1999 Session

Budget Amendments - SB800 (Member Request)

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Chief Patron: Walker
Port Service Charge Supplement

Item 544 #2s

Item 544 #2s

First Year - FY1999 Second Year - FY2000
Virginia Port Authority FY1999 $0 FY2000 $5,500,000 GF

Page 416, line 44, strike "$33,395,132" and insert "$38,895,132".
Page 418, after line 9, insert:
"E. Notwithstanding the provisions of §58.1-3403 of the Code of Virginia, Norfolk, Portsmouth, and Newport News each shall receive from the general fund, beginning in the second year, an additional amount equal to $500 per thousand tons of general cargo, including both breakbulk and container cargo, shipped through the Virginia Port Authority's marine terminals.  Such funds are intended to compensate for the extensive tax-exempt acreage and comercial traffic impacts of the three ports, and shall be used by the jurisdictions for programs that increase the jurisdiction's tax base.  Included in this item is $5,500,000 general fund for the estimated additional payment amount."

(This amendment provides an amount calculated by a formula based on cargo tonnage, and estimated at $5.5 million in the second year, to compensate Norfolk, Portsmouth, and Newport News, for the foregone revenues these cities would otherwise receive as a result of the Virginia Port Authority's use of prime waterfront property. Currently, Norfolk, Newport News, and Portsmouth annually receive $364,000, $156,000, and $62,000 respectively in port service charges pursuant to § 58.1-3403 of the Code of Virginia. These service charges are intended to offset the financial impact of the ports on these cities.)