Featured Advertisers
Wed, Nov. 25  -   -  Mobile  -  RSS
  

Make a post about this story on FredTalk. Get a printer-friendly version of this page. E-mail this story to a friend.
View the Stafford County community page

Stafford BPOL tax talks draw critics WHAT IS BPOL?

Supervisors square off on BPOL


Date published: 1/11/2008

BY KAFIA HOSH

LifeCare Medical Transports Inc. first opened its doors in Spotsylvania County more than a dozen years ago. But the fledgling business was deterred by the county's Business, Professional and Occupational License tax.

As LifeCare grew, it moved to Stafford County, which does not charge a BPOL.

"The lack of the BPOL was the determining factor of us coming to Stafford County," said Dan Wildman, co-owner of LifeCare, which has offices in Arlington, Manassas and Charlottesville.

Now, Stafford supervisors are considering imposing the tax, which already exists in half of the state's counties, most of its towns, and all its cities, according to the University of Virginia's Weldon Cooper Center for Public Service.

Wildman, along with several other business owners, listened to supervisors debate the tax at a Fredericksburg Regional Chamber of Commerce meeting yesterday.

Critics of the levy fear it will deter the business growth Stafford has enjoyed over the years. Among Virginia localities, Stafford ranked second in new business growth between 2000 and 2006, according to the Stafford Department of Economic Development. Stafford reports a 4 percent new job growth rate each year, economic estimates show.

Aquia District Supervisor Paul Milde, a BPOL opponent, said not having the tax helped fuel Stafford's economy.

"It changes us from a bedroom community to a place where you can have a high-paying job," he said. "This has worked for us. This is our golden goose."

Falmouth District Supervisor George Schwartz, an ardent BPOL supporter, said he doesn't believe businesses will move out of Stafford if the tax is enacted.

The counties of Spotsylvania, Fairfax, Prince William, Loudoun and the city of Fredericksburg all charge the tax.

"Where are you going to go?" Schwartz asked the crowd of business owners. "You're surrounded by BPOL."

Schwartz hopes a BPOL levy will take some of the tax burden off residential property owners.

Homeowners pay the bulk of tax revenue generated in Stafford. About 70 percent comes from residential property taxes, and 30 percent from levies on business, including the sales tax paid by consumers.

The BPOL also would give Stafford a way to track business activity, which could lead to more companies on the tax rolls.


1  2  Next Page  

The BPOL tax is on a business's gross receipts.

Localities can set a minimum amount of gross income before the tax would kick in, which could end up exempting mom-and-pop stores, but not big-box retailers.

Jurisdictions can set different tax rates for different types of businesses, and don't have to charge the full amount allowed by law. Spotsylvania, for example, charges half the rate allowed.

POTENTIAL REVENUE If Stafford imposed the full rate at a $100,000 threshold, a BPOL tax could bring in up to $7.8 million a year, according to the commissioner of revenue's office.

BPOL would replace the Merchants Capital Tax, which brought in about $800,000 in 2006. State law prohibits localities from charging both taxes.



Follow us on
twitter
fredericksburg.com Facebook page


Date published: 1/11/2008


Most recent reader comments:

Viewing all 3 comments. (Sorted in reverse order, with most recent post at the top.)

Display comments on this page. | Sort:

PLEASE READ: These reader comments are not moderated. Each user is solely responsible for any message (s)he posts here. The Free Lance-Star does not endorse the views expressed within these comments. All users who post to this Web site must agree to the terms of the FredTalk User Agreement. We rely on our readers to police themselves, and report any content that violates our User Agreement. In accordance with our User Agreement, we reserve the right to remove any post at any time for any reason, and will restrict access of registered users who repeatedly violate our terms. Any reader can report inappropriate content by clicking the "Report this post to admins" link at the bottom of each comment. You need not be registered to report a post.

Stupid is as Stupid does.... (posted by griffitg , Jan. 11, 2008 8:29 pm)   
As someone that sat in on the above referenced meeting here in Stafford, I am deeply bothered when I see comments like "The counties of Spotsylvania, Fairfax, Prince William, Loudoun and the city of Fredericksburg all charge the tax." What does that mean? Is Stafford like Fairfax in some way? What about Loudon County? Those counties far outshine Stafford and to compare the two is rediculous, so don't use them to justify this tax. Maybe we should abolish the BOS and take back any money waisted on it.

First $100K untaxed (posted by DeanFetterolf , Jan. 11, 2008 2:21 pm)   
In most jusristicitions the first $100K of gross receipts is expempt from the tax. The tax could create as much as $8M per year. This year Stafford County is coming up $10M short on revenue projections. The BOS is even asking the schools (who spend 85% of the budget on salaries and benefits) for $3M back.

Is BPOL tax also a tax deduction for the business? (posted by WeimCity , Jan. 11, 2008 9:27 am)   
I wonder if having to pay a BPOL tax to Stafford County is also a tax deductiable expense on Commonwealth and Federal relared issues? Additionally, small and medium businesses could be exclude from paying the BPOL tax but still be licensed to endure BOS know who is working in the country. I want to see the BPOL tax initiated

What do you think?
Enter your FredTalk username and password to post a comment on this story. If you are registered on FredTalk or another part of this site, use that login here. Otherwise, you can just REGISTER here... .

Username: Password:

Post title:


Please keep it brief: (512-character limit)
Please make sure CAPS LOCK is off. Posts in ALL CAPS will be deleted.)


By checking this box, you agree to the terms of the FredTalk User agreement.