COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Finance Tax Ordinances

 

SUBJECT/PROPOSAL/REQUEST:

Public hearing to consider adoption of ordinances to amend the County Code:

  • Chapter 1, General Provisions, regarding the penalty for returned checks;
  • Chapter 8, Licenses, regarding BPOL Tax provisions;
  • Chapter 9, Motor Vehicles and Traffic, regarding license decal requirements; and
  • Chapter 15, Taxation, regarding Transient Occupancy Tax and Food and Beverage Tax provisions

 

STAFF CONTACT(S):

Messrs. Tucker, Foley, Davis, Herrick, Wiggans, Walters

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

October 3, 2007

 

     ACTION:     X               INFORMATION:    

 

CONSENT AGENDA:

     ACTION:                       INFORMATION:   

 

 

ATTACHMENTS:   Yes

 

 

REVIEWED BY:

 

 

BACKGROUND:

The 2006 and 2007 General Assemblies adopted several statutory changes that require updates to the Albemarle County Code.  The attached ordinances bring the Albemarle County Code into compliance with the most recent changes to the Virginia Code.

 

STRATEGIC PLAN:

Goal 5: Fund the County’s Future Needs

 

DISCUSSION:

The four proposed ordinances attached (one for each affected chapter of the Albemarle County Code) make revisions to nine different areas of the County Code.  Most of the proposed revisions are needed to stay current with recent changes to state law.

 

This revision increases the penalty for returned checks from $20 to $35.  This revision is also amended to track Virginia Code § 2.2-614.1(C).

This revision clarifies that the motor fuels tax, whether paid directly or indirectly, is exempt from gross receipts for BPOL purposes.  This revision is needed to comply with a 2007 amendment to Virginia Code § 58.1-3732.

Virginia Code § 58.1-3724 has modified the licensing of bondsmen in several areas.  This revision will bring our local license requirements up-to-date with the more limited state enabling authority.

The “small loan company” provisions originated a long time ago when operations were significantly different.  Over time, business practices have evolved to the point to where a “small loan company” is now deemed to be a financial service, which is governed by Albemarle County Code § 8-615 (c). 

This revision sets a cap on the gross receipts taxes on fuel sales of gas retailers in the event that gas prices rise dramatically.  While this cap may never be triggered, this revision is needed to comply with new Virginia Code § 58.1-3706(E). 

Virginia Code § 46.2-752  now exempts vehicles owned by public service companies having a fleet of at least 2,500 vehicles garaged in the Commonwealth from having to display any local license, decal, or sticker.  This revision is needed to comply with a 2007 amendment to Virginia Code § 46.2-752(G).

This change decreases the maximum penalty for transient occupancy tax from 30% to 25% or the amount of the tax, whichever is less; decreases the maximum penalty for failure or refusal to file a required transient occupancy tax return to 10% of the tax assessable or $10.00, whichever is greater; and makes unlawful and punishable as a misdemeanor any willful failure or refusal to file any required transient occupancy tax return.  This revision is needed to comply with Virginia Code § 58.1-3916.

Virginia Code § 58.1-3833 was revised to exempt discretionary gratuities (tips) and restaurant-imposed gratuity/service charges that do not exceed 20% of the sales price.  This revision is needed to comply with a 2006 amendment to Virginia Code § 58.1-3833(E).

This change decreases the maximum penalty for food and beverage tax from 30% to 25% or the amount of the tax, whichever is less; decreases the maximum penalty for failure or refusal to file a required food and beverage tax return to 10% of the tax assessable or $10.00, whichever is greater; and makes unlawful and punishable as a misdemeanor any willful failure or refusal to file any required food and beverage tax return;.  This revision is needed to comply with Virginia Code § 58.1-3916.

 

 

BUDGET IMPACT:

The budgetary impact is anticipated to be minimal, a net decrease of less than $5,000.

 

 

RECOMMENDATIONS:

Staff recommends that the Board, after the public hearing, adopt the attached four ordinances (Attachments A – D).

 

 

ATTACHMENTS

A – Ordinance 07-1(2) (General Provisions)

B – Ordinance 07-8(1) (Licenses)

C – Ordinance 07-9(1) (Motor Vehicles and Traffic)

D – Ordinance 07-15(2) (Taxation)

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