Richmond Revived Municipal Real Estate Tax Sale Program
City officials announced the return of property seizures to address $32 million in unpaid real estate taxes.
Updated on Sept. 28, 2026 in Residential
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Richmond has officially moved to restart its municipal tax sale program after suspending operations in January 2023. The city is currently targeting 85 properties for potential seizure to address significant delinquent tax debt.
Why it matters
The program aims to recover millions in overdue revenue while simultaneously targeting blighted or abandoned properties that impact community housing. By reviving the initiative, officials hope to fund rising government costs through the collection of long-term unpaid debts.
Property owners currently owe the city $32 million in overdue real estate taxes, with more than $24 million of that amount unpaid for six months or longer. Over 7,600 individual accounts are eligible for the sale program, which typically sees 85% of cases resolved before an auction occurs.
The players
City Attorney's Office
This local government department manages the legal proceedings for municipal property tax collections and seizure actions.
The details
The City Attorney's Office has opened seizure cases for 85 specific properties, following a process that includes sending delinquency notices and offering owners payment plans. Properties currently identified as unbuildable or involved in bankruptcy proceedings remain ineligible for the auction process.
Timeline
The city suspended the tax sale program in January 2023.
Officials announced the revival of the tax sale program on September 28, 2026.
The program is scheduled to officially resume in November 2026.
$5.7 million in additional delinquent debt becomes eligible for sale on December 31, 2026.
The first property auction is expected to take place in June 2027.
Roadmap
The city's revival of the program follows the legal framework established by Virginia state property seizure laws, which permit the city to initiate seizures after two years of nonpayment. This shift marks a return to aggressive fiscal enforcement to address years of accumulated municipal debt.
Property owners with outstanding tax balances should expect to receive formal notices and potential offers for payment plans as the city initiates new collection efforts. Residents living near abandoned or blighted properties may see changes in ownership as the city moves to resolve these long-standing delinquent accounts.
The takeaway
This revival emphasizes the importance of maintaining current tax filings to avoid potential property seizure. Property owners are encouraged to engage early with the city to establish payment plans and avoid the auction process.
What happens next
The program is scheduled to officially resume in November 2026, followed by the first property auction expected in June 2027.
Further reading
Learn more about local property market trends in the Richmond Residential section.
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Should your local government prioritize property tax collection over individual housing stability?
