Fluvanna hopeful’s firm owes back taxes

A company owned by a candidate for the Fluvanna County Board of Supervisors owes the county roughly $50,000 in delinquent taxes and penalties.

Keith B. Smith’s real estate development firm Acres Development LLC owes Fluvanna County at least $47,345 in taxes and late fees for at least 118 properties, according to tax records.

Smith also owes the county an additional $167.42 in personal property taxes and penalties, records show.

Smith, 46, is an independent candidate for the Cunningham District seat of Fluvanna’s Board of Supervisors. Smith did not return multiple calls and e-mails for comment Monday.

Smith’s campaign manager, Bill Hughes, said Smith was away on a family matter and was not available to answer questions.

Hughes said that Smith has a special arrangement with the county treasurer’s office to pay all of the back taxes and penalties, but only when he sells the properties in question.

Smith made a “business decision” not to pay his company’s property taxes because of the difficulties facing real estate developers during the economic downturn.

“One of the situations, as you well understand, is that the economy has gone south for all builders,” Hughes said. “It’s an arrangement where he pays all of the taxes and the penalties when he sells the lots.”

Smith was the builder behind projects such as the Acres development at Lake Monticello and the Villages at Nahor, Fluvanna’s first “active adult” community.

Hughes also said that Smith had already paid back the $167.42 that he owed in personal property taxes. He added that he thought it was “a bit petty” to question Smith about the personal property taxes because the amount was relatively low.

Other real estate developers and homeowners have made similar arrangements with the Fluvanna County treasurer’s office, Hughes said.

“He’s not the only one in this situation,” he said. “This is all related to business. He had to make this business decision to make a living. The county is receiving its money.”

The county’s treasurer, Linda Lenherr, did not return a call for comment Monday afternoon.

Fluvanna’s Board of Supervisors sets the county’s tax rate and is responsible for overseeing the execution of the county’s annual budget.

Hughes said Smith’s delinquent taxes do not reflect poorly on his ability to serve effectively on the board.

When asked in a candidate questionnaire what issues need to be addressed in Fluvanna County, Smith told The Daily Progress: “Increasing the County’s tax revenue by bringing businesses to Fluvanna — we need to seek new sources of revenue for the County.”

Donald W. Weaver, 76, who has represented the Cunningham District on Fluvanna’s board for 20 years, will face Smith in the Nov. 3 election. Weaver, a Republican, declined to comment on Smith’s taxes.

“I would not weigh in on that,” he said.

Weaver said he is current on all local taxes, and a search of county records turned up nothing to the contrary.