Town Approves Tax Refund
Published 4:31 pm Thursday, November 4, 2010
FARMVILLE – Town Council voted unanimously Wednesday to refund one-third of the motor vehicle license tax to those who paid the tax last spring.
The decision, based on a recommendation from Town Council's budget committee, was made during council's November work session.
A list of those who paid the tax is being compiled by Town Treasurer Carol Anne Seal and the refunds will be mailed to them. Residents should not come by the Town office to receive their refund. The check will be in the mail soon.
The refund is meant as tax relief for those who paid the tax to Farmville in the spring and have gotten a bill now from Prince Edward County, paying the tax twice in one year.
Town Manager Gerald Spates explains that the refund is being calculated at one-third of what the individual paid in vehicle tags because this percentage was calculated by the months left on the existing Town tags after the County tags are purchased in December.
The Town rescinded its own motor vehicle license tax last month in order to allow Prince Edward County to collect the tax on behalf of the Town. Cumberland will do likewise for town residents living in that county beginning next year. The Town is paying an administrative or collection fee to each County.
Farmville officials made the decision because relatively few people were paying the Town's tax and those who did found it inconvenient to scrape the old decal off each spring to make room for the new decal.
The Town expects to receive more revenue with the new system because motor vehicle license tax bills will be sent to every Town resident who has a taxable vehicle.