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A measure that would have reduced the aircraft tax rate |
BY BILL FREEHLING
A proposal to reduce Stafford County's personal property tax on aircraft was voted down by the Board of Supervisors on Tuesday night.
By a 4-3 vote, the Stafford supervisors rejected a measure to reduce the aircraft tax rate from $3 per $100 of assessed value to a 1-cent rate. Supervisors Paul Milde, George Schwartz and Mark Dudenhefer voted for it.
Stafford Regional Airport officials believe reducing the tax rate is needed to compete with the airports in Manassas and Leesburg, both of which have the 1-cent rate (based on book value). Earlier this year, Stafford's Economic Development Authority recommended lowering the rate to 1 cent per $100 of assessed value. Proponents think a lower tax rate will draw businesses, aviation-related jobs, corporate hangars and more fuel sales.
Supervisors who voted against the tax cut cited noise concerns, the county's budget struggles and worries that the low rate would give the break to individual aircraft owners as well as the businesses they want.
Under the current rate, a $15 million business jet being kept in Stafford would be taxed $180,000 a year, while in Manassas or Leesburg it would be $1,500 or less. Proponents of the tax decrease think that's keeping businesses from locating their planes in Stafford.
The county takes in about $85,000 a year from tax on aircraft, and half of that comes from the emergency helicopter that's kept at the Stafford airport. Schwartz said the $85,000 is a drop in the bucket in terms of the overall Stafford budget.
Stafford Regional Airport Authority Chairman Walt George believes that a tax reduction would create development that would offset the lost revenue. Economic development officials see the airport as a key part of business development along Centreport Parkway.
Supervisors Schwartz, Milde and Dudenhefer all pointed out yesterday that $45 million in federal, state and local funds have been invested in the airport. More than that was spent developing Centreport Parkway and the Interstate 95 Exit 136 interchange. The supervisors said the airport needs to be able to compete or the investments will be wasted.
Schwartz, who brought up the matter before the board, said he thinks the proposal was rejected mostly due to how it would be perceived.
Like other local governments, Stafford is dealing with reduced revenue and is facing layoffs and budget cuts. Some see the tax reduction as benefiting only wealthy aircraft owners. Tuesday night's vote came after a dire report on finances and the need to cut back on spending.
"It didn't seem to be a good time to be talking about reducing the personal property tax rate on aircraft," said Supervisor Harry Crisp.
Crisp said he would prefer to see a cap placed on the amount of property tax that anyone would have to pay on aircraft in Stafford. That could protect businesses while ensuring that individual aircraft owners continue to pay property tax.
Neighbors of the airport have also complained about noise and harassment, and they've opposed the tax reduction. Joe Brito, who is vice chairman of the Board of Supervisors and represents the Hartwood district, said he voted against the measure for "quality of life" reasons for his constituents.
Brito noted that many have opposed the airport from the beginning, and he feared that the lower tax rate would lead to more planes flying over people's homes in the area. He said it also could reduce land values in the area.
Schwartz says he plans to bring up the matter again within the next few months. Crisp agreed that it'll likely be discussed again as part of upcoming budget talks.
Bill Freehling: 540/374-5405
Email: bfreehling@freelancestar.com
