City and Borough of Juneau
Finance Committee Meeting
November 5, 2003,
at 5 p.m., Chambers

I. Call to Order

II. Roll Call

III. Approval of Minutes
- Minutes of October 8, 2003

IV. Motor Vehicle Registration Tax and Abandoned/Junk Vehicles
Vehicles abandoned in the public right-of-way have been a continuing and growing problem in Juneau. Efforts to find and seek restitution from the vehicle owners has had limited success.

To deal with this problem, a junk vehicle program is being proposed that would allow all CBJ vehicle owners to have their junk vehicle towed to a designated garage for disposal. This program would be targeted at non-commercial, small commercial (<= 5000 lbs.) and taxis. The motor vehicle registration tax (MVRT) is a fair and equitable method for funding the program because it is collected on vehicles registered in Juneau thus targeting only vehicle owners. The proposed fee schedule charges only non-commercial, small commercial and taxi owners for the junk vehicle program plus the State's 8% admin fee and a 5% CBJ admin fee. The fee proposed would remain the same for the life of the vehicle.

The MVRT is collected and administered by the State of Alaska, for which they retain an 8% admin fee. If the Assembly decides the MVRT is an acceptable method for funding the junk vehicle program the ordinance will need to be in effect prior to December 31, 2003 in order for collection to start January 2005.

State statute does not allow the collection of both the MVRT and an ad valorem tax (based on the value of the property). CBJ currently collects an ad valorem tax on business personal property (BPP) and would need to recover the lost BPP revenue. The proposed fee schedule only charges vehicles registered as commercial the amount necessary to recover the revenue that would have been collected as BPP ad valorem tax plus the State's 8% admin fee. The fee proposed decreases over the life of the vehicle.

Staff will give a presentation providing more information regarding the junk vehicle program and the MVRT at this meeting.

Due to the State deadlines, it is necessary for the AFC to approve the collection of the MVRT at this meeting so that an ordinance can be introduced, adopted and become effective prior to January 1, 2004.