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Spotsy supervisors may trade revenue to county for higher-paying jobs
CORRECTION:
Spotsylvania County has tech zones for Rt. 1, Rts. 2 and 17, and State Route 3. A story named an area not in a tech zone. The county has special service districts for Lees Hill West and East, Massaponax and Harrison Crossing. A fifth one was incorrect in the story. Tech zones do affect Tax Incremental Financing districts and Community Development Authorities because the BPOL and Machinery and Tools taxes are rebated in tech zones.
BY DAN TELVOCK
The Spotsylvania County Board of Supervisors wants to lure new business by expanding technology zones that offer tax rebates, especially near the new Spotsylvania Regional Medical Center.
But expanding the tech zones means the county would lose new tax revenue five years in a row for each new business, while gaining higher-paying jobs.
Businesses that open in these zones may qualify for five years of rebates on the Business, Professional and Occupational License tax and Machinery and Tools tax. In fiscal year 2011, the county anticipates more than $5 million from both taxes.
The technology zones require the business be in biotechnology, biomedical research, defense, electronics, energy and environmental companies, pharmaceutical makers, homeland security and computer hardware and software creation.
There are technology zones in the Courthouse area, State Route 3 and Routes 2 and 17.
Economic Development Director Russell Seymour said supervisors approved the three technology zones in February 2009. He did not say how much in rebates the county has paid out or how many businesses are taking advantage of the program.
Supervisor Hap Connors said he wanted a technology zone on the east side of Interstate 95 by the new Spotsylvania Regional Medical Center. "I really want to do everything we can to facilitate those needs at the hospital. We have been told by the CEO that it would help them tremendously if we could create these incentives captured in a technology zone.." Supervisor Emmitt Marshall said he was concerned that expanding the technology zones would take away much-needed tax revenue. County staff did not prepare any information that showed how much money the county could possibly lose by expanding the technology zones. Not only would the county lose tax revenue by expanding the technology zones, it could lose transportation dollars, too. The county has Special Service Districts for Lee Hill East and West, Massaponax, Harrison Crossing and Cosner's East. Businesses in these districts pay 10 percent of all taxes to the county's transportation fund for road work in the districts. If a technology zone is moved into any of these service districts, then all new businesses would not have to pay the 10 percent for BPOL or the Tools and Machinery tax because the county rebates those taxes. That means those new businesses would not be paying into the transportation fund although they are in the district. "I think we should look at having the entire primary settlement district being a technology zone," said Supervisor Jerry Logan. His idea would open thousands of acres that the county's growth guide targets for commercial and housing growth. Supervisor Gary Skinner said the technology zones are incentives for these businesses to come to the county, and he supports expanding them. Supervisors voted 7-0 to have a public hearing in June on making the entire primary settlement district a technology zone.
Dan Telvock: 540/374-5438
don't be offended..but your post reflects wishful thinking not reality.
First, receiving more tax revenue from business has NEVER resulted in a tax reduction for citizens. Just more lucre for the pols to spend.
Second, most locals who commute north work for the feds, and I doubt they would be happy to work hard at a local business for half as much money or less than they are making now.
You build businesses and homes and people move in increasing the demand on services and the circle jerk continues
2/3 of Spotsylvania's work force commutes north everyday, and would rather work near home. Add in the 6.5% unemployment and highest foreclosure rate in VA... we'd have to turn from being Spotsylvania into being Tysons Corner overnight to see the nightmare scenario you envision. We're just trying to find good jobs for people who actually live here. Having businesses to take the tax burden off citizens wouldn't be so bad either. There are FAR more people who need work to worry about more people coming here!
Bring in more industry which pays taxes and needs people and services, then more people move here to fill the jobs and they'll need more houses with more taxes and they'll need more roads and in no time you have wall to wall traffic and people from washington to Richmond. What a clever idea.
The County has made significant investments/concessions in the SRMC area over the past few years and significant development and growth occurred there. Congratulations and thanks are in order to the County efforts and success. However, patience should be exercised to let the County?s investments in the SRMC area pay off before offering even more incentives in those areas that have already grown significantly.
Adding a Technology Zone at the new Spotsylvania Regional Medical Center area is counter- intuitive as the Medical Center itself is an excellent catalyst for growth and a magnet for other medical and Medical-life science businesses. SRMC has already been a catalyst for growth as a great deal of Medical development has occurred in that area and Lee?s Hill area over the last three years. The County has made significant investments/concessions in the SRMC area over the past few years.
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