DATE: Wednesday, April 23, 1997             TAG: 9704230460

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 

SOURCE: BY MAC DANIEL, STAFF WRITER 

DATELINE: CHESAPEAKE                        LENGTH:   48 lines

CHESAPEAKE HEARS FROM MANY AGAINST TAX, FEE INCREASES THE CITY COUNCIL IS TRYING TO ERASE A $19 MILLION SHORTFALL FOR THE NEXT 2 YEARS.

The City Council's hearing on a proposal to raise local fees and taxes started off with the first four speakers arguing - in support.

Then came the opponents, an hour-and-a-half's worth, all against any increase in fees and taxes.

The most adamant appeared to be John T. King Jr. He spoke at least four times, using his full five minutes each time, going so far as to accuse the council of taxing the air through a cellular phone tax.

King didn't want to see his taxes raised.

Nor did representatives from Cox Cable, Virginia Natural Gas, the local cable television commission, sellers of cigarettes, and even just plain folk.

Cable customers, opponents said, would be burdened by the proposed cable television utility tax, and sellers of cigarettes would lose customers to North Carolina and Isle of Wight County through a higher cigarette tax.

The City Council is in the midst of considering a series of new and increased taxes and fees to help erase a projected $19 million budget shortfall over the next two years.

Some of the proposed changes include:

Raising the residential gas utility tax from 25 percent of the first $7.50 a month to 20 percent of the first $15 a month. On a $50 gas bill, it would mean an extra $1.12 in taxes.

Establishing a cable utility tax of 10 percent up to the first $15 a month. That would add a maximum of $1.50 a month to each cable bill.

Raising the local cigarette tax from 20 cents a pack to 25 cents a pack.

Creating a $25 fee for building permits.

The council is expected to vote on the proposed increases at their May 13 meeting. Members scheduled a work session on the tax and fee proposal for 5:15 p.m. Tuesday, May 6.

It's the first time in 13 years that the council has faced this large of a tax and fee increase.

Since 1984, the council has voted for a total of 14 cents per hundred dollars of assessed value in new real-estate taxes. The increase was approved in 1988. However, the council at the time initiated only 9 cents of the proposed increase. Other tax increases were approved in 1984 and 1992 but were never put into effect.

The most recent tax increase came last year when the council raised local hotel and meal taxes to help pay for the city's conference center, now under construction.

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