City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 14, 2016
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, 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 increase the City’s cigarette tax from $1.15 to $1.26 per pack.
RECOMMENDATION: That City Council hold a public hearing and pass the proposed ordinance on Saturday, May 14, 2016. The ordinance will be effective July 1, 2016.
DISCUSSION: As part of the City’s FY 2017 Add/Delete process, City Council proposed increasing the City’s cigarette tax rate from $1.15 per pack to $1.26 per pack to generate additional revenue to support City health-related initiatives. The increase will become effective July 1, 2016.
FISCAL IMPACT: The 11 cent increase per pack is estimated to produce an additional $160,555 in revenues for health-related initiatives in FY 2017.
ATTACHMENTS:
Attachment I: Cigarette Tax Ordinance Cover
Attachment II: Cigarette Tax Ordinance
STAFF:
Laura B. Triggs, Deputy City Manager
Morgan Routt, Director, Office of Management and Budget
Kendel Taylor, Director, Finance Department