THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, May 24, 1996                  TAG: 9605220167
SECTION: CHESAPEAKE CLIPPER      PAGE: 18   EDITION: FINAL 
SOURCE: BY ELIZABETH THIEL, STAFF WRITER 
                                            LENGTH:   31 lines

CITY WON'T COLLECT PROPERTY TAXES ON SOME OLDER CARS

The cost of owning an old car just got cheaper.

The city is no longer collecting personal property taxes from people who owe less than $15 in a calendar year.

``We feel like it costs more money to try to collect these small bills than the benefit you receive from the revenue,'' said City Treasurer Barbara O. Carraway.

Carraway estimates the city received about $123,500 last year from small property tax bills - nearly 23,000 bills in all.

She estimates it cost almost $121,000 in direct and indirect expenses - printing, postage, staff time - to bill for and collect the minor debts. That means the city was making only about $2,500.

Carraway is required by state law to pursue people who don't pay small bills as vigorously as she pursues people who ignore big tax debts.

It wasn't worth the staff's time, she said. And taxpayers didn't like being hounded for such small amounts.

Citizens, she said, ``really get aggravated: `Why don't you go for the bigger bills and leave the little ones alone?' ''

The new system will allow her staff to concentrate on the more egregious cases.

Carraway said the new policy was approved by City Council last August and went into effect this year. Carraway's staff last month mailed personal property tax bills for items like cars, boats and boat trailers.

``It is good for someone who's on a fixed income,'' she said. by CNB