VIRGINIA BEACH
Once again, a proposal to raise the taxes on boats has hit some choppy waters.
Some Virginia Beach City Council members said Tuesday they oppose increasing the tax rate to $1 per $100 of assessed value, from its now negligible rate, as proposed in the 2008- 09 budget.
"I think there's another way," Councilman Louis Jones said.
Council members Tuesday heard from about a dozen boat owners and Virginia Beach's Commissioner of Revenue Phil Kellam. All blasted the boat tax increase.
"I think you're getting ready to drop the ball on this one," said Michael Sims, a dentist and boat owner. "I think you're really going to drive away boaters."
Kellam warned the council that raising the rate could cost the city by driving owners to berth their craft elsewhere. In the process, Kellam said, the city would lose out on the money boaters spend on food and maintenance.
"This manner of raising the revenue, I think we'll be disappointed by the results," Kellam said. "I think you're going to see diminishing returns on this."
City officials proposed a similar increase last year, but the plan failed to get council approval.
Beach finance officials estimate collecting $1.1 million from a boat tax increase that would pay for waterway dredging projects.
City Manager Jim Spore said boaters should bear some of the burden of keeping waterways navigable.
"The only thing worse than boat owners paying for dredging is non-boat-owners paying for dredging," Spore said.
Beach officials dispute the idea that people will move their boats to other cities and cite an Old Dominion University study showing no correlation between the boat tax and boat migration.
But Kellam suggested the city conduct a more comprehensive study that looks at the economic impact of the industry in Virginia Beach.
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
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Raising taxes again
I have live here in the city of Virginia Beach for 49 years and all the city does is raise taxes everywhere and now try to attempt boat tax? Their crazy. If the city needs revenue so much they might try cutting back on the city workers who are suposedly work on the roads. What I have seen is that several workers standing around doing absolutly nothing are getting paid for doing absolutly nothing. Now I also see that the city spend alot of money repaving roads that are not in need of repaving. So City of Virginia beach if you need revenue so bad quit taking the tax payers money and start making cut backs you will be surprised on what kind of money you have. Don't you think we citizens of Virginia beach are fed up with all your tax increases and you none attempt for finding other avenues.
Angry
JCW
Like Cars on the Road, Boaters Need to Foot Some of the Bill
Sure, go ahead and increse the property tax on recreational boats at the Beach. The City Manager is correct in that assests deticated to the local boating community need adequate funding to not only be available when the community needs them, but to maintain navigability, safety and upkeep. Rudee Inlet will need to be dredged forever and I care not one twit if it fills to the brim with sediment washed uncontrolled from the streets of the City. If taxes are imposed, it may be the break point for some that might place the ownership of a boat over other more urgent needs of their families. With gas prices as they are and might be, do not believe that boat owners are going to go to the effort of locating their vessels elsewhere to save a dime when it might take many dollars to move the boat back and forth to the Bay or Ocean. Pleasure boats might be nice to have, but they are not a personal necessity, at least not at the expense of my family for others' pleasure. Look at I-264, no tolls and the entire roadway is now in an extreme state of disrepair.
Here is an idea, cut other spending
Instead of seeking tax hikes as "the solution", how about cutting non-essentail spending elswhere? We are only talking a million dollars a year right? Cut the $435K the city wastes on the Hampton Roads Economic Development Alliance. Cut the non-essentail, full color, glossy "Beach Magazine" propagada the city mails to over 230,000 Beach homes 4 times each year - another $300K, now we are up to $735K. Stop wasting money on the "City Page" - two page color adds in the Pilot - another $150K a year, counting production costs - we are up to $885K. Stop funding the Chamber of Commerce - another $10K, stop sponsoring Chamber events, the Norfolk Fest Events, and all the other "sponsorships" the city pays for golf outtings and other non-essentail "marketing" - I think we found the Million tax dollars to pay for dredging. The city found a way to waste over $1M on the magna carta, it can find a way to stop wasting money instead of rasing taxes. BTW - I can't afford to own a boat.