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5 <br /> <br />A RESOLUTION CALLING UPON THE VIRGINIA GENERAL ASSEMBLY TO <br />OPPOSE PROPOSED ELIMINATION OF BUSINESS, PROFESSIONAL AND <br />OCCUPATION LICENSE TAXES. <br /> <br /> WHEREAS, Business, Professional and Occupation License <br />(BPOL) Taxes are of vital importance to a community, especially <br />a central city which is fiscally challenged, such as <br />Portsmouth; and <br /> <br /> WHEREAS, the Governor proposes that the ability of local <br />government to impose and collect BPOL Taxes be phased out; and <br /> <br /> WHEREAS, BPOL Taxes were projected to produce <br />$4,350,000.00 in revenue for the City's current annual budget, <br />which amount would pay for six percent (6%) of the General Fund <br />Direct Expenditures in the current fiscal year; and <br /> <br /> WHEREAS, other sources of taxation such as retail sales <br />tax have declined annually since 1989; and <br /> <br /> WHEREAS, experience demonstrates that elimination of <br />revenues from the State and Federal Governments shifts the <br />burden to the owners of real estate in the localities to pay <br />for unfunded State and Federal mandates and in the event that <br />BPOL Taxes were eliminated an increase in seventeen cents <br />($0.17) per one hundred dollars ($100.00) in valuation, on real <br />estate taxes would be required to maintain the City's current <br />level of services, reflecting an increased real estate tax <br />rate from one dollar thirty-two cents ($1.32) to one dollar <br />forty-nine cents ($1.49) per hundred dollars of valuation; and <br /> <br /> WHEREAS, local governments are ill-equipped financially to <br />make up shortfalls caused by declines in State and Federal <br />assistance and the elimination of sources of taxation. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED that the Council of the <br />City of Portsmouth, Virginia, opposes the elimination of <br />Business, Professional and Occupation License Taxes and <br />foresees the direct result of the proposed elimination as <br />forcing an increase in local real estate tax to maintain the <br />delivery of municipal services at the current level. The <br />Council further anticipates that such phase out will inevitably <br />create a greater hardship on fiscally stressed central cities <br />and their citizens. <br /> <br /> BE IT FURTHER RESOLVED that the Council of the City of <br />Portsmouth, Virginia, calls upon the Members of the Virginia <br />General Assembly to exert every effort to oppose the proposed <br />phase out and elimination of Business, Professional and <br /> <br /> <br />