2017 Session

Budget Amendments - HB1500 (Committee Approved)

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Provide Loan to Offset Portsmouth Losses (language only)

Item 464 #1h

Item 464 #1h

Virginia Port Authority


Page 452, after line 1, insert:

"C. Notwithstanding the provisions of § 4-3.02 of this act, the Secretary of Finance may provide the City of Portsmouth interest-free treasury loans in an amount not to exceed $1,700,000 in the first year and $1,700,000 in the second year which may be extended for a period longer than twelve months.  The loan is intended to offset losses in personal property tax collections generated by the City due to the transfer of personal property from the Virginia International Gateway to the Commonwealth.  The specific terms and structure of any loan shall be approved by the Secretary of Finance, after consultation with the Chairmen of the House Appropriations and Senate Finance Committees, or their designees.  A treasury loan for this purpose shall be considered as bridge financing until the planned expansion of the Virginia International Gateway Facility commences and additional equipment is purchased which will generate personal property taxes that the City of Portsmouth shall use to repay the loan."


(This amendment authorizes a Treasury loan in the amount of $1.7 million in each year of the biennium to the VPA to help offset losses faced by the City of Portsmouth as a result of substantial quantities of personal property being transferred from private to state ownership under the revised lease terms for the VIG facility in Portsmouth. The intent would be to provide these loans for 3 years, after which time substantial expansion and new equipment purchases at the VIG facility will provide additional personal property taxes in amounts more than sufficient to provide for payback of the loan.)