An update from VML on the M&T tax from Virginia Municipal League:
HB 1636 (Purkey) classifies as capital taxable solely by the state (1) machinery and tools (M&T) that have not been in service for more than three years, (2) machinery and equipment used by farm wineries, and (3) idle machinery and tools. VML and VACo oppose the bill, which is expected to pass the House of Delegates. The Senate Finance Committee will consider the measure after crossover.
Talking points
- In FY 2009, counties, cities and towns collected more than $213.7 million in M&T revenues; these important local general funds support key services, including K-12 education and public safety.
- Manufacturers are only required to pay M&T on tangible property used directly in the manufacturing process. The rates are often times less than local rates on the general class of tangible personal property. Also, all other tangible personal property of manufacturers, other than motor vehicles, is exempt from personal property taxation. Idle machinery and tools are also exempt from M&T. Surrounding states do not provide these benefits.
- Manufacturers do not pay BPOL or merchant’s capital taxes.
- HB 1636 will actually lead to higher administrative costs for both localities and manufacturers. To enforce the measure localities will have to increase their audits, and manufacturers will have additional recordkeeping duties to document which machines are exempt.
Please contact your house representative and encourage them to support Manassas in this. If this tax is repealed, we’re running out of options to raise revenue at the local level, and our friends in the House of Delegates continue to impose more unfunded mandates on local government while reducing funding for police and schools….
February 2, 2011 at 11:26 pm
I twice attempted contacting Jackson last night and today on his website. Both times the web site showed an error message when I sought to convey my message.
My message had two components: First, to compliment him on his town hall meeting yesterday which enabled folks to participate by telephone in real time (kudos to whoever set that up). Second, to express my opposition to M&T tax repeal, as I have before, as being inconsistent with the best interests of Manassas.
Two last points. I mention my M&T opposition here and my related attempt to contact J, solely because his website wasn’t working correctly and I want my message to reach him. Second, I do wish to stress his gentlemanly response when I last contacted him regarding my opposition to repealing that tax. My sense is that I believe that repealing the tax will be far more damaing to Manassas than he does. We simply disagree on this issue.
February 3, 2011 at 7:43 am
Try any of these. I enjoyed the telephone town hall meeting, also.
Del. Jackson Miller
Phone: 703-244-6172
Fax: 703-530-1832
Email: Jackson@delegatemiller.com
Phone: 804-698-1050
Fax: 804-786-6310
Email: DelJMiller@house.virginia.gov
Legislative Assistant: Jessica Melander
February 3, 2011 at 12:53 pm
Rich, I am so sorry you could not get through to Delegate Miller’s office. You can email us at jackson@delegatemiller.com or call us at 703-244-6172 or here in Richmond at 804-698-1050. Also, thank you for the compliment on our town hall!
February 3, 2011 at 5:43 pm
I am on record as opposed to cutting/eliminating/changing in any manner the BPOL and M&T without a dedicated replacement funding stream.
Said it at the Town Hall Meeting last month on the Jan 3rd; and at Regional Meeting on Jan 6th.
Andy, my personal view is every member of VaCO & VML – right down to every individual member under the County/Municipal membership – needs to take the “kid’s gloves” off. There is far too much at stake, and far too much to loose at this time. And, based on the VEC Profiles, I see no impact where communities which have gained businesses in this economic times losing any outfit by having them in place.
February 3, 2011 at 8:06 pm
Is Jackson going to vote the way we want?