2012.02.13
Va. House advances bill to restrict local taxing power
RICHMOND — A Virginia Beach lawmaker’s effort to restrict localities’ taxing power won preliminary approval in the House of Delegates today.
Del. Bob Purkey’s bill, HB512, provides that the local machinery and tools tax, imposed on manufacturing equipment, could not be levied on new equipment for the first three years it is in service.
Purkey, a Republican, characterized the bill as a job-creating measure. The tax “is a major impediment to our ability to attract business,” he told the House.
Many localities oppose the bill.
Del. Annie B. Crockett-Stark, R-Wythe County, said localities in her district depend on the tax to pay for essential services. If it is restricted, they would have to make up the resulting revenue shortfall by raising real estate taxes, she said.
Virginia localities collected more than $200 million in machinery and tools taxes in 2010.
A competing measure, SB549, sponsored by Sen. Frank Wagner, R-Virginia Beach, would retain the tax and establish a state grant program to offset the first two years’ taxes paid on new equipment.
If both measures are passed, the differences would have to be worked out by a House-Senate conference committee.
– Bill Sizemore | The (Norfolk) Virginian-Pilot
Same old Republican game here. First, let’s pretend to balance the state’s budget by shifting more of the burden to the localities by mandating spending in certain areas and shifting some previously state funded items onto the localities. Then lets score some political points by reducing the localities ability to pay for the shifted burden by limiting their taxing authority while claiming “we cut your taxes”.
The non-logic and stupidity of this House of Delegates knows no bounds.
This may be the worst, most radical House of Delegates in the history of Va.
Comment by dave — February 13, 2012 @ 2:33 pm
ditto…..Hope the fine people of Virginia see what they done to themselves….Republican control will set us back like the Allen and Gilmore years.
Comment by William Blevins — February 14, 2012 @ 2:53 pm