City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 7, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Amend Section 3-2-227 (SAME - CREDIT FOR TAX PAID TO OTHER JURISDICTIONS) of Division 3 (TANGIBLE PERSONAL PROPERTY AND MACHINERY AND TOOLS) of Article M (LEVY AND COLLECTION OF PROPERTY TAXES) of Chapter 2 (TAXATION) of Title 3 (FINANCE, TAXATION AND PROCUREMENT) of the Code of the City of Alexandria, Virginia, 1981, as amended.
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ISSUE: Consideration of an ordinance to clarify that a credit for Personal Property taxes (the "Car Tax") paid to other jurisdictions is only required in cases where there is a legal assessment to such other jurisdiction.
RECOMMENDATION: That City Council pass the proposed ordinance (Attachment 2) on first reading and schedule it for public hearing, second reading and final passage on February 24, 2018.
DISCUSSION: Virginia Code Section 58.1-3516(B) requires that a locality's Personal Property tax ordinance shall exempt vehicles from taxation "for any tax year or portion thereof during which the property was legally assessed by another jurisdiction in the Commonwealth and the tax paid" (emphasis added). This section of law prevents double taxation in the assessment of a Car Tax.
The ordinance amendment presented herein is a technical clarification to align the City's ordinance with the State Code mandate. At present, the City's ordinance omits the phrase "legally assessed." As such, a credit against the City's local Car Tax is provided by ordinance for any similar tax paid to another jurisdiction. The problem arises in cases where a tax may have been paid to another jurisdiction, but should have instead been rightfully paid to the City.
The key phrase in the State stat...
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