate the amount of such reimbursement upon the appropriate tax rolls of the locality as delinquent taxes or current taxes, as the case may be, and shall send the taxpayer written notice of such action by first-class mail to the taxpayer’s last known address within five business days of such reinstatement.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"9":{"id":299861,"text":"If the taxpayer fails to pay in full any sum reinstated pursuant to this section by the ordinary due date of the tax, the treasurer may apply penalties and interest in accordance with general law from the due date of the tax.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"10":{"id":299862,"text":"Any right of the third party to payment arising under a third-party tax payment agreement shall terminate upon the receipt by the third party of a reimbursement payment from the treasurer in accordance with the terms of this subsection.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"11":{"id":299863,"text":"With respect to each third-party tax payment agreement which has as its subject, in whole or in part, real property taxes, the third party shall cause to be recorded among the land records of the circuit court in each locality within which the real property is situated a copy of the applicable tax payment agreement. Such agreement shall be indexed by the clerk under the name of the taxpayer or taxpayers as grantor and the name of the third party as grantee. Upon the satisfaction of all obligations arising under a tax payment agreement so recorded, the third party, within ninety days of satisfaction, shall cause to be recorded a certificate of release, setting forth the names of the taxpayer and the third party, the date of the third-party tax payment agreement, and the book and page at which the agreement is recorded. Any such certificate of release shall be indexed by the clerk under the name of the third party as grantor and the taxpayer as grantee. The clerk may charge a fee not to exceed thirteen dollars for the recordation of any tax payment agreement or certificate of release.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4","next_prefix":"E"},"12":{"id":299864,"text":"Upon the payment of any tax by a third party pursuant to a tax payment agreement, the applicable period of limitation for the enforcement of each tax which is the subject of the agreement shall be tolled during any period in which outstanding obligations remain unsatisfied pursuant to the agreement.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14342,"edition_id":1,"name":"General Provisions","identifier":"30","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:47:48","date_modified":"2026-06-26 03:47:48","permalink":{"id":256461,"object_type":"structure","relational_id":14342,"identifier":"30","token":"58.1\/III\/30","url":"\/58.1\/III\/30\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65297,"structure_id":14342,"section_number":"58.1-3000","catch_line":"Real estate, mineral lands, tangible personal property and merchants' capital subject to local taxation only","url":"\/58.1-3000\/","token":"58.1\/III\/30\/58.1-3000","metadata":false},{"id":86766,"structure_id":14342,"section_number":"58.1-3001","catch_line":"When boards of supervisors to fix and order county and district taxes; funds not available, allocated, etc., until appropriated","url":"\/58.1-3001\/","token":"58.1\/III\/30\/58.1-3001","metadata":false},{"id":83301,"structure_id":14342,"section_number":"58.1-3002","catch_line":"Levy by board for court allowances","url":"\/58.1-3002\/","token":"58.1\/III\/30\/58.1-3002","metadata":false},{"id":73950,"structure_id":14342,"section_number":"58.1-3003","catch_line":"Appeal from order of levy","url":"\/58.1-3003\/","token":"58.1\/III\/30\/58.1-3003","metadata":false},{"id":76950,"structure_id":14342,"section_number":"58.1-3004","catch_line":"Duty of clerk of board in case of appeal; how appeal tried","url":"\/58.1-3004\/","token":"58.1\/III\/30\/58.1-3004","metadata":false},{"id":57439,"structure_id":14342,"section_number":"58.1-3005","catch_line":"Cities and towns to make city and town levies; funds not available, allocated, etc., until appropriated","url":"\/58.1-3005\/","token":"58.1\/III\/30\/58.1-3005","metadata":false},{"id":66101,"structure_id":14342,"section_number":"58.1-3006","catch_line":"Additional tax to pay interest and retire bonds","url":"\/58.1-3006\/","token":"58.1\/III\/30\/58.1-3006","metadata":false},{"id":75899,"structure_id":14342,"section_number":"58.1-3007","catch_line":"Notice prior to increase of local tax levy; hearing","url":"\/58.1-3007\/","token":"58.1\/III\/30\/58.1-3007","metadata":false},{"id":68950,"structure_id":14342,"section_number":"58.1-3008","catch_line":"Different rates of levy on different classes of property","url":"\/58.1-3008\/","token":"58.1\/III\/30\/58.1-3008","metadata":false},{"id":65592,"structure_id":14342,"section_number":"58.1-3009","catch_line":"Tax on payrolls prohibited","url":"\/58.1-3009\/","token":"58.1\/III\/30\/58.1-3009","metadata":false},{"id":74891,"structure_id":14342,"section_number":"58.1-3010","catch_line":"Counties, cities and towns may levy taxes on fiscal year basis of July 1 through June 30, and change rate of levy during fiscal year","url":"\/58.1-3010\/","token":"58.1\/III\/30\/58.1-3010","metadata":false},{"id":59599,"structure_id":14342,"section_number":"58.1-3011","catch_line":"Use