City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 27, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Amend and Reordain Section 3-2-142 (LEVY AND RATE) of Article K (TRANSIENT LODGING TAX) 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 amend and reordain City Code Section 3-2-142 to increase the Transient Lodging Tax of $1 per day of room rental to $1.25. The base rate of 6.5% of the total amount paid for room rental remains unchanged.
RECOMMENDATION: That City Council pass the proposed ordinance (Attachment
2) on first reading and schedule it for second reading and public hearing, and final passage on Saturday, May 12, 2018.
DISCUSSION: The existing Transient Lodging rate structure of 6.5% plus $1 per each day of rental has been in place since FY 2009. In addition to this General Fund revenue, Northern Virginia localities also collect a 2% rental charge on behalf of the Northern Virginia Transportation Authority (NVTA).
As part of its deliberation on the FY 2019 Proposed Budget, City Council supported a
twenty-five cent increase to the daily rental charge, increasing it from $1 to $1.25 per day of room rental. This rate change will increase non-departmental contingent funding to help address public safety recruitment and retention issues.
FISCAL IMPACT: Staff estimates that raising the room rental charge by $0.25 will generate approximately $286,000 per year.
ATTACHMENTS:
Attachment 1 - Proposed Ordinance Cover
Attachment 2 - Proposed Ordinance Amendment
STAFF:
Laura B. Triggs, Deputy City Manager
Kendel Taylor, Director of Finance
Kevin C. Greenlief, Assistant Director, Revenue Division, Finance
Sarah McElveen, Assistant City Attorney