County pitches meals tax to legislators
By Tom Lappas, Citizen Editor 11/15/12
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.”
Citizen Staff Reports 03/23/2017 Business
ChamberRVA is seeking nominees for the annual IMPACT Award, which honors the ways in which businesses are making an impact in the RVA Region economy and community and on their employees.
Nominees must be a for-profit, privately-held business located within ChamberRVA's regional footprint: the counties of Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent and Powhatan; the City of Richmond; and the Town of Ashland. > Read more.
Cushman & Wakefield | Thalhimer announces the sale of the former Friendly’s restaurant property located at 5220 Brook Road in Henrico County. Brook Road V, LLC purchased the 3,521-square-foot former restaurant property situated on 0.92 acres from O Ice, LLC for $775,000 as an investment. Bruce Bigger of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the seller. > Read more.
Citizen Staff Reports 03/21/2017 Transportation
Work to repair a leaking water main or valve will require lane closures beginning at 8:30 a.m. Wednesday, March 22 near Gayton Road and John Rolfe Parkway.
Westbound Gayton’s left turning lane and left through lane will be closed. Westbound traffic will be shifted to the right through lane. Eastbound Gayton’s left through lane will be closed at John Rolfe. Eastbound traffic will be shifted to the right through lane. > Read more.
Citizen Staff Reports 03/21/2017 Health
HCA Virginia's Henrico Doctors' Hospitals recently was named one of the nation’s 100 top hospitals by Truven Health Analytics, a provider of information and solutions that support healthcare cost and quality improvement.
Henrico Doctors’ Hospitals consists of three community hospitals – Henrico (Forest), Parham, and Retreat Doctors’ Hospitals – and two freestanding emergency departments, West Creek Emergency Center and Hanover Emergency Center. Henrico Doctors’ Hospitals specializes in heart and stroke care, women’s health, oncology, orthopedics, urology, and behavioral health. > Read more.
Citizen Staff Reports 03/21/2017 Government
Henrico County Public Library is planning community meetings March 28-29 and April 1 to receive input from county residents on the design of a new Fairfield Area Library. Meetings will be held at the Fairfield Area Library, 1001 N. Laburnum Ave., and at the Eastern Henrico Recreation Center, 1440 N. Laburnum Ave.
Architects from BCWH, Inc. will join library staff for the meetings, which will feature discussions and seek ideas on spaces and services for specific age groups as well as designs for the entire facility. > Read more.
St. Joseph's Villa’s Flagler Housing & Homeless Services was one of three entities to earn the National Alliance to End Homelessness' Champion of Change Award. The awards were presented Nov. 17 during a ceremony at the Newseum in Washington, D.C.
NAEH annually recognizes proven programs and significant achievements in ending child and family homelessness.
Flagler completed its transition from an on-campus shelter to the community-based model of rapid rehousing in 2013, and it was one of the nation's first rapid re-housing service providers to be certified by NAEH. > Read more.
Richmond International Raceway's 13th annual Community Christmas tree lighting has been rescheduled from Dec. 6 to Monday, Dec. 12, at 6:30 p.m., due to inclement weather expected on the original date.
Entertainment Dec. 12 will be provided by the Laburnum Elementary School choir and the Henrico High School Mighty Marching Warriors band. Tree decorations crafted by students from Laburnum Elementary School and L. Douglas Wilder Middle School will be on display. Hot chocolate and cookies will be supplied by the Henrico High School football boosters. > Read more.
CAT Theatre and When There’s A Will director Ann Davis recently announced the cast for the dark comedy which will be performed May 26 through June 3.
The play centers around a family gathering commanded by the matriarch, Dolores, to address their unhappiness with Grandmother’s hold on the clan’s inheritance and her unreasonable demands on her family.
Pat Walker will play the part of Dolores Whitmore, with Graham and Florine Whitmore played by Brent Deekens and Brandy Samberg, respectively. > Read more.
- More News
Mar. 16, 2017Click here to read the print edition.
- More Entertainment
- More Obituaries
- More Community
- More Opinions
- More Sports
CalendarTrinity Lutheran Church, 2315 N. Parham Rd., will present Martha Prewitt, mezzo-soprano, at 7 p.m. Enjoy romantic songs by Scandinavian’s most celebrated composers, including Edvard Grieg, Jean Sibelius and Carl Nielson. Admission is free. For details, call 270-4626 or visit http://www.trinityrichmond.net. Full text