Minutes 09/13/2022 - Laserfiche WebLink

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September 13, 2022 22 - 265 - Adoption of an ordinance to amend and reordain Article I of Chapter 35 of the Code of the City of Portsmouth, Virginia (2006) (Taxation/In General) by amending Section 35-9.1 for the purpose of complying with state law mandating retroactivity of the disabled veteran personal property tax exemption in certain circumstances. Background:  In November 2020, voters approved a constitutional amendment exempting one motor vehicle owned by a veteran with a 100 percent service-connected, permanent disability from personal property taxation. In 2021, the Virginia General Assembly adopted a new Virginia Code Section (§ 58.1-3668) to implement the constitutional amendment.  City Code § 35-9.1(g) addresses the personal property tax exemption for disabled veterans and must be conformed to the Virginia Code amendment. Discussion:  Specifically, the City Code does not apply the exemption retroactively, but the Virginia Code now requires retroactively under certain conditions. The conditions are: (1) the veteran must have owned the motor vehicle during the retroactive period; (2) the retroactive period cannot extend back further than three years; and (3) the retroactive period cannot include any period prior to January 1, 2021.  The proposed amendment conforms the City Code to this new requirement and also changes the citations in the City Code to reference newly adopted § 58.1-3668 of the Virginia Code. Financial impact:  The Code amendment may result in loss of a modest amount of personal property tax revenue, but is necessary to comply with state law. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  The Commissioner of the Revenue will process exemption applications in accordance with the revised City Code. Motion by Mr. Moody, and seconded by Ms. Lucas-Burke, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO AMEND AND REORDAIN ARTICLE I OF CHAPTER 35 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (2006) (TAXATION/IN GENERAL) BY AMENDING SECTION 35-9.1 FOR THE PURPOSE OF COMPLYING WITH STATE LAW MANDATING RETROACTIVITY OF THE DISABLED VETERAN PERSONAL PROPERTY TAX EXEMPTION IN CERTAIN CIRCUMSTANCES.” Ayes: Barnes, Battle, Lucas-Burke, Moody, Whitaker, Woodard, Glover Nays: None 22 - 266 - Adoption of an ordinance to amend and reordain Article X of Chapter 35 of the Code of the City of Portsmouth, Virginia (2006) (Transient Rental Tax) by amending Sections 35-441, 35-442, and 35-443 for the purpose of complying with amendments to the Virginia Code regarding the collection of the transient rental tax by intermediaries. Background:  The transient rental tax (also known as the ‘transient occupancy tax’ or the ‘hotel tax’) is a tax on lodging within the city.  Chapter 35 of the Portsmouth City Code currently requires hotels and other lodging facilities to collect the transient rental tax and deliver it to the Commissioner of the Revenue.