Share to Facebook Share to Twitter Bookmark and Share
File #: 19-1941    Name: Elimination of Local Registration Fee
Type: Ordinance Status: Agenda Ready
File created: 4/1/2019 In control: City Council Legislative Meeting
On agenda: 4/13/2019 Final action:
Title: Public Hearing and Second Reading of an Ordinance to repeal Article R (LICENSE TAXES ON MOTOR VEHICLES, TRAILERS AND SEMITRAILERS), Sections 3-2-321 through 3-2-350, of Chapter 2 (TAXATION) of Title 3 (FINANCE, TAXATION AND PROCUREMENT) of the Code of the City of Alexandria, Virginia.
Sponsors: Morgan Routt
Attachments: 1. 19-1941_Local Registration Fee Elimination Ordinance Cover, 2. 19-1941_Local Registration Fee Elimination Ordinance, 3. 19-1941_Accountable, Effective, Well-Managed Government Work Session
City of Alexandria, Virginia
________________

MEMORANDUM


DATE: APRIL 3, 2019

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: MARK B. JINKS, CITY MANAGER

DOCKET TITLE:
TITLE
Public Hearing and Second Reading of an Ordinance to repeal Article R (LICENSE TAXES ON MOTOR VEHICLES, TRAILERS AND SEMITRAILERS), Sections 3-2-321 through 3-2-350, of Chapter 2 (TAXATION) of Title 3 (FINANCE, TAXATION AND PROCUREMENT) of the Code of the City of Alexandria, Virginia.
BODY
_________________________________________________________________

ISSUE: Consideration of an ordinance to Repeal Article R, City Code Sections 3-2-321 through 3-2-350, Chapter 2, Title 3, to eliminate the local registration fee (formerly the decal fee).

RECOMMENDATION: That City Council pass the proposed ordinance (Attachment 2) on first reading and schedule it for a public hearing on April 13, 2019. If this option is considered and approved in the Add/Delete phase of the FY 2020 budget process, the second reading and final passage will occur on May 1, 2019 with adoption of the FY 2020 budget. The elimination of the local registration fee for motor vehicles would become effective July 1, 2019.

DISCUSSION: City Council has discussed various components of the City Code related to vehicle decal and local registration fees over the past two months. At the March 12 Legislative Meeting, City Council set a maximum tax rate of $5.56 for personal property tax on vehicles to allow for the flexibility to consider eliminating both the decal and what would be referred to as the local registration fee.
On March 16, 2019 City Council approved the elimination of the decal. This did not have a revenue impact because the City Code was revised to allow a local registration fee to be charged for vehicles.
Subsequently, at the March 27 budget work session, City Council discussed options to eliminate the local registration fee and to offset the loss in revenue with an increase to the Personal Property ...

Click here for full text