THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, November 4, 1996 TAG: 9611040069
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: MADISON LENGTH: 40 lines
A bank withdrawal has knocked the wind out of Madison's tax base.
Last week, Jefferson National Bank moved outside Madison's town limits, taking 85 percent of the town's tax base with it. As a result, Madison might have to begin collecting a property tax for the first time since 1993, town clerk and treasurer Helen DeBord said.
The bank had operated two locations in the town of about 300. But when a lease ran out on one location, the bank decided to consolidate both branches into one office. The new branch opened Oct. 28.
The bank looked in downtown Madison for suitable sites for a new building, but could not find one, Jefferson National Bank Central Region President James Berry said.
William Lamar, vice mayor of Madison, said the town drew about 85 percent of its budget from a franchise tax on the bank's deposits. The bank will now pay the tax to Madison County.
Lamar said the town is not sure how it will make up the lost revenue from the bank.
DeBord said Madison has enough money to complete its current fiscal year, which ends June 30. After that, the town will have to come up with a new source of revenue, possibly a real estate tax.
Madison's chief expense is keeping its streetlights working, DeBord said. Other items include office rent and supplies, and her salary.
Bank customers had mixed emotions about the move.
Rebecca Nilson-Owens of Madison said it was nice to have a bank as part of Madison's downtown historic district.
``I hate to see things moving closer to the highway,'' she said. ``It was nice to go into the bank and see everybody.''
Others said they could understand why Jefferson would want to combine its two branches.
``I can see how it would be a whole lot cheaper for them to consolidate,'' said Rose Jones. ``The employees probably like it.'' by CNB