City revenue director resigns after more problems with tax rebate checks
Richmond's director of revenue resigned last week after city officials learned of more errors that have hampered the city's efforts to give Richmond property owners back some tax money they've already paid.
A month ago, the city announced a mailing error had resulted in thousands of erroneous checks to be sent out payable to an entity called "Hartshorn Community Council." On Monday — as questions swirled about the status of checks residents still weren't seeing in their mailboxes — the city announced it had found several more problems that were delaying the process.
Some valid checks were accidentally cancelled, leading them to bounce when residents tried to get the money. Others were sent to the current owners of property that has changed hands since 2024, instead of to the previous owner who actually paid the taxes subject to the rebate. Another 156 checks were issued for land parcels that didn't exist in 2024.
The one-time rebate checks, funded by surplus money from the fiscal 2024 budget year that ended last June, will vary based on property values. For the average homeowner with a property worth $366,163, it would work out to roughly $150.
Officials didn't provide a number for how many checks might have already bounced. They also did not say why the city waited a week to announce the resignation of former revenue director Jamie Atkinson, who resigned April 21.
The city has been in the middle of a contentious budget season, with Mayor Danny Avula's administration pushing for across-the-board, 3.25% raises for city employees. Several City Council members have questioned giving even higher pay to top City Hall officials, a conversation that has touched on the broader question of whether ever-growing salaries will improve City Hall's performance or add to the perception that there's little accountability for the city's at-times lackluster service.
The news about Atkinson's departure and the broader problems with the tax rebate checks came out hours after the council decided to back Avula's proposal for across-the-board raises.
During a council meeting Monday afternoon, Councilor Kenya Gibson (3rd District) asked for an update on the checks, saying she was getting reports about checks not arriving or possibly bouncing.
Interim Chief Administrative Officer Sabrina Joy-Hogg said city finance officials “ordered a stop” to the rebates last month after the city sent out an estimated 8,300 checks that were addressed to the wrong recipient. Officials are still looking into the situation, Joy-Hogg said, to ensure the checks go out correctly.
“They’re doing their due diligence now on all of that,” Joy-Hogg said.
The city issued stop orders on the erroneous checks in order to prevent them from being cashed. Joy-Hogg said Monday that some valid checks might also have been affected by the stop order, effectively voiding money residents were previously told they could deposit or cash without any problems.
“Some correct ones may have gotten caught in that,” Joy-Hogg said. “So if someone did get a stop payment but it was a valid check, they should contact Finance and we will reimburse them for any bank fees.”
Joy-Hogg didn't mention Atkinson's resignation when during her answer to the council. In a news release, the city said Finance Director Sheila White — who was in the spotlight last year over the city's meals tax controversy — "will now directly oversee the the process to issue the remaining rebate checks."
Joy-Hogg said White is “almost done” with her audit of the process, and will proceed with the mailing of the correct checks once it’s complete.
Contact Reporter Graham Moomaw at gmoomaw@richmonder.org
