Return to timeline: Pre-June 2002
DITCH STICKER, ADD FEE TO REGISTRATION
Philip J. Kellam, Commissioner of the Revenue:
The Virginia Beach Beacon
© April 14, 2002
The city sticker should be eliminated. It is an unnecessary hassle for everyone and a waste of our time and money. It really is no longer necessary.
Since 1999, I have relied on the Virginia Department of Motor Vehicles' state vehicle registration records to discover personal property rather than local records compiled by the city treasurer through city sticker sales. In fact, my staff has discovered thousands of vehicles in Virginia Beach not found through city sticker sales. We simplified our methods and produced millions of dollars in new and annually recurring revenue to the city of Virginia Beach, no thanks to the city sticker! The common sense efficiency is obvious. Think about it, which registration is a priority to you, the state license plate or the city sticker?
Over the past six months, I have worked steadily with the city's Department of Finance and the DMV developing plans that eliminate the city sticker for the city council's consideration. While members of the City Council have expressed interest in any plan that improves the registration process, all members seem reluctant to eliminate the fee they levy on the local vehicle registration. Working together, we have produced two plans that meet their objectives.
Both plans eliminate the city sticker. Both plans assist the city treasurer in collecting delinquent taxes. Both plans retain the local registration fee. Both plans eliminate almost 1 million pieces of mail generated by the city sticker process.
One plan, The DMV Plan, combines the local fee with the state registration fee. The other plan, The Bill Plan, combines the fee with your personal property tax bill.
The DMV Plan is clearly better for taxpayers. It consolidates all vehicle registrations with the DMV. It offers convenient options such as credit-card payment and online access anytime, not just in-line access sometimes. The DMV Plan also spreads the registration renewal dates over twelve months rather than consolidating all payments in a single month. This eliminates the gridlock created by having only one due date for everyone. The Bill Plan does not offer any of these options and cannot offer statewide office locations.
Some people have questioned any plan that eliminates city stickers. For instance, how will city resident be identified to receive discounted parking rates at city lots and free access to the city dump? The answer is simple, their driver's license.
Another concern was if Virginia Beach doesn't have a city sticker, will authorities in other localities stop or ticket Virginia Beach resident traveling there? Again the answer is simple, no. The Virginia Court of Appeals ruled on this very question in 1995. Furthermore, state and local police officers identify vehicles by the state license plate issued by the DMV, not the city sticker.
Regrettably, an unreasonable concern has been raised to instill fear and distract from the common sense simplicity of eliminating city stickers. Opponents have said if the city sticker registration process is eliminated, then citizens will not pay their personal property taxes. That is nonsense!
Such scare tactics should not be tolerated especially when better alternatives are available. For almost a decade, state law has allowed local treasurers to enter into agreement with the DMV. State license registration or renewal is denied to any delinquent taxpayer without the permission of their local treasurer.
Across Virginia, 71 of 135 localities utilize this tool to assist in the collection of personal property taxes, but not the Virginia Beach treasurer. Why? This program is cheaper than collection methods currently used by the treasurer. In fact, the treasurer's current procedures demand a $25 processing fee, which is higher than the processing fee charged in either the DMV Plan or the Bill Plan.
The city sticker has become a waste of time and money. Who hasn't complained about the annual glut of mail and the endless lines employed by the city treasurer to sell registration stickers and collect delinquent taxes? As commissioner of the revenue, I see the current use of the city sticker as inappropriate and ineffective. It's like using a hammer to drive a screw!
On this issue: decisions concerning the city's budget and the levy of taxes and fees reside with the city council; decisions concerning the discovery, registration and assessment of personal property reside with the commissioner of the revenue, and decisions concerning the billing and collection of taxes and fees reside with the city treasurer.
As locally elected officials, we should use common sense and exiting state law to relieve the citizens of Virginia Beach of the unnecessary burdens imposed by the city sticker.
Call on me personally at 427-4251 or visit www.nocitysticker.com to share your ideas and opinions or for more details on this issue.