2012.02.14
Va. House rejects bill to restrict local taxing power
RICHMOND — Yielding to protests from localities, the Virginia House of Delegates today defeated a Virginia Beach lawmaker’s effort to restrict local taxing power.
Del. Bob Purkey’s bill, HB512, would have prohibited localities from imposing the machinery and tools tax on new manufacturing equipment for the first three years after it is put into service.
The tax brought more than $200 million into local coffers in 2010.
Purkey, a Republican, portrayed the bill as a job-creating measure, saying the tax is a disincentive to businesses looking to locate and expand in Virginia.
The measure was rejected on a bipartisan 65-35 vote after several delegates objected that localities depend on the tax to fund essential services.
“This is a ‘big brother knows best’ bill,” said Del. James Edmunds, R-Halifax County, arguing that localities already have the power to waive the tax if they choose.
– Bill Sizemore | The (Norfolk) Virginian-Pilot
