DATE: Sunday, July 20, 1997                 TAG: 9707210206

SECTION: FRONT                   PAGE: A1   EDITION: FINAL 

SOURCE: BY ROBERT LITTLE, STAFF WRITER 

DATELINE: WHITE SULPHUR SPRINGS, W.VA.      LENGTH:  179 lines

GILMORE, BEYER SPAR FOR TITLE OF TAX-CUT KING VEHICLE LEVY DOMINATES GUBERNATORIAL DEBATE

The personal property tax on cars and trucks became an early casualty of the gubernatorial race Saturday, with both candidates now promising that Virginians will pay less to drive.

Democratic candidate Donald S. Beyer Jr. announced plans to cut the tax as much as $250 for most Virginians. Coupled with Republican candidate James S. Gilmore's months-old promise to virtually eliminate the tax in four years, Beyer's announcement ensured that Virginia's next governor - whoever it may be - will take office in January promising to bring the personal property tax down.

Coming at the beginning of the two men's first face-to-face debate, the news sparked a 90-minute melee filled mostly with each candidate explaining why his plan is better. Beyer called his proposal cheapest and said Gilmore's would bankrupt the state. Gilmore called Beyer's a token and even suggested that his own plan could help reduce teen-age pregnancy when a panelist posed a question about that.

They touched on other issues but steered back to discussion of the tax repeatedly.

``I guess the good news is that Virginians are going to get personal property tax relief next year,'' said Beyer.

Virginians also seem certain to get a heavy dose of tooth-and-claw campaigning in the coming months. The candidates sprayed criticisms that, while always polite, grew increasingly personal. Phrases such as ``Under Jim Gilmore, the polluters had a field day,'' or, ``There will always be naysayers like you, Don,'' grew common, resulting in a biting civility that set a new tone for debate.

Gilmore seemed surprised when Beyer, in his opening statement, endorsed cutting the car tax. The Democrat has repeatedly decried Gilmore's proposed tax cut as reckless and irresponsible.

``Ladies and gentlemen, you have just seen George of the Jungle, swinging back and forth from tree to tree,'' Gilmore said, pointing across the stage at Beyer and shaking his head. ``But sooner or later, he hits the tree of truth.''

Under Beyer's plan, families earning $75,000 or less would receive a credit on their income tax equal to their personal property tax bill - up to $250. Individuals earning $40,000 or less would get a $150 credit. Virginians would continue to pay the car tax, but the income tax credit would serve as a reimbursement, Beyer said. Local governments - which collect the property tax - would feel no impact.

Gilmore's plan is much different. He proposes eliminating the property tax for cars and trucks worth $20,000 or less. More expensive vehicles would be taxed only on the value over $20,000. Gilmore would then reimburse the local governments from the state treasury.

Beyer said his plan would cost the least and help the most. It would take effect immediately upon passage rather than being phased in, and would cost the state $202 million each year, he said. Gilmore expects his plan to cost $1.6 billion over five years, though local government groups estimate twice that.

``The Gilmore plan is the worst of both worlds - it's too little at the start and too much at the end,'' Beyer said.

Gilmore said Beyer was simply ``waving the white flag,'' having realized that elimination of personal property taxes is such a popular idea that neither candidate can win without it. He will cut the tax the most, he pointed out, paying for it with $5.5 billion in economic growth the next five years. And Beyer's plan would take effect too fast - the state doesn't have enough money to finance a tax cut immediately.

``Don Beyer's a millionaire, and I don't fault him for that,'' Gilmore said. ``But I don't think he really understands the impact of this personal property tax on working families.''

Gathered at The Greenbrier resort for the annual Virginia Bar Association convention, the candidates did not limit their discussion to tax cuts.

They discussed their education agendas - Gilmore proposes hiring 4,000 new teachers and giving college scholarships based on grades; Beyer proposes spending money to raise teacher salaries and giving college scholarships based on need.

And they questioned each other's motives - Beyer said Gilmore is ``fighting for the Pat Robertson education agenda,'' and Gilmore said Beyer is ``buying the teachers union endorsement.''

