R-06-03
RESOLUTION NO. R-06-03
A RESOLUTION IlVlPLEJVl:ENTING THE CHANGES TO THE
PERSONAL PROPERTY TAX RELIEF ACT OF :1998
EFFECTED BY ENACTlVlENT OF CHAPTER :1 OF THE ACTS OF ASSElVlBLY.
2004 SPECIAL SESSION I AND OF ITElVl 503 OF THE 2005 SESSION REVISIONS
TO THE 2004-06 APPROPRIATIONS ACT
VVHEREAS, the Personal Property Tax Relief Act of 1998, Code of Virginia 9958.1-3523 et
seq., has been substantially modified by the enactment: of Chapter 1 of the Acts of Assembly"
2004 Special Session I (Senate Bill 5005), and the provisions of Item 503 of Chapter 951 of
the 2005 Acts of Assembly (the 2005 revisions to the 2004-06 Appropriations Act); and
"V\TIIEREAS, these legislative enactments require the City to take affirmative steps to
implement: these changes", a.:n.d to provide for the computation and allocation of relief provided
pursuant to the PPTRA as revised; aJ1d
""HER...EAS, these legislative enactments provide for the appropriation to the City by the
CommoI1"VVealth, commencing in 2006, of a fixed sum to be used exclusively for the provision
of tax relief to ovvners of qualifying personal use vehicles that are subject to the personal
property tax on such vehicles, and provide the opportunity for the City to fashion a program
of tax relief that serves the best interests of its citizenry.
NOVV. THEREFORE. BE IT RESOLVED by the City Council of the City of Fairfax, that
it does hereby adopt this resolution to implement the changes to the Personal Property Tax
Relief Act of 1998 (the <<PPTRA") effected by enactment of Chapter 1 of the Acts of
Assembly, 2004 Special Session I and of Item 503 of the 2005 Session Revisions to the 2004-
06 Appropriations Act (together, the <<2005 Appropriations Act").
BE IT FURTHER RESOLVED that terms used herein that have defined meanings set forth
in the PPTRA shall have the same meanings as set forth in Code of Virginia", ~58.1-3523". as
amended". and to the extent that the provisions of this resolution conflict vv-ith any other
provision of the lavv-s of the city". that the provisions of this resolution shall control.
BE IT FURTHER RESOLVED as follovvs:
(a) JVl:ethod of comput:ing and reflect:ing t:ax relief.
(i) For tax years commencing in 2006", the city adopts the provisions of
Item 503.E of the 2005 Appropriations Act, providing for the computation of
tax relief as a specific dollar amount to be offset against the total taxes that
V\Tould othe:rv\Tise be due but for PPTRA and the reporting of such specific
dollar relief on the tax bill.
(ii) The city conncil shall". as part of the adopted budget". set the rate of tax
relief at such a level that it is ar1ticipated fully to exhaust PPTRA relief funds
provided to the city by the CommonVV"ealth. Ar1y amount of PPTRA relief not
used vvithin the city'" s fiscal year shall be carried fo~ard and used to increase
the :fi.:Lrrds available for personal property tax relief in the folloVV"ing fiscal year.
(iii) Personal property tax. bills shall set forth on their face the specific
dollar amount of relief credited vv-ith respect to each qualifying vehicle".
together vvith an explanation of the general manner in vv-hich relief is allocated.
(b) A.llocat:ion of relief"' among t:axpayers.
(i) Allocation of PPTRA relief shall be provided in accordance vv-ith the
general provisions of this resolution". as implemented by the specific provisions
of the city"s armual budget relating to PPTRA relief.
(ii) Relief shall be allocated in such as manner as to eliminate personal
property taxation of each qualifying vehicle with an assessed value of $1,000
or less.
(iii) Relief with respect to qualifying vehicles with assessed values of more
than $1,000 shall be provided at a rate, annually fixed in the city budget and
applied to the first $20,000 in value of each such qualifying vehicle, that is
estimated fully to use all available state PPTRA relief funds provided to the
city. The rate shall be established annually as a part of the city's adopted
budget.
(c) Transitional provisions.
(i) Pursuant to authority conferred in Item 503.D of the 2005
Appropriations Act, the City Treasurer is authorized to issue a supplemental
personal property tax bill, in the amount of 100 percent of tax due without
regard to any former entitlement to state PPTRA relief, plus applicable
penalties and interest, to any taxpayer whose taxes with respect to a qualifying
vehicle for tax year 2005 or any prior tax year remain unpaid on September 1,
2006, or such date as state funds for reimbursement of the state share of such
bill have become unavailable, whichever earlier occurs.
(ii) Penalty and interest with respect to bills issued pursuant to this
resolution shall be computed on the entire amount of tax owed. Interest shall
be computed at the rate provided from the original due date of the tax.
BE IT FURTHER RESOLVED, that the provisions of this resolution shall remain in force
unless otherwise rescinded by the City Council for future tax years beyond 2006, contingent
upon a future enabling state code amendment or continuance of the 2005 budget language in
future biennial state budgets.
Adopted this 7th day of February 2006.
B~
Mayor
ATTEST: ~
tf~~
Cit Clerk
VOTE:
Councilwoman Cross Aye
Councilman Greenfield Aye
Councilwoman Lyon Aye
Councilman Rasmussen Aye
Councilman Silverthorne Aye
Councilmember Winter Aye