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Luke pointed out that the proposed utility amendment would raise that tax to the limit allowed by the state. "So next year, it’s all on property tax unless the General Assembly allows other revenue sources,” he warned.
The increase in utility tax, said Tom Faust, will hit people who are only using $15 worth of electricity. He asked why the tax couldn’t be applied to consumers who use $50 or $75 worth of electricity instead of to the poor.
Luke explained that the Code empowered localities to tax only the basic rate and not the total amount of electricity used. If the same percentage was applied to the first $50 of a customer’s bill instead of the first $15, the tax wouldn’t generate sufficient revenue, according to accountant Walter Cox.
Francis Updike, representing Northern Piedmont Electrical Cooperative serving 419 members in Rappahannock, also protested against the utility tax amendment. He reported that 80 Piedmont customers would be taxed twice because of meters in barns and other outbuildings. Updike noted that large users of electricity will pay a smaller percentage on their total bill in tax. "You'll be hitting hardest those who can afford it the least,” he told the Supervisors. He also warned that the Cooperative would have to begin charging localities for the extra administrative work entailed by the adoption of a utility tax.
Chapter Ten Episcopal minister Jennings Hobson, speaking for the Chapter Ten Mental
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