WHEREAS, We the People of Chesapeake, Virginia, bear the burden of personal property taxation, particularly on vehicles, impacting household finances and economic well-being; and

WHEREAS, this tax disproportionately affects low and middle-income individuals and families, individuals on fixed incomes, and retirees and hinders their ability to afford essential transportation; and

WHEREAS, increasing the tax relief percentage for the first $20,000 of assessed value would provide relief to a significant portion of our community; and

WHEREAS, such reform measures would enhance equity, support economic stability, and improve the overall standard of living for Chesapeake residents, particularly during a time of record inflation and reduced wages; and

WHEREAS, reducing the personal property tax on vehicles, would alleviate financial strain on residents, promote economic mobility, and enhance overall quality of life within our community; and 

WHEREAS, the People are already taxed when they purchase a vehicle, pay a fee to register the vehicle, pay a fee to have the vehicle inspected, pay to have the vehicle insured, pay taxes on the fuel used to operate the vehicle, and pay taxes and tolls to use the roads on which they travel; and

WHEREAS, the personal property tax disincentivizes people from purchasing new and more environmentally friendly vehicles; and

WHEREAS, the inability to pay the exorbitant personal property tax, on the heels of paying federal and state income taxes, affects the overall economy and the safety for those seeking safer and more reliable vehicles; and

WHEREAS, Section 58.1-3524 of the Code of Virginia (1950) as amended gives the City Council the authority to "fix" or "establish" its tangible personal property tax rate for a general class of tangible personal property; and

WHEREAS, Virginia Code § 58.1-3524 allows the City Council to 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 equal to or less than $20,000.00; and

WHEREAS, Virginia Code § 58.1-3506.1 allows the City Council to establish by ordinance a tax on one motor vehicle owned and used primarily by or for anyone at least 65 years of age or anyone found to be permanently and totally disabled, as defined in § 58.1-3506.3, at a different rate from the tax imposed on other tangible personal property; and

WHEREAS, Code of Virginia § 58.1-3506.6 states that if the City Council establishes such reduced rates of taxation, the treasurer shall enclose written notice, in each tangible personal property tax bill, of the terms and conditions of any local tangible personal property tax relief program established in Chesapeake pursuant to § 58.1-3506.1; and

WHEREAS, pursuant to Code of Virginia § 58.1-3506.6 the treasurer shall employ any other reasonable means necessary to notify residents of the county, city, or town about the terms and conditions of the tangible personal property tax relief program for elderly individuals and individuals with disabilities who reside in Chesapeake; and

WHEREAS, the City of Chesapeake not only does not have a program in place for providing relief for the elderly and disabled as do two of the wealthiest counties in Virginia—Loudoun County and Fairfax County (whose median income in 2021 was $169,510.00 and $144,814.00, respectively, and which counties also have an online application for persons to complete comparted to Chesapeake whose median income for 2021 was $92,486.00) (source: https://www.neilsberg.com/insights/loudoun-county-va-median-household-income/); and   

WHEREAS, Chesapeake has established only one rate of taxation, i.e., $4.08 per $100.00 of assessed value and makes no distinction between vehicles valued at or below $20,000.00 from those that exceed $20,000.00 regardless of age or disability; and

WHEREAS, no other tangible personal property tax rate has been applied to that portion of the value of each qualifying vehicle that is not in excess of $20,000; and

WHEREAS, the People’s request is not without precedent given that jurisdictions such as Portsmouth included in its FY2024 budget, a one-time 50% tax cut for personal property such as vehicles that is 5% higher than it was for FY2023 and Fairfax County reduced the assessed value of vehicles by 10% but also provided a significantly greater percentage of the car tax relief credit (i.e., 51% vs. Chesapeake’s 41%) without a diminution of critical services; and 

WHEREAS, by way of example, Fairfax County has put the following sample calculations on its website for a vehicle valued at $10,000. (www.Fairfaxcounty.gov); and

--For Tax Year 2023 ONLY, all vehicle values have been reduced by 10% from value listed in the January edition of the J.D. Power Associates Valuation Services Used Car Guide. The reduction will occur automatically; and

