Minutes 03/22/2022 - Laserfiche WebLink

Home Browse Search

March 22, 2022 Next Steps Following Council Action:  The ratio will be applied to assessments of automobiles and small trucks. Motion by Dr. Whitaker, and seconded by Mr. Barnes, to adopt the following resolution, and was adopted by the following vote: “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: 1. In concurrence with the Commissioner of the Revenue of the City of Portsmouth, Virginia, and in accordance with Code of Virginia §58.1-3503(B), an assessment ratio of seventy-five percent (75%) shall be applied to all those automobiles valued by the Commissioner of the Revenue in accordance with Code of Virginia §58.1- 3503(A)(3), and trucks valued in accordance with Code of Virginia §58.1-3503(A)(4). 2. The assessment ratio adopted herein shall apply solely to qualifying assessments for the calendar tax year beginning January 1, 2022, and no other.”