County pitches meals tax to legislators

Henrico County officials made their pitch for a 4-percent meals tax to the county’s General Assembly delegation last week, telling the group that the proposed tax was their last resort to create revenue and close an $18-million shortfall in next year’s budget before raising real estate taxes, cutting services or laying off employees.

Henrico lacks the authority to implement such a tax on its own, so officials want the General Assembly to grant it that authority, with the provision that the county’s Board of Supervisors must unanimously support it.

A total of 204 other Virginia localities already have meals taxes, including 45 other counties – four of which were specifically granted the right to implement the tax by the General Assembly.

“We have evaluated all the alternatives, and this has the very least consequence,” County Manager Virgil Hazelett told the nine delegates and senators who attended. “People will object – some people – but they will not object to police officers, to teachers [and other county services].”

Hazelett and Finance Director Brandon Hinton presented an impassioned argument to the Assembly delegation, recounting how in just their past three fiscal years, they have trimmed nearly $97 million from their total budget and eliminated or frozen 721 vacant government and school positions in an attempt to compensate for $84 million in lost revenue from declining real estate taxes and state funding.

The county also has refunded $317 million in debt through bond refinancing since 2009 and has weathered the storm without cutting services, laying off any employees or raising taxes, Hazelett said.

But a significant jump in the amount localities must pay into the Virginia Retirement System on behalf of employees looms large on the horizon, as do road maintenance and construction needs in Henrico that total $418 million but have no current funding source.

County officials have pointed to the fact that Henrico is the only state locality that maintains its own secondary road system but lacks the authority to collect a meals tax. (Arlington, the only other county that maintains its own roads, was granted the right to implement such a tax in 1990.) Locally, Richmond imposes a 6 percent meals tax, Ashland a 5 percent tax and Louisa County a 4 percent tax.

Henrico officials estimate that about 40 percent of all prepared meals purchased in the county are bought by non-Henrico residents, which would lessen the impact of such a tax on county residents. And unlike a real estate tax increase, residents would be free to avoid a meals tax by not dining out or by limiting their dining excursions, Board chairman Dick Glover said.

“A meals tax is not something we’d impose on them that they can’t dodge if they want to,” Glover said.

A 4-percent meals tax would generate between $18 million and $20 million annually, Hazelett estimated. He and board members told the Assembly delegation that they likely would not designate that money for any one particular use but rather apply it as needed.

Delegate Jimmie Massie wondered aloud whether it would be difficult to convince other members of the General Assembly to support a tax increase for just one locality.

Deputy County Manager John Vithoulkas, who will assume Hazelett’s position in mid-January, suggested that the delegation could take another route by supporting the passage of language that would authorize all counties that maintain their own road systems to have the same taxing authorities as cities. (Cities inherently have the right to implement meals, cigarette and admissions taxes.)

Henrico could enact a meals tax if a majority of voters supported the idea in a referendum, but they seem leery of trying that route again after voters defeated it in 2005 by 153 votes.

Varina District Supervisor Tyrone Nelson told the delegation that without the Assembly’s approval of the issue, Henrico’s would not survive unscathed.

“If you can’t support a meals tax, then our issues are not going to go away,” he said. “This is a last resort. A tax is going to come up or we will have to cut services or lay people off. We don’t do that in Henrico, and we don’t want to do this, but this is where we are. We need your help.”
Bail Bonds Chesterfield VA

Henrico Public Library wins Virginia Breast Cancer Foundation grant


The Henrico County Public Library system recently won the Virginia Breast Cancer Foundation's Library Grant Award, which provides funding, materials and programming from VBCF to help educate citizens about breast cancer.

The grant is given to select libraries in Virginia that apply and is intended to further the VBCF mission to educate the public about breast health and breast cancer. > Read more.

Pet Valu to open in Glen Allen Aug. 26


Pet supplies and accessories retailer Pet Valu will open at 5304 Wyndham Forest Drive in Glen Allen Saturday, Aug. 26.

The store will offer free samples, goody bags, refreshments, raffles and prizes and kid- and pet-friendly entertainment during its first day of business from 9 a.m. to 9 p.m. > Read more.

State issues warning about purebred puppy scam


Virginia Attorney General Mark Herring is warning Virginia consumers about an active fraud involving purebred puppies.

Herring's Consumer Protection Section recently has received a number of reports of consumers entering into agreements to buy a pet with a company they found online, later to learn the website and the company are a scam – and that no such puppy ever existed. > Read more.

Kaine, McEachin to host Service Academy Day


Congressman A. Donald McEachin (VA-04) and Senator Tim Kaine (D-VA) will co-host their Service Academy Day to educate high school students about the service academy nominations process, an honor awarded by members of Congress for students interested in attending a service academy after high school.

The event will take place Saturday, Sept. 16, from 10 a.m. to noon, at Matoaca High School, 17700 Longhouse Lane, Chesterfield 23838. It will provide an opportunity for high school students and parents to learn about the nation’s military academies, a career in military service and the nominations process. > Read more.

Red Cross, Sport Clips offer free haircuts to blood donors


The American Red Cross and Sport Clips are partnering to provide free haircuts to anyone who donates blood or platelets to the Red Cross during September.

Blood donors of all blood types, especially type O negative and O positive, are urgently needed to replenish the blood supply following a critical summer blood shortage. > Read more.

Henrico Business Bulletin Board

August 2017
S M T W T F S
·
·
27
·
·

Calendar page

Classifieds

Place an Ad | More Classifieds

Calendar

Highland Springs United Methodist Church will hold its first Highland Springs Family Fun Fest from 11 a.m. to 3 p.m. There will be games and prizes for children of all ages, a bounce house, basketball contests, cake walks and more. Live music will be performed by Bobby & Friends. Meet the Henrico Police and Fire units. Lunch begins at 12 p.m. The church is located at 22 N. Holly Ave. in Highland Springs. Full text

Your weather just got better.

Henricopedia

Henrico's Top Teachers

The Plate