--Example for a Personal Use Vehicle Valued at $20,000 or less in Tax Year 2023

Full vehicle value per value guide $10,000
Less 10% value reduction $10,000 x 0.10
- $1,000 -$1,000
Reduced Value reflected on bill for Tax Year
2023 ONLY $10,000 - $1,000
= $9,000 $9,000
Apply the tax rate ($4.57 per $100 value) to get
total annual tax for the vehicle $9,000 x ($4.57 / 100)
= $411.30
$411.30
Calculate the personal property tax relief amount
(51% in 2023) $411.30 x 0.51
= $209.76 -$209.76
Reduce the total annual tax by the relief amount $411.30 - $209.76
= $201.54 $201.54
Annual tax amount to be paid by vehicle owner $201.54

WHEREAS, based on the example above the personal property tax for a $10,000 vehicle used in Fairfax County is $201.00 and the tax using Chesapeake's calculations would be $241.00 a full $41.00 more (or a 20% increase over Fairfax County); and

WHEREAS, fundamentally, people are just angry about, and tired of, paying taxes for everything they do in this City and feel their elected officials could not care less about their financial worries and struggles; and

WHEREAS, people are still required to pay a minimum $26.00 City License Fee but do not even get the benefit of affixing the sticker they paid for and also fail to understand what they are receiving in exchange for paying said License Fee; and

WHEREAS, in other words, the sticker went away, but the fee remained

NOW, THEREFORE, be it resolved by the people of the City of Chesapeake, as represented herein state as follows:

1. The People of Chesapeake urge the Chesapeake City Council to take immediate action to reform tangible personal property taxation policies by doing all or some of the following:

a. Abolishing the tax altogether to the extent allowable to by State Statutes and the Virginia Constitution.

b. Decreasing the threshold amount ("the assessed value") by some reasonable percentage or amount that would then be subject to reasonable taxation.

с. Raising the car tax relief credit from 41% to no less than 60% for the first $20,000.00 of assessed value.

d. Setting up a two-tier system of taxation that provides a reduced amount of taxation for any amount of the assessed value that exceed the first $20,000.00.

e. Immediately abating and abolishing the City License Fee that simply
amounts to a tax on top of another tax.

f. Applying the tax relief for the 2024 tax year that is due June 5, 2024, as well as for all subsequent years unless or until the tangible personal property tax is repealed. 

g. Establishing a program for tax relief using the models of Loudoun and Fairfax counties to provide tax relief for people who qualify and are 65 years of age or older or who are permanently and physically disabled.

2. The People of Chesapeake recognize the importance of maintaining essential city services and infrastructure, and thus call for prudent fiscal management and budgetary considerations in conjunction with any proposed reforms. However, the People also recognize that the City of Chesapeake has run a multi-million-dollar surplus year over year as evidenced by its online budget.

3. The People urge city officials to engage in transparent and inclusive dialogue with residents, soliciting input and feedback throughout the reform process.

4. The People emphasize the urgency of addressing the financial burdens faced by Chesapeake residents, particularly considering economic challenges and uncertainties.

5. The People urge our elected officials to individually affirm his or her commitment to fostering a community that prioritizes fairness, equity, and the well-being of all its citizens.

6. The People require our City Council to require all appropriate departments to take any necessary steps to implement this resolution, including but not limited to adjusting tax codes, informing residents, and updating administrative procedures.

9. The People further expect that its City Council will direct the City Manager to assess and report on the fiscal impact of reducing the personal property tax on vehicles, including potential adjustments to the city's budget and revenue streams.

10. The People further hope that their City Council will encourage state legislators to support legislative measures that facilitate the abolition of personal property taxes on vehicles statewide, recognizing the benefits to citizens and municipalities alike.

Be it further resolved that this Petition along with signatures from the community be transmitted to the Mayor of the City of Chesapeake, Chesapeake City Council, relevant city departments, the City Attorney, the City Treasurer, and other stakeholders involved in taxation policy.

Petitioned this ____ day of May 2024 by the Citizens of Chesapeake, Virginia, many of whom have affixed their signatures.