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Jeff Branscome writes about Spotsylvania County.

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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

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  • lgross

    And I appreciate the facts that he supplied – that
    show that the county apparently does have some
    latitude (sometimes in a Dillon-rule) state, it’s
    not clear.

    You know really bang-up reporting job
    …would be to do a story.. comparing Spotsy’s
    BPOL polices and revenues with it’s neighbors
    including perhaps some places to the North and
    to the South.

    Of course, it’s always easier to come up with
    great ideas for others to do!!!!!

    final thought – I like the idea that Spotsy has
    softened the bite on small businesses… but we
    ought to also recognize that BPOL is just another
    way of taxing citizens – like the sales tax – as
    businesses do not “pay” taxes – they just pass
    them on in their goods and services that they

  • gramps

    by Mr. Logan, if enacted will move the BOS closer to either further cuts in spending elsewhere or closer to raising taxes.

  • dobreshunka

    So 1000 businesses are paying $600,000? That works out to $600 per business. With all the problems Spotsy has, $600 per year per small business is going to make that much difference? $50 a month? Seriously, what business choses where it sets up shop for $50 a month? But once again, it seems like a BOS is looking at their own books when looking out for the good of the people. Dan, how much time has been invested in this by the BOS? Doesn’t this county have bigger problems?

  • dantelvock

    I don’t think a ton of time has been invested in this by the BOS, but maybe Mr. Logan has invested some time looking into it.

    It’s come up once at a board meeting and changes were made to benefit small business last year. I don’t know where Cole’s idea came from, but I don’t think the Spotsy BOS passed a resolution asking for this bill. I know they didn’t.

  • southwest

    Mr. Logan recently you were opposed to the motion made by Supervisor Pitts to prohibit any future budget cuts to come from public safety, stating that it would be “to costly.” You have failed to identify who will make up the lost revenue from your proposal. I know, you will continue to support cuts from public safety and education, this tax payer is totally against your proposal and reasoning. Your proposal will only benefit the businessman such as yourself. How about those of use who support education and public safety as a county priority? You and your Republican friend Del. Cole need to go back to the drawing board.

  • demosthenes

    Well, there are three supervisor positions open this election, if you don’t like it get out there and make a difference.
    We can all say we care about our children education and safety but that doesn’t mean they are free from accountability.
    We have seen from history that socialism doesn’t work. Every time it has been tried, it has failed. We are moving into that direction. Whenever you take the responsibility of having the final decision away from the people and move to a process of central planning you move toward socialism.

    A free market system is the most efficient and prosperous system in the world. It has been proven time and again. But…people have to be accountable for their actions. Companies must be allowed to fail and new, more efficient companies will take their place.

  • southwest

    You are correct, it is unfortunate that Supervisor Logan isn’t one of them !!!!