Play follow the leader, Norfolk

The editorial in today’s Virginian Pilot takes on the possible reappearance of the boat tax.

Virginia Beach, to pick one example, in 2002 dropped its levy to $.000001 per $100 of value from $1.50. That made the tax on a $10 million boat precisely 10 cents.

While that’s the kind of tax priority owners can applaud, it had the perverse effect of essentially raising the taxes for every Virginia Beach resident who doesn’t own a boat.

At the time the cities around here reduced the boat tax rate to such ridiculous levels, the idea was it would attract more boats.

Except that according to Old Dominion University’s 2005 analysis of municipal boat taxes, it didn’t work. In fact, despite all those cuts, Hampton Roads actually had fewer boats in 2004 than in 1998. And all the cities that slashed taxes lost more revenue than they gained by moving a few boats and their owners from place to place.

So Virginia Beach, who spends a pile of money dredging, is looking to increase the boat tax to $1 per $100 of assessed value. Norfolk should do the same. The current rate of one cent per $100 is simply too low. Boat owners should pay their share, right along with the rest of us.

Oh and Portsmouth? You started this march and now want to pass the baton. Just do the right thing and impose a reasonable tax on boats.