of July 1 as effective date of assessment","url":"\/58.1-3011\/","token":"58.1\/III\/30\/58.1-3011","metadata":false},{"id":58460,"structure_id":14342,"section_number":"58.1-3012","catch_line":"Counties, cities and towns may change rate of tax during calendar year","url":"\/58.1-3012\/","token":"58.1\/III\/30\/58.1-3012","metadata":false},{"id":65349,"structure_id":14342,"section_number":"58.1-3013","catch_line":"Repealed","url":"\/58.1-3013\/","token":"58.1\/III\/30\/58.1-3013","metadata":false},{"id":64725,"structure_id":14342,"section_number":"58.1-3014","catch_line":"Relief from taxes in cases of disaster","url":"\/58.1-3014\/","token":"58.1\/III\/30\/58.1-3014","metadata":false},{"id":55650,"structure_id":14342,"section_number":"58.1-3015","catch_line":"To whom property generally shall be taxed and by whom listed","url":"\/58.1-3015\/","token":"58.1\/III\/30\/58.1-3015","metadata":false},{"id":87105,"structure_id":14342,"section_number":"58.1-3016","catch_line":"Retention of property for payment of taxes","url":"\/58.1-3016\/","token":"58.1\/III\/30\/58.1-3016","metadata":false},{"id":57741,"structure_id":14342,"section_number":"58.1-3017","catch_line":"Disclosure of social security account numbers for local tax administration purposes","url":"\/58.1-3017\/","token":"58.1\/III\/30\/58.1-3017","metadata":false},{"id":83660,"structure_id":14342,"section_number":"58.1-3018","catch_line":"Payment of local taxes on behalf of taxpayer by third party; tax payment agreements","url":"\/58.1-3018\/","token":"58.1\/III\/30\/58.1-3018","metadata":false},{"id":78950,"structure_id":14342,"section_number":"58.1-3019","catch_line":"Local tax credits for approved local volunteer activities","url":"\/58.1-3019\/","token":"58.1\/III\/30\/58.1-3019","metadata":false}],"previous_section":{"id":57741,"structure_id":14342,"section_number":"58.1-3017","catch_line":"Disclosure of social security account numbers for local tax administration purposes","url":"\/58.1-3017\/","token":"58.1\/III\/30\/58.1-3017","metadata":false},"next_section":{"id":78950,"structure_id":14342,"section_number":"58.1-3019","catch_line":"Local tax credits for approved local volunteer activities","url":"\/58.1-3019\/","token":"58.1\/III\/30\/58.1-3019","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3018\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapter 896<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1997, chapters 180<\/a> and 846<\/a>; in 2015, chapter 257<\/a>.<\/p>","references":[{"id":63345,"section_number":"6.2-303","catch_line":"Contracts for more than legal rate of interest","order_by":null,"url":"\/6.2-303\/"}],"refers_to":false,"permalink":{"id":256535,"object_type":"law","relational_id":83660,"identifier":"58.1-3018","token":"58.1\/III\/30\/58.1-3018","url":"\/58.1-3018\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3018\/","token":"58.1\/III\/30\/58.1-3018","dublin_core":{"Title":"Payment of local taxes on behalf of taxpayer by third party; tax payment agreements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3018","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For the purposes of this section, “third-party<\/span> tax payment agreement<\/span>” means any agreement whereby a third party<\/span> contracts<\/span> with a taxpayer<\/span> to pay to a county, city or town on behalf of that taxpayer<\/span> the local taxes, charges, fees or other obligations due and owing to the county, city or town. Such agreement may have as its subject current taxes, charges, fees and obligations, delinquent taxes, penalties and interest, or any combination of the foregoing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The treasurer of any county, city or town may enter into agreements authorizing third parties to offer to taxpayers<\/span> within such locality third-party<\/span> tax payment agreements<\/span>, provided that such agreements meet the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Every third-party<\/span> tax payment agreement<\/span> shall be in writing, in a form approved by the treasurer of the locality, and shall provide for the payment of the taxes which are the subject of such agreement by the third party<\/span> directly to the treasurer of the county, city or town within ten days of the acceptance of a duly executed agreement by the third party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Third-party<\/span> tax payment agreements<\/span> shall provide for the reimbursement of the third party<\/span> by the taxpayer<\/span> on whose behalf taxes were paid in installments over a period not to exceed ninety-six months, and may provide for interest, exclusive of any origination fee, at an annual rate approved by the treasurer which shall not exceed sixteen percent. Such agreements may provide for the payment by the taxpayer<\/span> of an origination fee at a rate approved by the treasurer which shall not exceed ten percent of the amount paid by the third party<\/span>. No interest, excluding any origination fee paid by the taxpayer<\/span>, shall accrue during the six-month period commencing on the date of the payment. This subdivision shall not be construed to permit the treasurer to authorize a third party<\/span> to make a “mortgage loan” as that term is defined in § 6.2-1600<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No fee may be