The Stafford Board of Supervisors last night approved a public hearing to consider abolishing the Business, Professional and Occupational License tax.
They also directed county staff to immediately cease all actions regarding the collection of the BPOL tax, which took effect Jan. 1.
The resolution passed 5-2, with supervisors Bob Woodson and Harry Crisp voting against. The public hearing is scheduled for Feb. 2.
After hearing from a number of local economic experts during last night's special meeting, the Board resolved to redouble its efforts when it comes to attracting and retaining businesses. Part of that effort could now include removing the BPOL fee.
"Not having the BPOL tax is the single reason we lead the state in most major economic indicators," Supervisor Paul Milde said.
The presentations made to the board painted a fairly rosy picture for Stafford's future, considering the deep recession that has affected the national economy.
Most speakers, including Chris Chmura of Chmura Economics and Analytics and William Beale of Union Bankshares Corp., pointed to lower average wages and a well-educated work force as positive characteristics that make Stafford attractive to businesses.
Economic Development Authority Chairman Don Newlin mentioned Northrop Grumman, a company that recently announced it will move its headquarters from California to the Washington, D.C., area. Newlin said Northrop Grumman is looking at Stafford, thanks to investments made in the past.
"They wouldn't be looking here if we didn't have the hospital and the airport," he said.
Newlin and Beale encouraged Stafford to create a business-friendly climate for new and existing businesses by reducing taxes and streamlining permitting processes--something that many of the recently elected members of the board promised to do during their campaigns.
The key to bringing those jobs into the county, Chmura said, is "being a county where growth is important."
Supervisor Cord Sterling said that eliminating the BPOL tax will allow Stafford to send that message, while generating local jobs that could end long commutes for many residents.
If BPOL is repealed, the county will again collect a merchants' capital tax.
"BPOL is an inhibition, in a sense," Crisp said. "But when you look at the numbers for the county, and the needs we have, we cannot place even more burden on average homeowners and not ask businesses to do so as well."
In a separate move, Milde asked County Administrator Anthony Romanello to determine the cost of conducting an economic analysis on reducing or eliminating the county's boat tax. Milde believes it will help Stafford marina owners. Sterling then asked Romanello to do the same cost analysis for every county tax. Both motions passed 4-3, with Crisp, Gary Snellings and Woodson voting against.
"I'm not sure that reducing the boat tax is going to attract business," Snellings said. "I don't think it's in the economic interest of the county to do it."
Supervisors also adopted a 10-point economic development action plan and asked staff to develop details. That resolution passed 7-0.
Jonas Beals: 540/368-5036
Email: jbeals@freelancestar.com