City of Alexandria, Virginia
____________
MEMORANDUM
DATE: MAY 3, 2022
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, DIRECTOR, DEPARTMENT OF FINANCE
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to amend and reordain the allocation of State funds from the Personal Property Tax Relief Act (PPTRA) of 1998, Section 3-2-224 (Levied on Automobiles, Trucks, Trailers, Semi-Trailers, Antique Motor Vehicles, Taxicabs, Motorcycles, Campers and Other Recreational Vehicles, Boats and Trailers; Amount), of the Code of the City of Alexandria, Virginia.
BODY
________________________________________________________________________
ISSUE: Consideration of an ordinance to amend and reordain City Code Section 3-2-224 to raise the threshold for providing 100% PPTRA relief to qualifying vehicles valued $5,000 and less, and adjustment of PPTRA rates on other qualifying vehicles.
RECOMMENDATION: That City Council pass the proposed ordinance (Attachment 2) on first reading and schedule it for second reading, public hearing, and final passage on May 14, 2022.
DISCUSSION: At the Budget Workshop on March 23, 2022 on the FY 2023 proposed budget, staff presented Council with vehicle assessment options for addressing the surge in car values associated with economic supply and demand issues during the pandemic. Along with employing an Assessment Ratio that can be set by Council resolution, Council considered an option for shifting greater PPTRA relief to lower valued vehicles.
The City receives a fixed annual amount from the State each year of $23,578,531 to be used to help offset Personal Property taxes on the first $20,000 of assessed value of "personal use" vehicles only. Because of rising car values and the fixed amount of PPTRA funds from the State, the applicable rates of PPTRA relief were already expected to diminish in FY 202...
Click here for full text