BPOL tax would have negative effect

Right now, businesses across our nation and our Commonwealth are facing very challenging times. Stafford County’s businesses are not immune from the uncertainties that are affecting companies large and small across America. Indeed, the pressures of difficult economic times are keenly felt by every Stafford business.

Although our own local businesses are dealing with the consequences of a less than robust economy every day, and even though they are facing difficult decisions to ensure they survive this downturn, the Stafford County Board of Supervisors is poised to further exacerbate the current situation.

Several members of the Stafford County Board of Supervisors are intent on imposing a new tax on our local businesses. This new tax is commonly referred to as “BPOL”, which stands for Business, Professional and Occupational License. Its innocuous sounding name disguises the reality that BPOL is among the most regressive of taxes. The tax would be assessed on the gross receipts of a business. So, whether they are profitable or not, businesses will have to pay this tax.

Although businesses would be forced to bear the immediate financial burden of this new tax, all of Stafford County will be feel its negative effects in the long run. Businesses provide jobs for our citizens and revenues for county government. Having more businesses locate, prosper, and expand in Stafford means more revenues for public safety, our schools, and other core government services.

If, however, we make it less attractive for businesses to choose Stafford, we endanger that progress and the inherent benefits of a vibrant business community. We are currently among the top five localities in Virginia for business growth, growth in professional jobs, employment, and other key indicators of economic vitality. This impressive record — unrivaled in our region — has been amassed by policies that make Stafford attractive to business. And, one of the key features making Stafford a desirable business address is the absence of a BPOL tax.

If you think this issue matters only to business, think again. Pressures on residential property tax bills — which are offset by the substantial taxes already paid by local businesses — could only become greater if Stafford were to become less business friendly. The growth in revenues from businesses helps to protect Stafford homeowners from having to bear an even larger financial burden. Without a healthy business climate and the subsequent growth in revenues, our homeowners’ property tax bills would be even higher. Ultimately, a BPOL tax will negatively affect businesses and homeowners alike.

Stafford’s pro-business policies have greatly benefited our community, creating jobs, improving our quality of life, and providing revenues for our county’s treasury. In fact, Stafford has seen a recent upward trend in taxes collected from business. In 2002, our businesses produced $38 million in revenues for Stafford. By the end of Fiscal Year 2008, projections show that figure increasing to a very impressive $62 million — a 63 percent increase in just six years.

Business growth is directly related to how accommodating we are to our local businesses. Enacting a BPOL tax will reverse Stafford’s longstanding policies to attract new businesses and encourage existing businesses to grow and expand here. We have set a standard for our region and achieved a much-sought status in Virginia. A policy change as significant as enacting a new tax threatens that status.

That makes the current debate over BPOL more than just a business concern. Its outcome will affect every Stafford resident. You should make sure your voice is heard. At 7 p.m. on Tuesday, July 1, immediately prior to a planned vote on enacting BPOL, the board of supervisors will be holding a public hearing on the issue.

Please consider adding your voice to the board’s deliberations. By doing so, you can do your part to help to keep Stafford a great place to do business.
Paul Milde is the Aquia District Stafford County supervisor.