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.
Under state law, businesses don't have to register with localities. Registration requirements are part of the BPOL statute.
"No one here has a business license on their wall," Schwartz said. "So we're a little behind the times."
But business owners remained unconvinced. They say the BPOL levy is unfair because it taxes gross receipts and doesn't factor in expenses.
"It comes off the top before you show you've made money or lost money," Milde said.
And Stafford already charges 14 different business-related taxes. Tax revenue from businesses pumped $171 million into the county in 2006, according to the commissioner of revenue's office.
Nancy L. Rose, a Stafford resident and business owner, said her custom-framing business is taxed enough.
"You put another tax on me and I am going to go out of business," Rose said.
Schwartz noted that if BPOL is enacted, Stafford does not have to charge the full rate allowed by the state code. But that did little to comfort the business owners.
"Once it comes, it's just going to take off," said Kevin Dillard, a president of Lifecare. "It's a slap in the face that they're even considering it."
Kafia Hosh: 540/735-1977|
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 BPOL would replace the Merchants Capital Tax, which brought in about $800,000 in 2006. State law prohibits localities from charging both taxes. |