Board repeals BPOL tax

STAFFORD — The Stafford County Board of Supervisors voted to repeal the Business, Professional and Occupational License ordinance on Tuesday night.

Supervisors Harry Crisp, D-George Washington, and Bob Woodson, D-Griffis Widewater, cast the dissenting votes.

“Stafford has claimed for years that it is business friendly,” said Chairman of the Stafford County Board of Supervisors Mark Dudenhefer, R-Garrisonville, in a press release. “We can now back that claim up with the repeal of BPOL and our recent re-commitment to economic development with our 10-point Economic Development Action Plan."

Prior to the vote, the board held a public hearing on the issue.

Manuel Mathew Sr. of Stafford, told the board that "now, because some business owners are upset," the rest of the county essentially would be affected if the BPOL tax is done away with.

"I believe everybody should pay his or her fair share," he said. "Our county is struggling... You need to take advantage of every revenue source available and that includes BPOL."

But business owners attended the board meeting too, many urging supervisors to repeal the BPOL tax.

Jo Knight, a Stafford realtor, said: "We're going to gain far more by having no BPOL."

Stafford resident Yvonne Nageotte told the board: "If BPOL is not repealed you will be forced to waive it or not attract new businesses," she told the board.

Russ Moulton, of Stafford, said that he is in favor of repealing BPOL and added: "The key to future revenue for Stafford is business growth."

But surrounding localities to Stafford such as Prince William, Spotsylvania and Fredericksburg all have a BPOL tax.

One man who noted that he lives within a modest means, shared details of his finances with the board to make his point. He noted that the board should do the same as he has done -- live and work within its means.

Bob Hagan, who recently stepped down as the president of the Fredericksburg Regional Chamber of Commerce, said that most controversial issues are controversial because there are good points to both sides.

BPOL is a gross-receipts tax that bases its taxes on how much money each business brings in. Now that BPOL is set to be repealed, another tax — the merchant's capital tax — will be reinstated.

BPOL is projected to have generated more than $3.7 million annually for Stafford, according to the county.

The estimated revenue from the merchant's capital is $961,000 for Fiscal Year 2010, according to the county, which also reported that the repeal of BPOL will save it from start-up costs of about $30,000 in postage, fuel, supplies and software upgrades.

The board of supervisors approved an ordinance, voting to apply the BPOL tax in July 2008. It was to go into effect Jan. 1, 2010. However, funds haven't been collected, according to the county. Instead, a new board voted last month to suspend the tax.

Late last month Del. Mark Cole, R-Spotsylvania, moved toward a first step in phasing out BPOL by proposing a bill to freeze the tax in Virginia. Areas with BPOL would keep it, but couldn't increase their rates. Areas without BPOL would find the BPOL tax rate "frozen," and they would not be able to institute BPOL at that time.

During discussion before the vote, Stafford Supervisor Harry Crisp, D-George Washington, said that BPOL is an "emotional, hot-button issue." None of the taxes take into account whether a profit is made or not, he added, noting that its a quality of life issue that affects every citizen.

The issue needs to be addressed in relation to adequate funding and other points, Crisp said. It's a matter of fiscal responsibility -- bottom line, he said.

Stafford Supervisor Paul Milde, R-Aquia, referring to the Republican majority, noted the BPOL repeal date was one that was a long time in coming.

"This is our day," he said.

Crisp said that BPOL is one of the most flexible taxes there is and it's one that can be adjusted.

"We can repeal it but we can also amend it," said Crisp, who attempted a substitute motion that failed.

Stafford Supervisor Gary Snellings, R-Hartwood, said that some have said he's flip-flopped on the BPOL matter.

"They're right," he said, explaining his position related to BPOL being based on gross receipts. Snellings said he firmly believes that it's an unfair tax.

But former Stafford Supervisors George Schwartz and Joe Brito had other concerns.

The former supervisors and several other speakers worry about the economic impact that the BPOL tax repeal would have on taxpayers and county services such as fire-rescue, the sheriff's office and schools.

Although an earlier accounting error left a several million dollar surplus in the county's pocket, to which it can draw from for funding purposes and needs, they say they're alarmed.

Schwartz said the matter will be "repealed onto the backs" of those services. Woodson spoke of similar concerns.

And earlier that day, Stafford County Schools Superintendent David Sawyer spoke of a $26 million shortfall and spoke of building a new school.

The board, Schwartz said before the vote, will "beat the clock" and "BPOL will be dead forever in Stafford County." (A short time later, the vote went through.)

But, he asked: "Who will speak for the taxpayers?"

Tracy Bell is managing editor of the Stafford County Sun. Reach her at tbell@staffordcountysun.com.