Legislation # 09-0099 Enactment Number none
Type Briefing / Presentation / Hearing Effective Date none
Introduction Date 3/18/2009
Title Resolution Accepting the Assessment of the Economic Impacts of Recreational Boating in the City of Hampton Study and the Recommendation of the Council Finance Committee Based Upon the Study
 
Legislation History 09-0099
DateNotice Of ActionDescription
4/8/2009 Council considered this resolution and approved it on a 4-3 vote. Later in the meeting, Councilman Wallace made a motion to reconsider the resolution. His motion was seconded by Councilwoman Leary and the motion carried on a 4-2 vote with Councilman Kearney abstaining. Councilman Gilliland then moved to approve the resolution. His motion was seconded by Vice Mayor Spencer and the motion was defeated on a 3-4 vote. The resolution was not adopted.
4/8/2009 Approved
4/8/2009 Moved to reconsider the item.
4/8/2009 Approved
4/8/2009 Presented by Councilman Gilliland who gave a summary of the history of this matter and presented the recommendation of the Boat Tax Subcommittee and the City Council Finance Committee. This was not a public hearing item but several citizens had indicated a desire to speak to the issue and Mayor Ward called upon them.
4/8/2009 Presented by Tom Murray of the Virginia Institute of Marine Science. Councilman Gilliland also presented a recommendation from the Finance Committee. The item is scheduled for a vote during the evening meeting.
3/18/2009 Deferred (4/8/2009)
3/10/2009 Received By Clerk's Office
 
View Attachments 09-0099
FileTypeSizeDescription
090130 RPT VIMS Recreational Boating Economic Impact Assessment.TIF Report 2668K VIMS Report
090226 RPT Boat Tax Subcommittee.TIF Report 200K Subcommittee Report
 
Legislation Text 09-0099

 

City of Hampton, Virginia

Briefing / Presentation / Hearing

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 09-0099

 

Enactment Number: -

 

Resolution Accepting the Assessment of the Economic Impacts of Recreational Boating in the City of Hampton Study and the Recommendation of the Council Finance Committee Based Upon the Study

 

WHEREAS, the City of Hampton, Virginia is a coastal community nearly surrounded by water having more linear mileage of waterfront property than any other locality on the Chesapeake Bay, and

 

WHEREAS, the waterways and coastal shoreline are sources of aesthetic beauty, recreational and economic opportunities for the City; and

 

WHEREAS, the City recognizes the importance of the waterways and shoreline as assets that also attract recreational boaters and recreational boating enthusiasts and provide a significant economic impact to the City; and

WHEREAS, in recognition of the economic impact, in 2002 City Council directed the City Manager to develop a plan and strategy that would assist in developing and growing the recreational boat industry and marine industry generally and related economic development spurred by the recreational boating industry; and

 

WHEREAS, the City Manager and staff determined that in order to grow the industry in Hampton, the City had to be as attractive, if not more attractive, than our neighboring communities, to secure Hamptons position as the community of choice for recreational boat owners; and

 

WHEREAS, the City Manager and staff recognized that all of our neighboring communities had a lower personal property tax than Hampton on recreational boats registered and docked in the City. In order to remain competitive with the neighboring communities, the City Manager proposed and City Council adopted a nominal tax rate of $0.000001 per $100 is assessed value on privately-owned recreational boats registered and docked in the City effective January 1, 2003; and

 

WHEREAS, in FY2009 City Council directed the City Council Finance Committee to conduct a study of the economic impact of recreational boating in the city to determine if the tax rate reduction strategy had been effective in growing the recreational boat industry, marine industry generally and the associated economic impact to the City. The City Council Finance Committee in turn selected a Boat Tax Subcommittee to manage the process and to report back to the full committee; and

 

WHEREAS, the completed study on the Assessment of the Economic Impacts of Recreational Boating in the City of Hampton confirmed that boat ownership and enjoyment of recreational boating constitute a significant economic engine for the City. Spending by recreational boaters generated an economic impact in 2007 of $55.03 million and over 690 jobs to the City. As a result of that economic impact the City gains $2.29 million in additional tax revenues. This was a significant increase over recreational boaters spending of $35.9 million in 2002 (the year prior to reducing the taxes on recreational boats); and

WHEREAS, the Boat Tax Subcommittee agreed that the 2002 decision of City Council to effectively eliminate the boat tax has had a positive net economic benefit for the city, and further concluded that re-imposition of a boat tax would have a net negative economic impact on the city; and

 

WHEREAS, the subcommittee also recognizes that there are qualitative factors that Council must consider in addition to the compelling quantitative data, including perception of fairness and equity; recognition of the importance of the Citys waterfront as our greatest natural asset and the role it plays in the long-term economic health of our City; the role that a nominal boat tax may play in the future enhancement of waterfront residential and marina development creating higher value housing the city needs; the role that a nominal boat tax will play in the future plans for development of Ft. Monroe; and,

 

WHEREAS, The Council Finance Committee agreed with the conclusions of the Boat Tax Subcommittee and recommends to City Council that the strategy instituted by City Council in 2002 to reduce the personal property tax on recreational boats to a nominal rate has achieved the desired outcome and should be continued.

 

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hampton, Virginia as follows:

 

1.                  That the Council accept the report Assessment of the Economic Impacts of Recreational Boating in the City of Hampton, dated January 2009, conducted by the Virginia Institute of Marine Science (VIMS); and

 

2.                  That the Council approves and accepts the recommendation from the City Council Finance Committee to continue the strategy instituted by City Council in 2002 that reduced the personal property tax on pleasure boats to a nominal rate.

 

Adopted at the special meeting of the City Council of the City of Hampton, Virginia held on April 8, 2009.

 

 

Signed by ____________________________ Date _________________

Molly Joseph Ward, Mayor

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council