Jeff Branscome writes about Spotsylvania County.
BPOL update not looking good
Supervisor Jerry Logan forwarded me information from the Commissioner of the Revenue that backs what he said during Tuesday’s Board of Supervisors meeting.
Businesses must file by March 1 but an extension can be granted until May 30. The gross receipts reported for 2010 are the actual earning made in 2009.
A total of 1,186 businesses filed, which means they met or exceeded the $200,000 gross receipts threshold. The county budget predicted 1,606 business would file.
What was supposed to be $3.9 million in revenue from the BPOL tax is now about $3.4 million. (Logan I believe mentioned a higher number of businesses that filed on Tuesday and provided a larger revenue amount of $3.5 million, but it didn’t match the e-mail. I will note it though just in case)
Either way, it appears the county is going to be at least $400,000 short in BPOL revenue.
Of the businesses that filed, 429 has gross receipts of $1 million or more, generating $2.67 million in revenue for the county.
There are 743 accounts that grossed below $1 million, generating $803,963 in revenue for the county.
Logan mentioned some time ago about increasing the $200,000 threshold to $1 million, saving approximately 743 businesses from paying a BPOL tax. Today, he said to me “I would still like to see the $1M threshold, but the fiscal realities of this budget will not allow it.”
Add the approximately $400,000 in lost revenue with the $1.2 million that county staff believes will be lost as a result of the state’s budget, and you have $1.6 million, or more than 1 penny on the real estate tax rate to cover the losses.
Will the real estate tax rate be 83 cents? 86 cents? 88 cents?
Make your bets.