charged to or collected from the treasurer or the locality with respect to any third-party<\/span> tax payment agreement<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The third party<\/span> shall provide to the treasurer monthly status reports regarding third-party<\/span> tax payment agreements<\/span> entered into by taxpayers<\/span> of the locality. Such reports shall include, at a minimum, a listing of all active accounts, and with respect to each account, total charges, total taxpayer<\/span> payments, total amounts paid to the treasurer, and total amounts subject to recourse. A summary of the monthly report, deleting any information that would identify any taxpayer<\/span> and any other confidential taxpayer<\/span> information, shall be retained as a public record in the treasurer’s office. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In the event that a taxpayer<\/span> who is a party<\/span> to a third-party<\/span> tax payment agreement<\/span> fails in his obligations arising under such agreement to reimburse the third party<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The third party<\/span> shall be entitled to receive from the treasurer a reimbursement payment equal to all taxes paid on behalf of such taxpayer<\/span> pursuant to the tax payment agreement, less all payments received by the third party<\/span> from the taxpayer<\/span>, exclusive of interest and fees charged by the third party<\/span> to the taxpayer<\/span> pursuant to the agreement. No payment may be requested pursuant to this subsection unless the third party<\/span> has demonstrated to the satisfaction of the treasurer that good-faith efforts to collect the obligations arising under the tax payment agreement have been made and that, notwithstanding these efforts, the taxpayer<\/span> is more than thirty days delinquent in his obligations arising under the agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any treasurer who reimburses a third party<\/span> pursuant to this subsection shall reinstate the amount of such reimbursement upon the appropriate tax rolls of the locality as delinquent taxes or current taxes, as the case may be, and shall send the taxpayer<\/span> written notice of such action by first-class mail to the taxpayer<\/span>’s last known address within five business days of such reinstatement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the taxpayer<\/span> fails to pay in full any sum reinstated pursuant to this section by the ordinary due date of the tax, the treasurer may apply penalties and interest in accordance with general law<\/span> from the due date of the tax. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any right of the third party<\/span> to payment arising under a third-party<\/span> tax payment agreement<\/span> shall terminate upon the receipt by the third party<\/span> of a reimbursement payment from the treasurer in accordance with the terms of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> With respect to each third-party<\/span> tax payment agreement<\/span> which has as its subject, in whole or in part, real property taxes, the third party<\/span> shall cause to be recorded among the land records of the circuit<\/span> court<\/span> in each locality within which the real property is situated a copy of the applicable tax payment agreement. Such agreement shall be indexed by the clerk under the name of the taxpayer<\/span> or taxpayers<\/span> as grantor and the name of the third party<\/span> as grantee. Upon the satisfaction of all obligations arising under a tax payment agreement so recorded, the third party<\/span>, within ninety days of satisfaction, shall cause to be recorded a certificate of release, setting forth the names of the taxpayer<\/span> and the third party<\/span>, the date of the third-party<\/span> tax payment agreement<\/span>, and the book and page at which the agreement is recorded. Any such certificate of release shall be indexed by the clerk under the name of the third party<\/span> as grantor and the taxpayer<\/span> as grantee. The clerk may charge a fee not to exceed thirteen dollars for the recordation of any tax payment agreement or certificate of release. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Upon the payment of any tax by a third party<\/span> pursuant to a tax payment agreement, the applicable period of limitation for the enforcement of each tax which is the subject of the agreement shall be tolled during any period in which outstanding obligations remain unsatisfied pursuant to the agreement. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPAYMENT OF LOCAL TAXES ON BEHALF OF TAXPAYER BY THIRD PARTY; TAX PAYMENT\nAGREEMENTS (\u00a7 58.1-3018)\n\nA. For the purposes of this section, “third-party tax payment\nagreement” means any agreement whereby a third party contracts with a\ntaxpayer to pay to a county, city or town on behalf of that taxpayer the local\ntaxes, charges, fees or other obligations due and owing to the county, city or\ntown. Such agreement may have as its subject current taxes, charges, fees and\nobligations, delinquent taxes, penalties and interest, or any combination of the\nforegoing.