City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 11, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading, and Final Passage of an Ordinance to Amend the Computation of Relief Rates and Setting the Relief Rates by Resolution Under the Personal Property Tax Relief Act of 1998. [ROLL-CALL VOTE]
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ISSUE: Consideration of an ordinance that restructures personal property tax relief by amending and reordaining Alexandria City Code Section 3-2-224 and a resolution establishing the personal property tax relief rates for calendar year 2013.
RECOMMENDATION: That City Council:
1. Pass the proposed ordinance (Attachment I) set for public hearing, second reading, and final passage on Saturday, June 15, 2013; and
2. Approve the attached resolution (Attachment II) setting the personal property tax relief rates for calendar year 2013 on Saturday, June 15, 2013, after final passage of the proposed ordinance.
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 tax relief.
In 2004, the General Assembly passed legislation capping PPTRA relief at $950 million for the entire State, beginning with the year 2006. Each locality must annually recalculate relief to equitably distribute the locality's PPTRA reimbursement from the State. For 2012, all...
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