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City Council raises percentage of vehicle taxes residents must pay

Jeremy M. Lazarus | 4/16/2020, 6 p.m.
As people struggle to pay their bills amid the pandemic, City Council has quietly approved a 1 percent increase in ...
Ms. Gray

As people struggle to pay their bills amid the pandemic, City Council has quietly approved a 1 percent increase in the tax that owners of vehicles garaged in Richmond must pay by Friday, June 5.

In an effort to protect city revenues, City Council passed the increase Monday night at a brief meeting in which most members participated electronically.

Under the resolution that was approved, vehicle owners will be required to pay 50 percent of the tax assessed this year on qualifying vehicles valued between $1,000 to $20,000. That

amount is up from 49 percent last year. Owners must pay the full tax of $3.70 per $100 of assessed value on any amount above $20,000.

The state picks up a share of the vehicle tax for cars and trucks valued at less than $20,000, but that amount has been capped for years at $16.7 million for Richmond.

To meet the city’s goal of collecting more than $34 million in revenue from vehicle taxes, City Council routinely has required vehicle owners to pay an increasing percentage of the tax; that share has increased about 1 percent each year.

Separately, City Council gave elderly and totally disabled homeowners more time to apply for a reduction or elimination of real estate taxes on their property because of the pandemic. The amount of tax residents would owe if approved is based on income and net worth.

The March 31 deadline was extended to Thursday, April 30.

The council also took under consideration Mayor Levar M. Stoney’s proposal to offer limited amnesty to businesses that owe taxes to the city, although the proposal has a majority of support and is expected to be approved quickly.

As introduced Monday, the ordinance would allow a waiver of penalties and interest for late

payments of meals, amusement and lodging taxes collected between April and June 30.

To date, though, neither the mayor nor any member of City Council has introduced any proposals to provide a similar waiver of penalties and interest for vehicle owners and real estate owners who might pay after the upcoming June deadlines.

Concilwoman Reva M. Trammell, 8th District, has advocated for that kind of amnesty, but has yet to gain a majority, according to Councilwoman Kim B. Gray, 2nd District.

“I think that is something we are going to have to consider,” Ms. Gray said.