City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 7, 2014
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 and Reordain Section 3-2-102 (Levy and Rate) of Article I (Tax on Sale of Cigarettes) of Chapter 2 (Taxation) of Title 3 (Finance, Taxation and Procurement) of the Code of the City of Alexandria, Virginia, 1981, as Amended. [ROLL-CALL VOTE]
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ISSUE: Consideration of an ordinance to amend and reordain Section 3-2-102 (LEVY AND RATE) of Article I (TAX ON SALE OF CIGARETTES) of Chapter 2 (TAXATION) of Title 3 (FINANCE, TAXATION AND PROCUREMENT) of the Code of the City of Alexandria, Virginia, 1981, as amended.
RECOMMENDATION: That City Council pass the proposed ordinance (Attachment I) following the public hearing and second reading on Saturday, May 17, 2014.
DISCUSSION: As part of the City's FY 2015 budget development process, City Council increased the cigarette tax rate from $1.00 to $1.15 per pack to generate additional revenue to support City services. The increase will become effective July 1, 2014.
FISCAL IMPACT: The additional $0.15 increase per pack is estimated to produce an additional $210,000 in revenues for FY 2015.
ATTACHMENTS:
Attachment I: Cigarette Tax Ordinance Cover
Attachment II: Cigarette Tax Ordinance
STAFF:
Laura B. Triggs, Chief Financial Officer/Director of Finance
Nelsie L. Smith, Director, Office of Management and Budget
Christina Zechman-Brown, Assistant City Attorney