My Side of the Fence

The danger isn't going too far. It's that we don't go far enough.

Page 173 of 403

The General Assembly

So, I went to Richmond today for a VML event.  We, the gathered masses, received a briefing from the VML staff and then the Governor spoke.  Just one man’s opinion but the Governor’s speech didn’t resonate with me.  I understand that the governor is trying to do the strategy thing but I don’t think he quite understands that the whole package matters.  He talked about higher education – he wants to have thousands more kids in college so we can compete with those in emerging economies – but the fact of the matter is that the governor is still leading the assault on police, fire, rescue and education spending at the local level.

It’s a great thing to aspire to get more kids in college – we need more of it – but it is an intellectual fraud to talk about that whilst gutting local taxing authority.  Shame on you Governor.  We can’t cut our budgets an additional 10-20% – laying off teachers, police and public works folks and make our communities more successful.  Those that believe these cuts are possible – on top of the 15% we’ve already cut – with the expectation that we can still do better just aren’t living in the real world.

I did stop by Jackson Miller’s office and his LA Jessica was there (great to see you J) and she informed us that the session was going on and he wasn’t there.  So, the fam and I ran across the street to the Capitol and sat in the gallery to see the people at work.  They were debating the transportation bill (House side) while we were there.  We saw Jackson on the floor but didn’t get a chance to talk with him — the debate was grinding on.  I did send him a text asking him that he support us on the M&T tax and I hope he does.  The latest version of the bill essentially repeals the bill.  If that passes, property taxes will have to go up to offset the loss in revenue – it will be a historic transfer in tax burden to property owners both residential and commercial.

We were on our way up to see Senator Colgan when the fire alarm went off.  My back was killing me, we had to go down 6 flights of stairs and we decided to bag it and go on over the Shockoe for dinner….

M&T Update

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….

« Older posts Newer posts »