City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 16, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution to Establish the 2021 Personal Property Tax Relief Rates. [ROLL-CALL VOTE]
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ISSUE: Consideration of a resolution to establish the personal property tax relief rates for calendar year 2021.
RECOMMENDATION: That City Council adopt the attached resolution (Attachment) to establish the personal property tax relief rates for calendar year 2021.
BACKGROUND: Through the Personal Property Tax Relief Act of 1998 (PPTRA), the Commonwealth of Virginia grants partial relief of the personal property tax levied on the first $20,000 of the assessed value for qualifying vehicles. To qualify, a vehicle must:
1. Have a registered gross weight less than 7,501 pounds (personal use pickup/panel trucks may weigh up to 10,000);
2. Be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax; and
3. Be used less than 50 percent for business purposes.
Motor homes, trailers, and farm use vehicles do not qualify for personal property tax relief.
In 2004, the General Assembly passed legislation capping PPTRA relief at $950 million for the entire State, beginning with calendar year 2006. Each locality must annually recalculate the personal property tax relief rates to equitably distribute the locality's PPTRA reimbursement from the State. In 2015, the General Assembly took additional action related to PPTRA that provided additional reimbursement stipulations for active duty military members with leased vehicles. This legislative action took effect in 2016.
DISCUSSION: In 2013, City Council passed an ordinance that adopted a four-tiered personal property tax relief structure and requires the personal property tax relief ...
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