Program goals are to help residents with delinquent taxes get into payment plans and reduce abandoned and blighted properties

Richmond, VA — Mayor Danny Avula and CAO Odie Donald II today announced that the City of Richmond is relaunching the Real Estate Tax Sale Program as part of its commitment to consistent and responsible tax administration. The Real Estate Tax Sale Program gives the City an important tool to collect delinquent real estate taxes and address abandoned and blighted properties, while supporting residents in resolving delinquent taxes and staying in their homes. 

In Virginia, a tax sale program is a legal process where a locality may take possession of a tax-delinquent property and put that property up for auction in an effort to recover those delinquent property taxes. It is one of the final steps in the delinquent tax collection process and is only used once all other options have been exhausted. 

Properties only become eligible for a real estate tax sale after: 

1. Taxes have remained unpaid for two full calendar years (or one year, if the property is deemed blighted, a public nuisance or derelict) 
2. Multiple notices and outreach efforts have been made, and  
3. The property meets the legal requirements established under Virginia law 

Over the past year, through June 30, 2026, the City reduced delinquent real estate taxes from $27.4 million to $14.2 million through strong collection efforts, a reduction of $13.2 million. 

After FY 2026 taxes came due, the delinquent balance then increased to about $24.2 million as of August 31, 2026. That increase reflects the addition of a new tax year, not lost ground.  

Of the $24.2 million currently delinquent, $5.4 million has passed the two-year statutory threshold and are now eligible for tax sale. Currently, Currently, 85 properties have been identified for potential tax sale, pending a review to confirm whether they meet all of the legal requirements for referral to tax sale. 

The remaining $18.8 million is not yet eligible for tax sale. That amount includes FY 2025 accounts ($5.7 million), which will not reach eligibility until after December 31, 2026, as well as FY 2026 accounts ($13.1 million) which will not reach eligibility until after December 31, 2027. These property owners still have time to enter payment plans, resolve their balances, and avoid the tax sale process.  

The relaunch of the Real Estate Tax Sale Program adds another tool to the City’s collection efforts for properties that meet the legal requirements for tax sale. “We have a responsibility to Richmond taxpayers to consistently enforce our tax laws and to work compassionately with residents who are struggling to pay,” said Mayor Danny Avula . “Our goal is to help property owners get into payment plans, and resolve delinquent taxes, whenever possible, while also addressing abandoned and blighted properties.” 

“The Real Estate Tax Sale Program is part of a broader effort to strengthen consistent, fair, and responsible administration tax collection,” said CAO Odie Donald II . “Building on our continued focus on improved service to residents, we are enhancing support and access points for Richmond property owners. This relaunch represents both a strengthening of processes and an expansion of efforts to make compliance options even more accessible.” 

"The City is committed to working with taxpayers to pay any tax liability if they reach out to us. The Tax Sale program only exists for a small group of properties that go well beyond a workable and reasonable timeframe for compliance,” said Ken Martinez, Director of Revenue Administration . “It ensures fairness in administration of taxes in Richmond and should give positive results in the City’s wider efforts to address delinquent taxes and collection." 

The City’s Department of Finance works in partnership with the City Attorney’s Office to administer the tax sales program. The City expects its first annual tax sale around June 2027, with an official relaunch timeframe of November 2027. Outreach efforts will take place before then with property owners with delinquent taxes.  

Richmond property owners with questions about delinquent real estate taxes can call 311, or visit go.rva.gov/taxsales for more information.