CHESAPEAKE, Va. – The Chesapeake City Council has voted to lower its boat tax from $1.58 per $100 assessed value to $0.01, reported The Virginian-Pilot in an article today.
With the new rate, which will be effective July 1, 2005, the city hopes to stimulate waterfront development, including new marinas, according to the newspaper.
Philip D. Templeton told the newspaper that the 700-boat marina and dry storage facility he plans to open wouldn’t be competitive with nearby towns unless the tax was lowered.
While Suffolk currently charges $1.50 per $100 assessed value of recreational boats, Norfolk and Portsmouth charge a penny per $100 and Virginia Beach charges “virtually nothing,” The Virginian-Pilot reported.
Those opposing the tax cut bemoaned the loss of revenue to the city, according to the newspaper.