Jan 02, 2025
SUFFOLK, Va. (WAVY) — After several years of surplus revenues and rapid growth, the city's longtime treasurer thinks its time to get away from charging a vehicle license fee. Ron Williams, who's served as Suffolk's treasurer for 43 years, made the proposal as part of a trio of initiatives meant to provide tax relief. In a letter sent to City Council, Williams said he also wants to shift the personal property tax — also known as the "car tax" — due date to align with neighboring cities and provide personal property tax relief to elderly and disabled residents. While Suffolk City Council will have the ultimate say, Williams, who is also an elected official, said relief can be viewed as a reward for the economic development, some of which has been criticized by residents for causing too much growth. Suffolk’s mayor says growth isn’t a ‘problem’ in his annual state of the city address Suffolk City Treasurer's office (WAVY Photo/Cortez Grayson) By far, Williams said the proposal most have asked for is changing the personal property tax bill due date. Often known as the "car tax," payment is due each year on Dec. 5. Vehicles are assessed on their value and then the city's tax rate is applied. Williams has heard loud and clear, that is not a good time. "Dec. 5 is around the holidays," Williams said. "You've got several different religious holidays that are celebrated and social holidays that are celebrated. The families want to be together during that time and and they give gifts. And so that that cuts into it." Traditionally, Suffolk had stuck with the December date, as it benefited the large farming community. "You harvested the crops in the fall," Williams said. "You paid the bills, you paid for the seed, you paid for the fertilizer, you paid the taxes." However, as Suffolk has grown to a city of more than 100,000 people, Williams thinks it's time to adapt. Virginia Beach, Chesapeake, Norfolk, Portsmouth and Isle of Wight County all have June 5 due dates for personal property taxes. "We can improve the overall management of the tax collection process and make it better for our citizens overall … to move it to June 5," Williams said. Currently, taxpayers pay a license fee as part of the their personal property tax bill. The fee is determined by the amount of the vehicle's gross weight. All seven cities currently charge the fee. "The fee, which was originally established to replace the city decal, was intended to provide for a stable stream of revenue at a time when Suffolk was not as financially strong or economically thriving as it is today," Williams wrote in his letter to City Council. "The fact [is] that eliminating this fee would provide additional relief to Suffolk’s taxpayers." The license fee accounts for less than $3 million annually in city revenue. "We've had $30 million surpluses for the last three years, so we can certainly afford to make this effort," Williams said. Changes wouldn't go into place until 2026 at the earliest, according to Williams. However, he made a point to say it wouldn't even be a possibility if it wasn't for the city's growth. The topic was central to the recent City Council and mayoral elections. Mayor Mike Duman only won re-election by 164 votes. "So we we have to have economic development," Williams said. "We've done it. We've done it well. And yes, this is part of the reward of that economic development."
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