Virginia Beach to vote on revised budget that scraps boat tax for annual fee Tuesday
VIRGINIA BEACH — An armada of mariners spoke out against a hefty boat tax in Virginia Beach this budget season leading the City Council to retract the proposal.
Instead, council members have informally agreed to charge boat owners an annual licensing fee.
Multiple other changes have been incorporated into the proposed fiscal year 2025-26 budget during a last-minute process called reconciliation.
Funding redirected from other parts of the budget, as well as increases in the estimated reimbursements from state revenue, will cover most of the changes, according to city Budget Director Kevin Chatellier.
The city's total proposed operating budget remains at $2.8 billion, a 4.7% increase over the previous year. The Capital Improvement Program budget, a six-year plan, is $5.6 billion.
The City Council will vote on the budget Tuesday.
Some of the last minute changes and additions include:
A pleasure boat annual registration fee will be charged in 2026. The fee will be tiered based on size of the vessel and will range from $20 to $500. The revenue generated will be applied to future dredging needs.
Rudee Park development funding will be reduced by $10 million, bringing the total budgeted cost of the project to $50 million. The reduction aims to preserve bonding capacity in the Tourism Investment Program Fund for future needs.
The economic development department will be provided an increase of $250,000 to facilitate a Façade Improvement Grant program specifically for business along Atlantic Avenue.
The East Coast Surfing Championship (ECSC) will receive an additional $75,000, bringing the total city support up to $100,000 for the event.
The Neptune Festival will receive an additional $50,000, for a total of $525,000.
A controversial tax increase — upping the city meals tax by half a percentage point to 6% — will likely remain in the budget, despite some council members pushing back against it. The increase is projected to generate more than $9 million annually, which will be dedicated to public safety projects and judicial administration, according to the reconciliation document.
Dozens of other reconciled changes can be viewed on the city's online budget page at budget.virginiabeach.gov.
Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com
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