Hampton candidate vying for city tax collector habitually delinquent on payments, city treasurer says
A candidate vying to be Hampton’s next tax collector has not paid her local taxes on time repeatedly in recent years.
Tammy Ishmael is seeking the Democratic nomination for city treasurer; early voting began last month and in-person voting will be June 8. The Daily Press obtained copies of payment receipts from current Treasurer Molly Ward under the Freedom of Information Act.
The stack details a history of late payments, resulting in extra administrative fees, accrued interest and other penalties tacked onto tax bills issued biannually since 2008. On top of those, the treasurer’s office relied on liens — stops on car registrations and seizing of state income tax refunds — to collect the back payments she owed.
To date, her account is current, the last set satisfied in March. Ishmael said she regularly notified the tax office when she would be late. A single mother at the time raising three sons, Ishmael said she struggled to pay her bills.
“It doesn’t change what my credentials are. I have struggled. I have overcome it, which makes me a better treasurer. It humanizes me,” she said “It speaks to the many single mothers that need help. That is why I am running. I understand what some of the citizens are going through when they are struggling to pay their taxes. I’ve also been there.”
Copies of receipts obtained dating back to 2009 show Ishmael was late every year. For the majority of those years, she also paid extra fines to satisfy motor vehicle stop registration actions. Other back taxes that were paid in years 2019, 2016 and 2014 used cash payments seized from state income tax refunds.
At least one receipt showed Ishmael was late for a year and half on payments due December 2017 and both tax payments in 2018, and did not make any payments until May 2019.
Ishmael had other debts. According to federal court records in Newport News, the candidate also filed for bankruptcy twice, in 2012 and 2014. A list of unsecured creditors included the Internal Revenue Service. Both cases have been closed. Ishmael counters that attorneys only filed once on her behalf for bankruptcy, but the lawyers had to resubmit the paperwork to the court.
Ishmael, a former federal employee with the Department of Navy, with degrees in accounting and public administration, resigned earlier this year to be eligible to run for office.
Real estate and personal property taxes are collected semi-annually. Real estate taxes and annual storm water fees are paid through escrow accounts, Lynn Fahnert, chief deputy treasurer said in an email.
The city enforces collection efforts when accounts are at least 30 days in arrears. Fees on late payments rack up quickly: a 10% penalty is added immediately. A month after the first late notification letters, an administrative fee is added, plus interest begins to accrue. Liens, if necessary, may involve garnishing wages, placing a stop on car registrations or seizing of state income tax refunds in order to collect payments.
Hampton can make payment arrangements with residents, if necessary, but cannot waive tax payments, Ward said. The Hampton department so far has collected $194.2 million in both real estate taxes and personal property taxes for the current fiscal year, Fahnert said in an email.
“The city is counting on that money,” Ward said. “We have to collect it on time to make those numbers.”
Councilwoman Chris Snead who also seeks the Democratic nomination for city treasurer, has received nearly $3,400 in campaign contributions from Ward, who is not seeking re-election. It’s money she donated that was left over from her own campaign chest, Ward confirmed.
Lisa Vernon Sparks, 757-24-4832, lvernonsparks@dailypress.com
