Board lowers business taxes
By Greg Pearson STAFF WRITER

The Chesterfield Board of Supervisors last week reduced the tax rate from 33 cents per $100 of gross receipts to 20 cents for businesses that provide personal and business services, and for those who are commission merchants and amusement machine operators. The repair service category was also cut from 27 cents to 20 cents.

The Retail Merchants Association (RMA) argued that the tax rate for retailers of 20 cents should also be lowered, instead of remaining the same. Board Chairman Dickie King agreed and pressed Budget and Management Director Allan Carmody for a reduction. Carmody promised a review in next year's proposed budget.

But the board did not approve diverting excess revenue from the Business and Profession Occupational Tax (BPOL) to be set aside for road improvements. That was the recommendation from County Administrator Lane Ramsey for BPOL taxes over the cap of $15.6 million annually. State funding for new roads has been significantly reduced in recent years, and the county has been looking for new ways to pay for road improvements. Transportation Director John McCracken has said Chesterfield needs $1 billion to fund its current road needs.

"BPOL is an unfair tax levied against businesses," charged King.

The county says a cap on business taxes has saved area businesses an estimated $43 million since it was first enacted in 1997. The RMA said 70 percent of Chesterfield businesses now only pay a $10 annual license fee.

The Chesterfield Business Council (CBC) argued for continuing the BPOL cap at last week's public hearing before the board. The CBC recommended a study committee "to analyze the implication" of doing away with the cap and wants any decision delayed until after a Transportation Summit, which could be held next month.