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
Email: dtelvock@freelancestar.com