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January 24, 1995
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City
<br />of Portsmouth, Virginia, that the City Manager be, and he is
<br />hereby authorized to enter into a Compact for the Regional
<br />Enforcement of Local Motor Vehicle License Requirements with
<br />any other city or county of the Commonwealth, as authorized by
<br />Section 46.2-752K, of the Code of Virginia, 1950, as amended."
<br />
<br />Ayes: Clemons, Griffin, Hawks, Martin, Pitts, Robinett, Webb
<br />Nays: None
<br />
<br />95-42 - Letter from the City Manager recommending adoption of
<br />resolution opposing the elimination of the Business,
<br />Professional and Occupational License Taxes.
<br />
<br /> "As you know, there has been a proposal by the Governor to
<br />phase out the ability of local governments to impose Business,
<br />Professional and Occupational License taxes. The proposal has
<br />been supported by some members of the business community on the
<br />grounds that the taxes are inequitable. However, this would be
<br />crippling to Portsmouth's ability to provide services.
<br />
<br /> In the current fiscal year, Portsmouth is budgeted to
<br />receive $4,350,000. In recent years, the BPOL tax has been the
<br />third or fourth largest locally generated tax, along with the
<br />real estate tax, personal property tax, and the locally imposed
<br />I cent sales and use tax. More than 6% of General Fund's
<br />direct expenditures are supported by the BPOL tax.
<br />
<br /> Since the BPOL tax is such a significant source of funds,
<br />there are few practical means to make up such a loss. One way
<br />to do so would be to increase the real estate tax rate.
<br />However, to make up for the loss of BPOL revenue would require
<br />an increase of 17 cents in the tax rate, from $1.32 to $1.49
<br />per $100 in valuation.
<br />
<br /> Obviously, if we were deprived of this source of revenue,
<br />we would try to reduce expenditures as well as generate other
<br />funds. However, with full time employment by the City being
<br />reduced by more than 300 positions over the last five years, it
<br />would be very difficult to cut expenditures significantly
<br />without creating drastic cuts in the level of services
<br />currently enjoyed by our citizens.
<br />
<br /> I recommend that you adopt a resolution opposing the
<br />elimination of this important tax which allows local
<br />governments to provide the services demanded by our citizens."
<br />
<br /> Motion by Mr. Hawks,
<br />the following resolution,
<br />vote:
<br />
<br />and seconded by Mr. Martin, to adopt
<br />and was adopted by the following
<br />
<br /> "A RESOLUTION CALLING UPON THE VIRGINIA GENERAL ASSEMBLY
<br />TO 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 />goverrnnent 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'a~nount would pay for six percent (6%) of the General Fund
<br />Direct Expenditures in the current fiscal year; and
<br />
<br />
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