ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, June 26, 1996 TAG: 9606260060
SECTION: VIRGINIA PAGE: C-1 EDITION: NEW RIVER VALLEY
SOURCE: CHRISTINA NUCKOLS STAFF WRITER
Orthodontists feel pain, too, and several in Roanoke County are wincing in unison at an increase in their gross receipts tax.
At a public hearing Tuesday before the Board of Supervisors, three of the four speakers opposing changes to the business, professional and occupational license tax were orthodontists. They face at least a 16percent tax increase for the fiscal year that begins July1.
``I'd rather be straightening teeth than talking in front of you,'' Dr. O.W. Clifton told the supervisors.
Clifton called the tax, which is levied on gross receipts rather than net income, ``the most unfair tax that's ever been put my way.''
He acknowledged that changes approved in this year's session of the General Assembly spurred the supervisors to shift more of the tax burden to people like himself, but some of his colleagues were less understanding. Jim Morgan, who said he has been in practice for 36 years, compared the gross receipts tax to ``extortion.''
``I know if you keep tying anchors to small businesses, you're going to do them all in,'' he said.
The General Assembly this year exempted all businesses with gross receipts of less than $100,000 from paying the tax but gave cities and counties the power to charge a $50 flat fee instead. The $50 fee did not restore all of the $460,000 Roanoke County stood to lose from the exemption for smaller businesses, so supervisors were given the option to raise the tax rates for two categories of businesses. For financial, real estate and professional services (including orthodontists), the rate will increase from 50 cents per $100 of gross receipts to 58 cents. For repair, personal and business services, the increase will be from 34 cents to 36 cents per $100.
Supervisors approved the tax changes, noting that they were merely maintaining last year's level of tax revenue.
Under the tax changes, 2,751 businesses will pay between 25 cents and $50 more. Another 2,732 businesses will pay less.
The four critics Tuesday night represented only a fraction of the business owners affected by the tax. The Salem-Roanoke County Chamber of Commerce distributed letters to its members about the business license tax and received only three responses, said executive vice president Judy Grisenbrock.
Roanoke County also mailed out notices of Tuesday's public hearing to the 4,500 affected businesses. Anne Marie Green, the county's director of community relations, said fewer than 50 people called with questions.
Only one person showed up to challenge a proposed 4percent increase in the supervisors' salaries, which were raised from $10,690 to $11,117. Political activist Don Terp told supervisors they should forgo a raise this year. He also criticized the county's system of financial accounting, saying it was too confusing for most residents to understand.
In other action Tuesday, supervisors indicated their support for a proposal to swap property with Richfield Retirement Community. Under the plan, which must be voted on after a public hearing next month, Richfield would get 5.4 acres assessed at $113,200 adjacent to the Glenvar Library on Daugherty Road. In exchange, the county would obtain three parcels totaling three acres assessed at $100,000 at West Main and Garman Road.
Richfield plans to use the land beside the library to build a $4million Alzheimer's center. Economic Director Tim Gubala said the land the county would receive would be better for commercial use and would be marketed to attract new businesses.
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