\n\nB. The treasurer of any county, city or town may enter into agreements\nauthorizing third parties to offer to taxpayers within such locality third-party\ntax payment agreements, provided that such agreements meet the following\nrequirements:\n\n 1. Every third-party tax payment agreement shall be in writing, in a form\n approved by the treasurer of the locality, and shall provide for the payment\n of the taxes which are the subject of such agreement by the third party\n directly to the treasurer of the county, city or town within ten days of the\n acceptance of a duly executed agreement by the third party.\n\n 2. Third-party tax payment agreements shall provide for the reimbursement of\n the third party by the taxpayer on whose behalf taxes were paid in\n installments over a period not to exceed ninety-six months, and may provide\n for interest, exclusive of any origination fee, at an annual rate approved by\n the treasurer which shall not exceed sixteen percent. Such agreements may\n provide for the payment by the taxpayer of an origination fee at a rate\n approved by the treasurer which shall not exceed ten percent of the amount\n paid by the third party. No interest, excluding any origination fee paid by\n the taxpayer, shall accrue during the six-month period commencing on the date\n of the payment. This subdivision shall not be construed to permit the\n treasurer to authorize a third party to make a “mortgage loan” as\n that term is defined in § 6.2-1600.\n\n 3. No fee may be charged to or collected from the treasurer or the locality\n with respect to any third-party tax payment agreement.\n\n 4. The third party shall provide to the treasurer monthly status reports\n regarding third-party tax payment agreements entered into by taxpayers of the\n locality. Such reports shall include, at a minimum, a listing of all active\n accounts, and with respect to each account, total charges, total taxpayer\n payments, total amounts paid to the treasurer, and total amounts subject to\n recourse. A summary of the monthly report, deleting any information that would\n identify any taxpayer and any other confidential taxpayer information, shall\n be retained as a public record in the treasurer’s office.\n\nC. In the event that a taxpayer who is a party to a third-party tax payment\nagreement fails in his obligations arising under such agreement to reimburse the\nthird party:\n\n 1. The third party shall be entitled to receive from the treasurer a\n reimbursement payment equal to all taxes paid on behalf of such taxpayer\n pursuant to the tax payment agreement, less all payments received by the third\n party from the taxpayer, exclusive of interest and fees charged by the third\n party to the taxpayer pursuant to the agreement. No payment may be requested\n pursuant to this subsection unless the third party has demonstrated to the\n satisfaction of the treasurer that good-faith efforts to collect the\n obligations arising under the tax payment agreement have been made and that,\n notwithstanding these efforts, the taxpayer is more than thirty days\n delinquent in his obligations arising under the agreement.\n\n 2. Any treasurer who reimburses a third party pursuant to this subsection\n shall reinstate the amount of such reimbursement upon the appropriate tax\n rolls of the locality as delinquent taxes or current taxes, as the case may\n be, and shall send the taxpayer written notice of such action by first-class\n mail to the taxpayer’s last known address within five business days of\n such reinstatement.\n\n 3. If the taxpayer fails to pay in full any sum reinstated pursuant to this\n section by the ordinary due date of the tax, the treasurer may apply penalties\n and interest in accordance with general law from the due date of the tax.\n\n 4. Any right of the third party to payment arising under a third-party tax\n payment agreement shall terminate upon the receipt by the third party of a\n reimbursement payment from the treasurer in accordance with the terms of this\n subsection.\n\nD. With respect to each third-party tax payment agreement which has as its\nsubject, in whole or in part, real property taxes, the third party shall cause\nto be recorded among the land records of the circuit court in each locality\nwithin which the real property is situated a copy of the applicable tax payment\nagreement. Such agreement shall be indexed by the clerk under the name of the\ntaxpayer or taxpayers as grantor and the name of the third party as grantee.\nUpon the satisfaction of all obligations arising under a tax payment agreement\nso recorded, the third party, within ninety days of satisfaction, shall cause to\nbe recorded a certificate of release, setting forth the names of the taxpayer\nand the third party, the date of the third-party tax payment agreement, and the\nbook and page at which the agreement is recorded. Any such certificate of\nrelease shall be indexed by the clerk under the name of the third party as\ngrantor and the taxpayer as grantee. The clerk may charge a fee not to exceed\nthirteen dollars for the recordation of any tax payment agreement or certificate\nof release.\n\nE. Upon the payment of any tax by a third party pursuant to a tax payment\nagreement, the applicable period of limitation for the enforcement of each tax\nwhich is the subject of the agreement shall be tolled during any period in which\noutstanding obligations remain unsatisfied pursuant to the agreement.\n\nHISTORY: 1996, c. 896; 1997, cc. 180, 846; 2015, c. 257.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}