Personal Property Tax Relief Program

Item 546 #1s

Language
Page 474, line 17, strike "$572,392,514" and insert "$533,936,474".
Page 474, line 17, strike "$855,404,025" and insert "$629,672,269".
Page 474, line 17, strike "a sum sufficient estimated at"
Page 474, strike lines 21 through 53.
Page 475, strike lines, 1 through 3.
Page 474, line 21, insert:
"A.1.  Included in this Item is $533,936,474 from the general fund in the first year and $629,672,269 from the general fund in the second year to be used to implement a program that provides tax relief from the personal property tax on vehicles.
2.  The amount of general funds appropriated for such program shall be determined in accordance with the provisions of Chapter 35.1 of Title 58.1 of the Code of Virginia, except that the percentage level of tax relief set forth in subsection B of § 58.1-3524 for qualifying vehicles with a value of more than one thousand dollars shall not apply for any tax year beginning in calendar year 2001 or any tax year thereafter.  The percentage level of tax relief for any tax year beginning in calendar year 2001 or any tax year thereafter shall be as follows:
a.  The amount of general funds paid to treasurers for any tax year beginning in calendar year 2001 shall be 50.0 percent of the reimbursable amount for each qualifying vehicle;
b.  The amount of general funds paid to treasurers for any tax year beginning in calendar year 2002 shall be 70.0 percent of the reimbursable amount for each qualifying vehicle; and
c.  The amount of general funds paid to treasurers for any tax year beginning in calendar year 2003 and tax years thereafter shall be 100.0 percent of the reimbursable amount for each qualifying vehicle.
3.  In addition, notwithstanding subsection D of § 58.1-3524, the percentage level of tax relief for any tax year beginning in calendar year 2002, or any tax year thereafter, shall equal the percentage level of tax relief for the immediately preceding tax year unless none of the conditions set forth in subsection C of § 58.1-3524, and as further defined in §4-2.02b. of this act occur, in which case, the percentage level of tax relief for the immediately following tax year shall be equal to the next highest percentage amount listed in A. 2. of this Item.  
4.  All other provisions of Chapter 35.1 of Title 58.1 shall apply in determining the amount of general funds paid to treasurers under this program.
5.  Personal property tax payments to any county, city or town whose treasurer, commissioner of the revenue, Director of Finance, or officials acting in that capacity, fail to reasonably cooperate in the implementation of the audit program specified in Item 281 of this act shall have personal property tax relief payments withheld until such time as the Tax Commissioner certifies that cooperation has been obtained.
B.  Any unexpended balance remaining in this Item as of June 30, 2000 and June 30, 2001, shall be carried forward on the books of the Comptroller and shall be available for expenditure in the succeeding year.  Any unexpended balance remaining in this Item on June 30, 2002, shall be carried forward on the books of the Comptroller and shall be available for expenditure in the next biennium."

Explanation
(This amendment provides funds to reimburse localities for 50 percent of the personal property tax on vehicles in FY 2001 and 70 percent in FY 2002, and requires the cooperation of local officials in identifying non-qualifying vehicles under a compliance and audit program established in Item 281.)