05-10-2000 Tax Structure MinuteMEETING WITH THE TAX STRUCTURE COMMITTEE
MINUTES
May 10, 2000
Supervisors in Attendance:
Mr. Arthur S. Warren, Chairman
Mrs. Renny B. Humphrey, Vice Chrm.
Mr. Edward B. Barber
Mr. J. L. McHale, III
Mr. Kelly E. Miller
Mr. Lane B. Ramsey
County Administrator
Tax Structure Conunittee Members:
Mr. Norman R. Arnold
Mr
Dr
Mr
Mr
Mr
Ms
Mr
Mr
Mr
Ms
Mr
Mr
Bill Baxter
Walter Beam
Larry Belcher
J. Stephen Erie
Frank Genovese
Patricia Harper
Mark Long
Bob Palmer
David Robinson
Susan Sprigg
Gary Thompson
James Traudt
Staff in Attendance:
Ms. Rebecca Dickson, Dir.,
Budget and Management
Mr. James Dunn, Dir.,
Economic Development
Ms. Kathryn Kitchen, Asst.
Supt. of Schools for
Business and Finance
Mr. N. E. Carmichael,
Commissioner of Revenue
Mr. Steven L. Micas,
County Attorney
Mr. Warren called the adjourned meeting to order at 7:40 a.m.
He welcomed members of the Tax Structure Committee and
introductions were made. He expressed appreciation to Mr. Walt
McIntyre and Mrs. Alice McIntyre for catering the breakfast
meeting.
Mr. Thompson presented a summary of the committee's progress to
date and stated that the process thus far has been focused on
education and review of general background information. He
reviewed the initial guidelines provided to the committee by
the Board and stated that it is the committee's desire to work
"in sync" with the Board's vision for the future and consistent
with Economic Development objectives. He requested input from
the Board relative to the committee's process and the time
frame for submission of recommendations.
Mr. Ramsey provided information relative to the tasks assigned
to the Tax Structure Committee and offered the support of
County staff. He stated that, in order to have an impact on
the FY2002 budget process, the committee must make
recommendations to the Board by November 2000.
Mr. Miller requested that the committee provide recommendations
to the Board in November 2000. He suggested that the committee
might meet after it reports to the Board to study the issues on
a long term basis. He stated that he feels the committee
should look at ways to reduce taxes for the elderly and small
business owners. He also asked the committee to examine the
ratio of taxes paid by businesses versus residents.
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Mr. McHale requested that the committee address reduction of
the BPOL tax as well as taxes for the elderly, while still
maintaining the same high level of service to all County
residents. He stated that he feels it will be necessary for
the committee to provide both short and long term
recommendations.
Mr. Barber expressed concerns relative to the impact that a
reduction in the tax rate would have on funding for schools.
He stated that he feels the BPOL tax is unfair to small
businesses. He discussed areas in which the local governments
are constrained by the State, but noted that there is a State
and local tax commission studying these areas. He further
stated that he feels the committee should address reduction of
taxes for the elderly as well as BPOL issues.
Mrs. Humphrey discussed her involvement with the Virginia
Association of Counties relative to these issues and suggested
that the committee make a recommendation to the General
Assembly to return more income taxes to the localities. She
suggested that the committee review proposals for "user fees"
on services such as ambulatory service, trash pick-up and
recycling. She asked the committee to consider whether these
services could be turned over to private companies in an effort
to save taxpayer dollars. She further requested that the
committee address elimination of the BPOL tax and reduction of
taxes for the elderly as well as taxes on agricultural
property.
Mr. Warren requested that the committee study consolidation of
services that are currently being provided by the County and
the School system; "impact fees" as an alternative to the cash
proffer system; and elimination of the BPOL tax.
Discussion ensued relative to the issues that the committee has
been requested to address.
Mr. Genovese stated that one solution might be the County
getting an additional one-half percent of sales tax from the
State to provide assistance with the requested issues.
Discussion ensued relative to the impact of implementing an
internet sales tax.
Mrs. Humphrey recommended that the committee review proposed
legislation to return five percent of State income taxes to the
localities based on the residency of taxpayers.
Following brief discussion, Mr. Miller suggested that the Board
and the Tax Structure Committee meet again before delivering
their recommendations.
On motion of Mr. Warren, seconded by Mr. McHale, the Board
adjourned at 8:57 a.m. until May 24, 2000 at 3:30 p.m.
Chairman
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