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2005 SESSION
054056772Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3524 of the Code of Virginia, as it shall become effective, is amended and reenacted as follows:
§ 58.1-3524. (Effective January 1, 2006) Tangible personal property tax relief; local tax rates on vehicles qualifying for tangible personal property tax relief.
A. For tax year 2006 and all tax years thereafter, counties, cities, and towns shall be reimbursed by the Commonwealth for providing the required tangible personal property tax relief as set forth herein.
B. For tax year 2006 and all tax years thereafter, the
Commonwealth shall pay a total of $950 million for each such tax year in reimbursements
to localities for providing the required tangible personal property tax relief
on qualifying vehicles in subsection C. No other amount shall be paid to
counties, cities, and towns for providing tangible personal property tax relief
on qualifying vehicles. Each county's, city's, or town's share of the $950
million for each such tax year shall be determined pro rata based upon the actual payments to total billings of
such county, city, or town pursuant to this chapter for tax calendar year 2005 as compared to the actual payments tototal
billings of all counties, cities, and towns pursuant to this
chapter for tax calendar year
2005, as certified in writing by the Auditor of Public Accounts no later than
March 1, 2006, to the Governor and to the chairmen of the Senate Committee on
Finance and the House Committee on Appropriations. The amount reimbursed to a
particular county, city, or town for tax year 2006 for providing tangible
personal property tax relief shall be the same amount reimbursed to such
county, city, or town for each subsequent tax year.
The reimbursement to each county, city, or town for tax year 2006 shall be paid by the Commonwealth over the 12-month period beginning with the month of July 2006 and ending with the month of June 2007, as provided in the general appropriation act. For all tax years subsequent to tax year 2006, reimbursements shall be paid over the same 12-month period. All reimbursement payments shall be made by check issued by the State Treasurer to the respective treasurer of the county, city, or town on warrant of the Comptroller.
C. For tax year 2006 and all tax years thereafter, each county, city, or town that will receive a reimbursement from the Commonwealth pursuant to subsection B shall provide tangible personal property tax relief on qualifying vehicles by reducing its local tax rate on qualifying vehicles as follows:
1. The local governing body of each county, city, or town shall fix or establish its tangible personal property tax rate for its general class of tangible personal property, which rate shall also be applied to that portion of the value of each qualifying vehicle that is in excess of $20,000;
2. After fixing or establishing its tangible personal property tax rate for its general class of tangible personal property, the local governing body of the county, city, or town shall fix or establish one or more reduced tax rates (lower than the rate applied to the general class of tangible personal property) that shall be applied solely to that portion of the value of each qualifying vehicle that is not in excess of $20,000. No other tangible personal property tax rate shall be applied to that portion of the value of each qualifying vehicle that is not in excess of $20,000. Such reduced tax rate or rates shall be set at an effective tax rate or rates such that (i) the revenue to be received from such reduced tax rate or rates on that portion of the value of qualifying vehicles not in excess of $20,000 plus (ii) the revenue to be received on that portion of the value of qualifying vehicles in excess of $20,000 plus (iii) the Commonwealth's reimbursement is approximately equal to the total revenue that would have been received by the county, city, or town from its tangible personal property tax had the tax rate for its general class of tangible personal property been applied to 100 percent of the value of all qualifying vehicles.
D. On or before the date the certified personal property tax book is required by § 58.1-3118 to be provided to the treasurer, the commissioner of the revenue shall identify each qualifying vehicle and its value to the treasurer of the locality.
E. The provisions of this section are mandatory for any county, city, or town that will receive a reimbursement pursuant to subsection B.