Jeff Branscome writes about Spotsylvania County.
Supervisor Jerry Logan opines on Cole’s BPOL bill
Before I copy and paste Supervisor Jerry Logan’s full response to the debate of Del. Mark Cole’s bill to for one year remove the BPOL tax on businesses, I just want to say how happy it makes me to see the comments on my blog increasing, new people appearing, and the debate flowing. This is why I am doing this blog, for you guys and gals (Welcome Carol!). Sometimes, I will be a little goofy, throw in a little jab here and there, and hope I don’t get in too much trouble, but for the most part, this is your dais.
With that said, Jerry Logan, who one supervisor described as a "calm and wise leader", offered this summary of thoughts on the BPOL tax:
Since you asked, I will be happy to give my "two cents" to this discussion.
As you may recall, by raising the BPOL Tax threshold to $200K last year, the BOS removed this "onerous" tax from 540 of the county’s smallest businesses. We offset most of the lost revenue, as you pointed out, by removing the first $50K exemption for all businesses with over $1M in gross sales.
This year, we have 1,784 licensed businesses in the county paying $4.83M total in BPOL Taxes. Of that number, 1,125 had a gross income of less than $1M, and paid $647K (13%) of the total BPOL taxes. You see where I am going. The 659 remaining businesses that gross over the $1M threshold are paying $4.18M (87%) of the total BPOL Tax revenues.
I would suggest that the prudent course of action for the BOS to take for FY2010 would be to raise the threshold once again to $1M. This would cost the county, based on even lower future sales estimates, something less than the $647K collected from FY2009.
This would, I believe, provide a number of benefits:
1. Allow a total of 1,610 county businesses to operate BPOL free.
2. Save the Commissioner of Revenue the cost of tracking, billing and collecting the newly exempted 1,125 business accounts.
3. Make Spotsy County more competitive with Fredericksburg, Stafford, Caroline and King George for new business growth.
4. Establish Spotsy as the truly "Pro Business County" in the Region.
I believe that there are many creative ways to offset the estimated lost BPOL revenue. Spotsylvania County’s small businesses need all the help we can give them in FY2010, to remain in business and create jobs.
Jerry I. Logan Courtland District Spotsylvania County Supervisor
Spotsylvania County Supervisor