Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 17, 1990 TAG: 9004170307
SECTION: VIRGINIA PAGE: B3 EDITION: STATE
SOURCE: SHARON HODGE SPECIAL TO THE ROANOKE TIMES & WORLD-NEWS
DATELINE: COLLINSVILLE LENGTH: Medium
At a public hearing on the 1990-91 proposed budget, William Brammer told the Board of Supervisors that utility taxes are driving industries away from the county.
Henry County expects to raise more than $1 million by increasing utility taxes from 5 percent to 8 percent, said County Administrator C. Lee Lintecum. The levy would affect only commercial or industrial users and would not affect residential customers, he said.
Brammer said that higher taxes would make it harder to attract new industries. Bassett Furniture Co. is closing one of its county plants.
According to Brammer, the cost to operate the company in the county was high in comparison with other locations outside Henry County and Virginia.
"Industry is the lifeblood of the county. We cannot increase the tax base unless there are jobs here," Brammer said. The furniture plant that is closing employs about 400 workers. It is being consolidated with another Bassett operation.
During the public hearing Monday, the board also was advised to consider levying a meals and lodging tax to generate revenue during race weekends, when Henry County has peak tourist activity.
Lintecum said the tax is being considered, but revenue projections are difficult to make. Also, the county would have to hold a referendum to enact a meals tax.
Lintecum said it is likely that the county will pursue the meals and lodging tax as a source of income for future years. He added that proposed legislation may remove the referendum requirement, which will make the levy less complicated.
Next year's budget also calls for an increase in automobile decal fees and imposition of a recordation tax.
by CNB