THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, February 4, 1995             TAG: 9502030046
SECTION: FRONT                    PAGE: A12  EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Short :   27 lines

KEEP BUSINESS TAX

The state treasury cannot afford to shoulder the revenue deficit that municipalities will experience by elimination of the Business, Professional and Occupational License tax. Municipalities cannot afford to lose the revenue of the BPOL tax.

The tax should be retained at least at its current level. To resort to increases in real-estate taxes as a substitute is folly. Most businesses that pay the BPOL tax either own their own facilities or rent them. Either way, the real-estate-tax obligation is paid by the business, as an owner or as a tenant, by virtue of the terms of the lease. Therefore, increasing real-estate taxes does not lessen the taxes paid by business. A local sales tax enforced on a state-wide basis would be the only logical substitute.

LAWRENCE FLEDER

Virginia Beach, Jan. 26, 1995 by CNB