RICHMOND, July 31 -- Retired U.S. Army Col. Thomas G. Adcock filed his state tax return in April, in plenty of time to use his refund check of just over $7,000 to pay his Fairfax County property tax bill in July. Or so he thought.

But Adcock's check hasn't arrived yet. And he is not alone, as tens of thousands of Virginia taxpayers prepare for month four of their wait for refund checks. Virginia's Department of Taxation, once renowned for its efficiency, is backed up so badly that officials are telling taxpayers not to count on their refunds until September.

State lawmakers and local revenue commissioners call the delays the worst in memory. And the continuing problems are keeping alive speculation that the problem is somehow tied to the state's budget impasse and the growing cost of Gov. James S. Gilmore III's plan to repeal the car tax.

Adcock, 66, just wants his refund. "When the state sits on your money, it creates some hardship," he said.

State officials blame a new scanning system and a high number of errors by taxpayers confused by the redesign of a popular tax form. Of Virginia's 3 million tax returns, 600,000 had some type of error, said Tax Commissioner Danny M. Payne. That's 150,000 more than usual, he said.

Officials sent letters last week to 60,000 taxpayers alerting them to the delays caused by errors. Refunds not paid by July 1 begin to accumulate interest under state law, at an annual rate of 9 percent.

The Republican governor offered no apology about the delays today on his call-in show on WTOP radio, attributing the grumbling over the issue to opponents of his car-tax repeal program.

"They're going to say this is some nefarious conspiracy," Gilmore said. "At bottom, it's people who don't want to see the tax cut."

Del. Vincent F. Callahan Jr. (R-Fairfax), who as co-chairman of the House Appropriations Committee has been a lead Gilmore ally on the car-tax repeal, called Gilmore's statement "a stretch."

"I don't know what the problem is," said Callahan, whose office has logged dozens of complaints about late refunds, including Adcock's. "The money ought to be paid promptly."

Gilmore said four out of five refunds were paid within 12 days, and 90 percent within 18 days. So far, the state has paid out $808 million in refunds, up 20 percent from last year, the governor said.

Taxpayers who complain to their delegates and state senators are getting prompt attention, but others are reporting frustration when they try to use the Department of Taxation's Web site or its automated telephone system to check on their refunds.

Denis P. Paddeu, 47, complained this month to Del. Harry J. Parrish (R-Prince William), who is not only his delegate but also co-chairman of the House Finance Committee. Paddeu's $1,400 check arrived about 10 days later. It made him only angrier at state tax officials.

"They were great once I started making noise," Paddeu said. "It just annoys me to death that I have to put pressure on to get them to do something that should have been automatic."

The mystery of the slow tax refunds has baffled Republicans and Democrats alike. Checks used to routinely arrive in just a couple of weeks, generating few complaints to state lawmakers.

There has been a surge in complaints in the past two years, say lawmakers, many of whom report more than 100 this year. Commissioners of the revenue, who are locally elected, report a similar spike in complaints about tax refunds. Maryland, by contrast, finished paying its refunds June 15.

State Sen. Richard L. Saslaw (D-Fairfax) blamed a cash flow problem created by the need to reimburse local governments for Gilmore's car-tax repeal.

"It ain't fooling anybody. You couldn't run a business this way," Saslaw said. "Sooner or later, it'd catch up with somebody."

Payne said the delays have nothing to do with the car-tax cut or this year's budget impasse. "This is strictly having to do with the Form 760 redesign," he said.

Washington Post

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