THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, February 5, 1995 TAG: 9502040076
SECTION: SUFFOLK SUN PAGE: 03 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 62 lines
For the 18th straight year, the Suffolk City Council has decided to remain the only city in the region with once-a-year real estate tax collection.
After eight speakers addressed the council during a public hearing Wednesday on a proposed twice-a-year tax collection, four of the council's seven members said they had heard from their constituents and that their constituents said no. So the council said no as well.
``I believe,'' said Vice Mayor Curtis R. Milteer, ``the semi-annual tax motion is dead on arrival.''
Mayor S. Chris Jones, who supported the change because it would give the city more spending power without raising taxes, was disappointed that the council and the city couldn't move the issue forward.
By not voting on the issue, the council killed it. They did agree to consider moving the due date for real estate and personal property taxes away from the current due date of December. A report on that change is expected to be presented to the council at its next meeting Feb. 15.
``I think that from the standpoint of operations, it certainly makes sense,'' Jones said. ``The majority of the people who contacted me wanted the change.''
About six of the eight speakers voiced opposition.
Most said the change was a hidden tax increase because, by taking the tax money away from citizens earlier in the year, the city would be denying them the opportunity to earn interest.
In addition, some of the speakers said this agricultural community's farmers would be more hurt by the change because of their seasonal work and income.
``Raise the tax rate openly,'' said George Tucker, who opposed the change, ``but please don't raise taxes by inefficient subterfuge.''
Businessman George Blair called semi-annual taxation a ``vampire'' that the council should kill.
''It's unfriendly to the taxpayer, and it's unfriendly to business,'' he said. ``It's a tax increase.''
City Council was considering semi-annual collection of real estate taxes as well as possibly changing the due date of personal property taxes from December to either September or October.
This semi-annual real estate tax collection was touted as benefiting both the city and citizens. The change would take some of the burden off of paying all taxes in December, a month of heavy consumer spending for the holidays. And the city would benefit by smoothing out the city's cash flow, allowing Suffolk to earn more interest off tax funds.
But that didn't fly with the speakers, many of whom quoted an old phrase: If it ain't broke, don't fix it.
The lack of action leaves Suffolk as the only local community collecting taxes in one lump sum. Chesapeake, Norfolk and Portsmouth collect their real estate tax quarterly while Virginia Beach collects semi-annually. Norfolk, Chesapeake and Portsmouth collect their personal property tax annually while Virginia Beach collects semi-annually.
KEYWORDS: SUFFOLK REAL ESTATE TAX by CNB