Suspend BPOL for a year? I can hear some supervisors screaming now

If you missed this story, give it a read and pass judgment here. In 2008, Spotsylvania County received $4.9 million in revenue from the BPOL tax. If Mr. Mark Cole’s bill passes, that means the county would have to cut $4.9 million from the budget to make up the loss of this revenue. Here is why Delegate Mark Cole wants this bill passed:

"I just wanted to try to give small businesses a break," Cole said. "The key to the economic recovery is through the private sector."

Here is a story about a decision supervisors made last year with the BPOL tax, an action led by Jerry Logan, who owns an electrical contracting business. 

Any business that has gross receipts of $199,999 or less does not have to pay the BPOL Tax.  So, does this really give the small business a break?  Here is a quote from Supervisor Jerry Logan about why he is not a fan of the BPOL tax:

"The problem with the BPOL Tax is it taxes the gross revenues of the business," and not profits, Logan said. So, even businesses that are losing money still pay this tax.  "When a business is struggling to keep its doors open and having a horrendous year I just don’t think it’s right to hit them with a BPOL Tax."

On that same blog post, I assume this is an anonymous business owner who made this comment:

The exemption amount is $50,000, meaning that if I make 99,999, I pay nothing, and 100,000 leads to tax payment on $50,000 of revenue. If the exemption did not increase, then it will not help any businesses over the new threshold. Mine grosses $500,000 per year, but my expenses are almost the same!!!

There ya go. That’s more background on what’s going on behind the scenes here in the state. Would Mr. Logan still be in favor of deleting this tax knowing the county would be out $4.9 million a year? Maybe he will discuss it here on my blog. Maybe not. But the county is already staring at a projected $11.2 million shortfall for the FY 2010 budget, the school system is cutting millions from its budget because of state reductions, and now there’s the possibility of losing out on another $5 million?

I spoke with Spotsylvania County Treasurer Larry Pritchett today and he said the max any business can be taxed is $150,000 and the first $200,000 is exempt. So any business with gross receipts of $199,000 or less does not get taxed. He said there are a few businesses that pay the max, but he said the county attorney informed him that he could not disclose the businesses because it’s not public information. I suspect Wal-Mart is one of those businesses. 

Speak your minds? Businesses are hurting, as we watch Circuit City shut its doors forever. Everyone is hurting. Is this a good bill?

I know Supervisor Hap Connors thinks it is a horrible bill based on an e-mail he just sent me. 

Here are the rates for the business license:

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