City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 26, 2019
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Second Reading and Final Passage 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. [ROLL-CALL VOTE]
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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 consider the proposed ordinance (Attachment 2) for final passage on May 1, 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 during the FY 2020 budget process. 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 tax ...
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