CHESAPEAKE, Va. – A proposal to lower property taxes on boats in Chesapeake, Va., will be considered next week by the city council in hopes of stimulating the boating business in the area, the Virginian-Pilot reported in a story yesterday.
Chesapeake has the highest boat property tax rate in South Hampton Roads area, charging $1.58 per $100 of assessed value, according to the newspaper. The city’s Commissioner of the Revenue office stated that on average, boaters pay $87 a year in taxes.
Chesapeake’s leaders will look into reducing the tax “significantly” to encourage marina development, Mayor Dalton S. Edge told the Virginian-Pilot.
“I want to see what the numbers are and compare to those of other cities,” Edge said. “We want to be competitive with other cities.”
Supporters of reducing the boat tax argue that the loss of that income could be recouped and even multiplied when more businesses come to town and boaters start to spend their dollars eating and shopping in the city, the newspaper reported.
“The numbers are very clear that we need to take some positive action,” Councilman W. Joe Newman told the newspaper. “The city is losing business.”