City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 17, 2015
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Consideration of a Resolution to Establish the 2015 Personal Property Tax Relief Rates. [ROLL-CALL VOTE]
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ISSUE: Consideration of a resolution to establish the personal property tax relief rates for calendar year 2015.
RECOMMENDATION: That City Council adopt the attached resolution (Attachment I) to establish the personal property tax relief rates for calendar year 2015.
BACKGROUND: Through the Personal Property Tax Relief Act of 1998 (PPTRA), the Commonwealth of Virginia grants partial relief of the personal property tax levied on the first $20,000 of the assessed value for qualifying vehicles. To qualify, a vehicle must:
1. Have a registered gross weight less than 7,501 pounds;
2. Be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax; and
3. Be used less than 50 percent for business purposes.
Motor homes, trailers, and farm use vehicles do not qualify for personal property tax relief.
In 2004, the General Assembly passed legislation capping PPTRA relief at $950 million for the entire State, beginning with calendar year 2006. Each locality must annually recalculate the personal property tax relief rates to equitably distribute the locality's PPTRA reimbursement from the State.
DISCUSSION: In 2013, City Council passed an ordinance that adopted a four-tiered personal property tax relief structure and requires the personal property tax relief rates to be established each year by resolution. Qualifying vehicles assessed at $1,000 or less receive 100 percent relief. Qualifying vehicles assessed at $1,001 or more receive, to the extent feasible, varying rates of relief according to the...
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