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Lynchburg budget work session: staff model shows cutting car tax and raising real-estate and lodging taxes would shift burden from vehicle owners to property/hy
Summary
City finance staff presented a scenario at the June 10 work session that would reduce the city's personal property (car) tax rate from $3.80 per $100 assessed value to $1.30 and increase the real estate rate and lodging taxes to make up the roughly $14 million revenue gap. Staff said the plan would expand personal-property tax relief to many more
City finance staff presented a plan at the June 10 Council work session that would sharply reduce the city's personal property (car) tax and compensate by raising the real estate tax rate and lodging taxes to hold overall revenue close to the manager's proposed budget.
Gregory Patrick and data staff Holly and Sean walked through a concept Council member Marcus Feraldi had asked staff to analyze. Staff described the Personal Property Tax Relief Act (PPTRA) and Lynchburg's application of it: Lynchburg's current personal property rate is $3.80 per $100 of assessed value, with a locally-provided $1,000 100% relief and a 30.64% relief applicable on the $1,001'$20,000 band. Under the scenario staff modeled, the local personal-property tax rate would fall to $1.30 per $100 while retaining the relief bands, which would reduce local vehicle taxes for many owners.
Sean presented projected revenue impacts: lowering the personal-property rate as modeled would reduce personal-property revenue…
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