Minutes 06/23/2015 - Laserfiche WebLink

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June 23, 2015 Background:  Section 58.1-3506(19) of the Virginia Code authorizes localities to treat not more than one motor vehicle owned and regularly used by an eligible disabled veteran as a separate class of personal property for purposes of taxation.  Several localities in the region have established a tax reduction or exemption for this category of vehicle. Discussion:  During budget discussions, Council expressed a desire to establish a tax exemption for motor vehicles owned and regularly used by eligible disabled veterans.  As required by the authority granted by state law, the exemption is limited to one motor vehicle owned and regularly used by a disabled veteran.  To be eligible, the veteran must have lost, or lost the use of, one or both legs, or an arm or a hand, or be blind or permanently and totally disabled as certified by the Department of Veterans Services.  The veteran must apply to the Commissioner of the Revenue for the exemption. The exemption does not have retroactive effect, and only applies while the veteran owns and uses the motor vehicle. A new application must be submitted when a veteran changes his or her primary vehicle.  Personal property taxes are assessed based on the calendar year and the current year’s taxes are due in early June. Therefore, the exemption will take effect as of January 1, 2016 and will apply to taxes for the calendar year 2016 and thereafter. Financial Impact  It is estimated that establishment of the exemption will reduce revenues by approximately $150,000. This is based on an estimate of 205 eligible disabled veterans and assumes an average taxable value of $15,000. Staff Recommends:  Adoption of an ordinance to establish a personal property tax exemption for not more than one motor vehicle owned and used by eligible disabled veterans. Vision Principle: A Proud Military Community. Next Steps Following Council Action:  The Commissioner of the Revenue will establish policies and procedures for implementation of the exemption. Motion by Mr. Moody, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO AMEND ARTICLE I OF CHAPTER 35 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (2006) BY ADOPTING A NEW SECTION 35-9.1 PERTAINING TO A PERSONAL PROPERTY TAX EXEMPTION FOR CERTAIN MOTOR VEHICLES OWNED BY ELIGIBLE DISABLED VETERANS.” Ayes: Cherry, Edmonds, Meeks, Moody, Psimas, Whitaker, Wright Nays: None - New Business - 15 - 228 - Boards and Commissions There were no appointments. 15 - 229 - Items Submitted by Council Members Mayor Wright spoke on the mural unveiling of former Mayor James Holley at City  Park.