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Council debates phasing and caps for proposed RV tax after staff says $1.50 yields $120,000
Summary
Council members discussed phasing the proposed $1.50 recreational-vehicle tax, a potential cap for high-value RVs and options to offset revenue reductions; the manager said lowering the rate by $0.50 would reduce revenue about $40,000 and staff will provide value-band breakouts and offset options before the first reading.
Council members spent an extended portion of the work session debating a proposed recreational-vehicle tax set at $1.50 per $100 of assessed value (the rate shown in the manager's recommendation). City Manager Bunton told council that the $1.50 rate was expected to raise about $120,000 in the coming year and that each $0.50 reduction would lower revenue roughly $40,000. "If you were to go from a dollar 50 say to a dollar, that means we would have to cut our revenue estimate by 40,000 and have to try to find 40,000 offset it elsewhere in the budget," Bunton said.
Several council members urged a phased approach (for example, $1.00 this year, $1.25 next year and $1.50 thereafter) to give residents notice and to reduce the immediate burden on owners of high-value motor homes. One council member asked staff to produce a breakdown of vehicles by value bands so members could see how many vehicles would incur large tax bills; Bunton said staff would provide the median values and a category breakout and, if council wished, try to find $40,000 of savings to offset a $0.50 reduction prior to the first reading. Staff also noted that many localities charge $1.50; Newport News charges $1.00.
