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Supervisors look for new taxes to share burden
Plans to broaden the county's tax base took major hits earlier this fall, when two tax increases aimed at businesses failed to gain approval, but board members say other options still are available to take pressure off the residential tax base. Possibilities include taxes on hybrid vehicles, aircraft and cigarettes.County projections show Loudoun's $1.6 billion budget falling short by nearly $200 million. The shortfall can be blamed on shrinking property values, which make up the largest part of the county's income. This means less funding for schools, roads and other county services, board members said.
When a shortfall was projected earlier this year, board members narrowly adopted increases to the residential tax rate. Approved 5-4 in April, the rate went from 96 cents to $1.14, the highest rate since 1981.
If the county were to raise the residential tax rates again to compensate for the county's increasing shortfall, residential property taxes would climb to about $1.35 per $100 assessed value, County Administrator Kirby M. Bowers told the supervisors in September.
Board members, however, said they want to avoid this.
“With the economy being what it is, people are facing tough times. Now is the wrong time to add to their burden,” said Supervisor Lori Waters (R-Broad Run).
Which is why, she said, board members are looking to diversify rather than raise residential taxes again.
So far, however, proposals on other tax initiatives have failed to gain approval.
In July, board members approved putting the meals tax on the Nov. 4 election ballot. On Election Day, the meals tax was defeated 71 percent to 29 percent.
Similarly, tax increases for businesses – the Business Professional and Occupational License Tax (BPOL) – and events admissions taxes did not make it out of the boardroom.
Supervisor Susan Klimek Buckley (D-Sugarland Run) said although she supported BPOL earlier this year, stresses on the economy and local businesses caused her to vote against the tax increase Oct. 21.
Now the board is looking at raising rates on hybrid and alternatively fueled automobiles and aircraft, which are taxed 1 cent per $100 assessed value. Traditional automobiles are taxed $4.20 per $100.
Although some board members say taxes on alternative cars remain lower to promote environmental friendliness, Supervisor Eugene Delgaudio (R-Sterling) says it's a tax break for the rich.
“These are rich people buying brand-new cars,” he said. “We're encouraging them to not pay taxes. It's a social program.”
Delgaudio also favors tax increases for aircraft, which he said will generate about $16 million. Opponents say any tax increase could hurt business at Leesburg Executive Airport.
Meanwhile, supervisors have approved asking the state for permission to levy a cigarette tax; this proposal is headed to Richmond to be put in the General Assembly's hopper.
“The towns have it -- why don't we?” asked Supervisor Sally Kurtz (D-Catoctin). Some of Loudoun's towns levy as much as 50 cents a pack on cigarettes.
Even if all the proposed alternatives were approved, Loudoun's leaders say, spending cuts still would be necessary.
“Spending is out of control in the county,” Delgaudio said. “You have to say no to things that are not relevant to the county.”
Supervisor Jim Burton (I-Blue Ridge) said, “You have to figure out what your priorities are. Fire and safety are probably the highest priority, and then the schools. Every jurisdiction is going through the same thing.”
Raising taxes during economically bleak times is difficult, Waters said.
“Our ability to diversify revenues is a good idea, but it's not going to happen,” she said.
Contact the reporter at hhobbs@timespapers.com
Lori Waters you are a hypocrite, in one hand you say "people are faced with tough economic times" and yet you want to explore additional taxes. County Supervisors wake up, we are in a recession, cut back on the sepnding. If people are having a tough time paying their bills they do not add an addition to their house. Lay off staff and reduce spending until the economy gets better. It is basic economics.
Posted by disgustedtaxpayer
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We are taxed too much. Perhaps a fine on businesses who hire illegals. Stop the tax insanity. Let's encourage growth not punish those who work hard to earn a living within the law. Stop pitting class against class, and allow everyone the opportunity to succeed.
Focus on necessity not on desire. We need fire and rescue. We need schools. There are programs we desire, but do not need. Cut them!
Posted by mchevrier
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this BoS will do the expected thing, raise the rate to something like $1.25 and claiming that they are cutting costs.
instead of hitting the hatrick empire, the citizens will have to dig deeper, but the fact is that we have nothing left to give.
history shows us that tyranical leaders often do not last long. 2011 couldn't come fast enough!
Posted by BTO
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