Aircraft owners in Stafford County can breathe a little easier today. With a 5-2 vote last night, the Board of Supervisors agreed to advertise a lower personal property tax rate on aircraft: a dime per $100 of assessed value versus the current rate of $3.
The proposed new aircraft rate comes on the heels of a budget proposal that contains the first personal property tax rate increase on vehicles in 19 years.
The rates have not yet been adopted, and will be discussed at a public hearing on April 7. The county administrator has said that 95 percent of citizens would see their bill go up by less than $50.
In 2008, personal property taxes were levied on 46 aircraft in the county, resulting in $84,369.30 of revenue. Under the proposed rate, those same planes would have generated approximately $2,800.
Supervisors Joe Brito and Bob Woodson voted against the cut.
According to representatives from the Stafford Regional Airport Authority, the rate cut is a critical step that could save the airport from financial ruin.
"The tax rate is 120 times that of the Manassas Airport," SRAA member Hank Scharpenberg told the board. "That rate is the greatest impediment to the solvency and future potential of our airport. We are not committing ourselves to what could be a viable asset to the county."
Scharpenberg and SRAA Chairman Walt George argued that it is impossible to draw recreational and commercial pilots to Stafford when the nearby Manassas airport has a tax rate of one penny. The results, they say, are stunted revenues from hangar rentals and fuel taxes. For Stafford County, unmet revenue potential at the airport could be particularly costly. Because federal funds were used to construct a portion of the airport, the county accepted a moral obligation to support the airport financially. Currently, the airport is facing a $235,000 shortfall for fiscal year 2010.
"I don't like coming to you hat in hand," Scharpenberg told the board. "We want to attract corporate clients who will bring jobs. If there is not a competitive business environment, I see no other option than to subsidize the airport."
Supervisors have resisted slashing the aircraft tax rate in the past, but with such a sizable obligation looming, it seemed they were willing to follow the advice of the SRAA to see if it might increase traffic at the airport and generate enough revenue to overcome the shortfall.
"We are at a point where we make it [the airport] viable, or it will be a significant burden to the county," Supervisor Harry Crisp said before proposing the 10-cent tax rate.
SRAA representatives approved of the move. In their view, it will be a key selling point for corporate clients who could bring jobs to the area. "Our underlying concern is that it may take two to three years to reinvigorate business interest in the airport," George said. "But I feel good about the rate. It is a positive step in the right direction."
Supervisor Bob Woodson was unhappy with the entire situation. He believes the airport was a poor investment for Stafford residents, especially in light of the recent developments.
"This is the biggest boondoggle I've ever seen," he said, "but we're stuck with it."
In other action, supervisors continued their discussion of tax rates later in the meeting, but shifted their focus to the real estate rate and how it affects the county's Fire and Rescue Department. Board Chairman George Schwartz proposed a one-third of a cent increase to the rate that would be dedicated to fire and rescue services.
"It would provide enough revenue to staff one additional ambulance 24/7," Schwartz said.
His proposal included a new fire and rescue district that would encompass the entire county. Taxes collected in the district would
Jonas Beals: 540/368-5036
Email: jbeals@freelancestar.com