Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, September 15, 1993 TAG: 9309150109
SECTION: CURRENT PAGE: NRV-8 EDITION: NEW RIVER VALLEY
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Medium
It all began when Supervisor Nick Rush of Christiansburg suggested that some unspent county funds from last year be used to replace six Parks and Recreation Department canoes used for rentals and guided trips.
The suggestion angered Supervisor Larry Linkous of Blacksburg who, along with other supervisors, has fielded complaints from local merchants about unfair business competition.
Government should not be competing with private businesses, Linkous said. "I'm very sensitive to this; I will not support it in any way."
The issue has come up before, including this summer when local merchants complained about Virginia Tech taking food sales away during the national motor-coach convention in Blacksburg.
Linkous said after the meeting that he hates to see governments get involved in business that can be handled by private vendors. Governments, which don't pay taxes or license fees, don't compete on an even footing with local merchants, he said.
Itinerant merchants coming into the county without having to pay the same license fees and taxes as local merchants also have caused complaints, Linkous said.
The itinerants, who operate out of tents or the back of trucks, appear to be the biggest problem when the students return to Virginia Tech and Radford, Linkous said. "They set up for a week or two and then they're gone."
Geneva Walker, manager of Southern Discount Furniture in Blacksburg, said several town merchants are unhappy with the itinerant competition. Furniture for college students is a popular itinerant business.
Todd Smith, manager of Golden Oldies, a used furniture and antique store in Blacksburg, said he suspects many itinerants aren't collecting required state sales taxes. With the high business license fees in Blacksburg, he might be better off to close his business and buy a tent, Smith said.
Itinerants are supposed to comply with state sales tax laws and to report sales in each locality where they operate so the local 1 cent sales tax can be properly distributed, said Max Beyer, regional administrator for the state Department of Taxation in Roanoke.
The department's agents check itinerants to ensure they're paying if they happen upon them, but the state also depends on voluntary compliance, he said.
Itinerants also pay local license taxes, but Montgomery County apparently has not been collecting from itinerants who set up along U.S. 460 between Christiansburg and Blacksburg.
A county "flea-market" license of $200 a year apparently would apply to itinerants. But before the county could notify a recent furniture merchant to pay up, the merchant left the area.
The Board of Supervisors asked County Attorney Roy Thorpe to make a recommendation on what changes need to be made in county law regarding the itinerants. Thorpe said he'll probably suggest a more specific law with an increase in the yearly fee in line with those in Christiansburg, Blacksburg and Roanoke County, each of which charge itinerants $500 yearly.
Christiansburg Town Manager John Lemley said the $500 fee in that town sometimes discourages merchants from staying around. "There are some that say `thank you' and just drive on," he said.
While discussion about unfair business competition promises to continue, the debate over Rush's canoes is over. The board agreed by a 4-3 vote to buy new ones.
by CNB