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Fredericksburg City Beat

This blog includes news about City Hall, city schools and other 22401 news.

Pamela Gould reports on City Hall. You can reach her at 540-735-1972 or pgould@freelancestar.com. Robyn Sidersky reports on city schools. You can reach her at 540-374-5413 or rsidersky@freelancestar.com.

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Personal property tax rate now $3.40

The City Council tonight took the final vote required to raise the personal property tax rate on automobiles from $2.99 to $3.40 per $100 of value. As you have probably read at least a dozen times by now, this move is meant to keep revenue from this tax steady.

Because car values have taken a tumble, the city stood to lose $866,000 in this fiscal year if it didn’t raise the tax. A few weeks ago, council members talked about delaying a vote on this until after they could talk more in-depth about where city revenue comes from.

At a planning retreat two weeks ago, Councilman Brad Ellis asked if several capital projects could be postponed to help replace some of the $866,000, but the projects he pointed to were all funded with outside money. Besides, if you use saved capital money to replace a recurring loss in revenue, the same problem comes back the next year.

Ellis was the only one who said anything about the tax hike tonight.

"Every member of council has tried to look for extra savings in the budget," he said. "I just see no way around this tax hike."

In other news, the council approved four easements necessary for the Surgi-Center of Central Virginia to build a new facility next to Dixon Park on Dixon Street. In addition to the easements, the city and the developer plan to enter into an agreement to share parking spaces, to provide more parking for both the business and the park at times when only one facility is in heavy use.

The Surgi-Center is projected to bring in $302,440 in annual local tax revenue. The EDA agreed earlier this year to contribute $50,000 toward the $181,000 in development fees this project will entail.

 

Permalink: http://news.fredericksburg.com/citybeat/2009/11/24/personal-property-tax-rate-now-340/

  • fredness108

    If I can keep the old truck running another year, it’s blue book will be so low that at property tax time the city will be paying me .

  • RivaPops

    Since when did car values take a tumble? With all the hoopla over C4C, the owners of these new vehicles should more than offset any supposed lost revenue. Just maybe the City should look into the out-of-state tagged vehicles at homes and apartments in Fredericksburg. Quit putting all of the burden on the law abiding citizen! And while you’re at it, the City Council needs to start living within it’s means and realize that, in these times, business as usual will BANKRUPT YOU and IT CAN HAPPEN! Ever thought about consolidating with a county and quit duplicating services? The counties should consider the same but there is a MAJOR STUMBLING BLOCK: GREED!! Need I say more?

  • tpkeller

    The C4C program would not have had time to affect the overall value of cars in the city, and it probably didn’t really result in that many new cars anyway.

    I think you’re on to something with the out of state cars though.

    Someone in city hall should run a report that shows which households in the city do not have a car on the books. Then look into why not.

    While there are certainly a few folks who really don’t have any cars, that number is bound to be very, very small.

    Unless you are in a special excluded category, (such as active duty military, or a full time student), I believe it’s against the law to not register your car within 30 days of moving to the state. I bet there is quite a bit of tax revenue there waiting to be collected.

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