ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Thursday, December 14, 1995 TAG: 9512140018
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
DATELINE: BLACKSBURG
SOURCE: ELISSA MILENKY STAFF WRITER
Remembering Gov. George Allen's efforts last year to repeal a business tax the town uses to help pay for services, the Blacksburg Town Council placed support of the tax at the top of its annual legislative wish list.
The Business, Professional and Occupational License tax, which is based on a business' gross receipts from the previous year, generated $630,917 for Blacksburg and accounts for 6.2 percent of the town's revenue.
Critics of the tax, including the state and local chambers of commerce, say it is unfair because it penalizes small start-up businesses, discourages development and must be paid even when a business has not made a profit. But repealing the tax, council members said, would mean either a reduction in services or an increase in other local taxes - more specifically in the real estate tax. The council would favor a revenue-neutral tax, however.
"All things that have been taxed have pretty well been looked at," said Blacksburg Mayor Roger Hedgepeth, who spoke during a council work session Tuesday night. The work session was held to present the list of legislative proposals for the 1996 General Assembly session to Del. Jim Shuler, D-Blacksburg.
Shuler, a veterinarian, said a tax based on gross revenue instead of net profits is inequitable, especially for new businesses that tend not to make a profit during the first three years. Instead, Shuler envisions a compromise, though he predicted a bill to repeal the tax would not make it to the floor next year.
"I don't see any great change from last year," he said.
Though the council's support of the tax is nothing new, its existence on the annual town's legislative list is. Most of the other issues the town council wants legislators to tackle during this legislative session are similar to last year's requests.
The council is continuing its support of a direct road between Blacksburg and Virginia Tech to Interstate 81 and is urging the General Assembly to authorize funding and construction of the project. The proposal purposely makes no mention of "smart" technology.
"I think it's important that we keep the focus on the correct issue - the direct link," said Councilman Waldon Kerns, who added that a link is vital to relieving future traffic problems.
Other legislative proposals include:
Maintaining state funding for police departments.
Repealing a House bill that requires localities to allow single-wide manufactured homes on any lot within an agricultural zoning district. Instead, local governments should decide whether a particular land use fits in with the purpose and character of zoning districts, according to the proposal, which is new this year.
Adding Amtrak service to and through Southwest Virginia.
Eliminating double taxation of town residents who have to pay for county services they do not use, maintaining towns' and cities' annexation rights, allowing independent cities to revert to town or dependent city status and letting towns become dependent or independent cities.
LENGTH: Medium: 64 linesby CNB