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R -22 -06 A RESOLUTION TO APPLY AN ASSESSMENT RATIO TO THE VALUE OF CERTAIN AUTOMOBILES AND SMALL TRUCKS AS AUTHORIZED BY CODE OF VIRGINIA §58.1- 3503(B) FOR THE CALENDAR TAX YEAR BEGINNING JANUARY 1, 2022. WHEREAS, the COVID -19 pandemic caused widespread closures and market disruptions; and WHEREAS, the automobile industry experienced a shortage in workers, necessary parts, and equipment, including vitally important computer chips; and WHEREAS, the unexpected challenges in new automobile and consumer truck production have led to a decreased supply of new automobiles and trucks, and a substantially increased demand for used vehicles; and WHEREAS, while historically values have progressively declined over the life of a vehicle, for calendar year 2022 the values of used vehicles have substantially increased; and WHEREAS, the increase is uncharacteristic, and is expected to be short - lived; and WHEREAS, the majority of Portsmouth citizens own and operate vehicles categorized in two distinct statutorily defined classes for valuation purposes; and WHEREAS, pursuant to Code of Virginia §58.1- 3503(A)(3), the Commissioner of the Revenue must annually determine the fair market value of automobiles described therein by using a recognized pricing guide, or by a percentage of cost if an automobile is not in the pricing guide; and WHEREAS, pursuant to Code of Virginia §58.1- 3503(A)(4), the Commissioner of the Revenue must annually determine the fair market value of trucks of less than 2 tons described therein by using a recognized pricing guide, or by a percentage of cost if the truck is not in the pricing guide; and WHEREAS, Code of Virginia §58.1- 3503(B) authorizes the Commissioner of the Revenue, with the concurrence of City Council, to apply an assessment ratio of less than 100% of fair market value to one or more of the classes described in Code of Virginia §58.1- 3603(A); and WHEREAS, the Commissioner of the Revenue and the City Council concur that due to the current circumstances, an assessment ratio of seventy -five percent (75 %) shall be applied to the fair market value of each of those automobiles valued by the Commissioner in accordance with the Code of Virginia §58.1- 3503(A)(3), and each of those trucks of less than 2 tons valued in accordance with Code of Virginia §58.1- 3503(A)(4); NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that: