Fredericksburg.com - Stafford schedules BPOL hearing

search local
Follow us on Twitter Find us on Facebook

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

Stafford schedules BPOL hearing
Stafford will consider BPOL

Date published: 6/4/2008

BY KAFIA HOSH

Stafford officials will soon consider a new business tax, the first step in achieving possible approval of the controversial levy. The Board of Supervisors voted 4-3 yesterday to hold a public hearing about implementing the Business, Professional, and Occupational License Tax. The board will consider charging half of the maximum rate allowed by state law during the meeting next month.

Supervisors Cord Sterling, Paul Milde and Mark Dudenhefer voted against the public hearing.

BPOL is a tax on businesses' gross receipts. Stafford is one of the only area localities that does not charge BPOL. About half of the state's counties, most of its towns, and all of its cities have a BPOL tax, according to the University of Virginia's Weldon Cooper Center for Public Service.

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

BPOL supporters have said it could serve as a potential revenue source, especially in the wake of county budget cuts due to declining sales and real estate tax revenue.

However, Stafford business owners already are facing higher tax bills because of a 28 percent increase in commercial property values during a recent reassessment. And commercial property owners along State Route 610 and U.S.17 are paying a service district tax to help fund road improvements.

Bob Hagan, president of the Fredericksburg Regional Chamber of Commerce, argued BPOL will only stunt future business growth in Stafford.

"There are some who believe it will not affect businesses coming to Stafford," said Hagan, a former Spotsylvania County supervisor. "How did you decide that such a decision will not prevent people from getting jobs closer to their homes?"

The Stafford Economic Development office uses Stafford's lack of a BPOL tax as a recruiting tool. Among Virginia localities, Stafford ranked fourth in new business growth between 2002 and 2007, according to the Economic Development Department.

Milde, who owns a hardware company in Stafford, said the tax is "going to roll up the red carpet we put out for businesses. A vote of 'yes' here is a slap in the face for the business community, who has been double-taxed in the last year."

The public hearing on BPOL will be held July 1 at 7 p.m. in the County Administration Center located at 1300 Courthouse Road in Stafford.

Kafia Hosh: 540/735-1977
Email: khosh@freelancestar.com


The BPOL tax is on gross receipts from a business. Localities can set a minimum amount of gross income before the tax would kick in, which could end up exempting mom-and-pop stores.

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.

Stafford already charges 14 different business-related taxes. For example, the business property tax is on everything a firm owns, including computers, desks and other materials.

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.



Date published: 6/4/2008



Most recent reader comments:

Viewing 5 out of 6 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.

Ignoring the facts (posted by DeanFetterolf , June 4, 2008 1:41 pm)    0 likes
Ignoring the facts won't change them but thats what the BOS, the EDA, and the Chamber of Commerce continue to do. 14 years of steady growth of BPOL revenue to the coffers in PrWm, Spotsy, Fredericksbug show NO loss of business. $240M over 14years is not chump change. There is a $100K threshold, no more merchants capital (inventory) tax and like all business expenses its dedcutible. Business comes to Stafford for its location and the quality of work force - Not the lack of a BPOL.

Educate me 222 (posted by KL , June 4, 2008 1:00 pm)    0 likes
I agree with Nicksmama. Tax them and spend this money to support our schools. Better schools will bring good businesses. It may impact the price of the services we get, however, I'm willing to pay more to give my kids better education.

Facetious satire (part III) (posted by MtMav , June 4, 2008 10:18 am)    0 likes
Comrade Fetterolf, just read the "hysterical rhetoric" spewed forth by Mr. Hagan. It's worse. His words constitute hate speech and not a reasonable counter arguement against BPOL. (The KGB will deal with that Capitalist later). Comrades Fetterolf, Chiswald and WeimCity ..... forget "Workers of the world unit" ........ Taxaholics of the world unite! Sincerely yours, Che.

Facetious satire (cont). (posted by MtMav , June 4, 2008 10:08 am)    0 likes
received *ONLY* a 28% increase in commercial property values/taxation. The temerity ....... Comrades, those properties should have received at least a 60% increase. The imposition of a "service district tax" is certainly fair and, will undoubtedly cause new businesses to locate in these districts. Staff Cnty has broken the code and is certainly on its way to taxing itself to prosperity. Don't ever cut the size and scope of government. Like an invasive cancer, grow it thru taxation. (cont).

Facetious satire (posted by MtMav , June 4, 2008 9:57 am)    0 likes
IMPOSE BPOL NOW! Afterall, Staff Cnty *ONLY* imposes 14 different business related taxes currently (never mind Commonwealth and Fed.). Why not 15, 20, or 25 different taxes. Better yet, declare these businesses the equivalent of "indentured servants" and have all their revenues flow directly into Staff Cnty ....... that will teach business a well deserved lesson and be "just like money in the bank." Why should business owners earn a fair living and provide jobs? WHAT? Business owners (cont).

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... .

Posting guidelines

1. Be respectful. No personal attacks.
2. Please avoid offensive, vulgar, abusive, hateful or defamatory language.
3. Agree to read & follow THE RULES.
4. Use the "report to admins" link for posts which violate the rules. 5. Keep it on-topic. Posts which contribute nothing of value to the conversation will be deleted.

Username:
Password:

Post title:


Please keep it brief (Limit is 512 characters). Please note, attempts to circumvent this limit by making
multiple posts back-to-back (ex: 'continued', 'part1, 2', etc) will be deleted.

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.









The Free Lance-Star fredericksburg.com 93.3 WFLS Print Innovators Classic Rock 96.9 99.3 The Vibe wntx radio