Typical was an exchange in which Gilmore said ``only a liberal Democrat'' could propose what Beyer's proposing.

Beyer then called Gilmore ``the only liberal in this race'' because he ``let polluters do anything they want to do.''

Gilmore, seeming almost hurt, said no one has ever called him a liberal before. ``I guess that when you're a liberal you've got to pretend you're not a liberal by calling someone else a liberal,'' he said. ILLUSTRATION: Color photo

Donald S. Beyer now proposes a car-tax cut.

Graphics

THE TWO PLANS

Gilmore's plan: Eliminate property tax for cars and trucks worth

$20,000 or less. More expensive vehicles would be taxed only on the

value over $20,000 and the state treasury would reimburse the local

governments.

Beyer's plan: The car tax would remain intact, but families earning

$75,000 or less would receive a tax credit up to $250 and

individuals earning $40,000 or less would get a $150 tax credit.

GILMORE'S PLAN

James S. Gilmore's proposed personal property tax cut:

WHO

Owners of cars worth $20,000 or less. Subtract $20,000 from the

value of more expensive vehicles and tax only the difference. Break

would not apply to vehicles owned by businesses.

WHEN

Gilmore's plan would be phased in over four years.

HOW

Tax would be collected at the local level. Gilmore says the

state would reimburse localities ``dollar for dollar'' for revenues

lost.

COSTS

$1 billion during the four-year phase-in period and $620 million

a year thereafter.

Local government groups estimate twice that.

IFFY

Gilmore says the tax repeal would receive lower priority than

plans to hire 4,000 elementary school teachers and provide

$2,000-a-year college scholarships to high school graduates with

``B'' averages and good citizenship records.

If the economy turned downward, Gilmore said, he would delay the

tax cut before sacrificing any programs.

A leading scholar thinks the proposal is unconstitutional. Legal

wrangling could affect implementation.

THE CANDIDATES

DONALD S. BEYER JR.

Personal: 46 years old, lives in Alexandria with his wife, Megan;

father of a son and three daughters.

Education: Williams College. BA, 1972

Employment: Don Beyer Motors; truck driver, mechanic, sales,

general manager, president and co-owner, 1974-1989; vice president,

1989 (post election)

Political activities: Lieutenant Governor, 1990-present,

Governor's Commission on Efficiency in Government, Virginia Economic

Bridge Initiative, 1991-present.

JAMES S. GILMORE III

Personal: 47 years old, lives in Richmond with his wife, Roxanne;

father of two sons.

Education: University of Virginia, BA, 1971, JD, 1977

Employment: LeClair Ryan Law Firm (after June 11 resignation as

attorney general)

Political activities: Commonwealth's attorney, Henrico Co.,

1987-1992; attorney general, 1993-1997

STATEWIDE RACES:

(Six candidates)

Governor: Donald S. Beyer Jr., D., vs. James S. Gilmore III, R

Lt. gov.: L.F. Payne, D., vs. John H. Hager, R.

Attorney general: William Dolan, D., vs. Mark L. Earley, R.

BEYER'S PLAN

Donald S. Beyer Jr.'s proposed personal property tax cuts:

WHO

Married couples with Virginia adjusted gross income up to $75,000

and singles with income up to $40,000 would qualify for a tax

credit equal to the personal property tax paid on one or two

vehicles up to $250 (if married) and on one vehicle up to $150 (if

single). Break wouldn't apply to vehicles owned by businesses.

WHEN

Would go into effect immediately after passage by General

Assembly. Virginians would get the credit for taxes paid in 1998.

HOW

Virginians would pay the car tax to their local governments and

file for the credit with their May income tax filings.

COSTS

$202 million in one year, $808 million over four.

IFFY

- Gilmore's campaign says the Beyer plan is based on numbers that

don't compute. Ultimately, it would ``require substantial spending

cuts or a tax increase in its first year,'' said Bryan Slater,

Gilmore's campaign manager. KEYWORDS: GUBERNATORIAL RACE VIRGINIA CANDIDATES

ISSUES PLATFORMS

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