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BPOL Taxes
Among Gov. George Allen’s proposals is the elimination over a five-year period of the Business and Professional Occupations License. In all of the state’s cities, many of its towns $nd about half its counties this tax is levied on businesses.
The governor proposes to use funds from general revenues to make up the localities for monies lost by repealing the tax. As originally proposed those state funds would run out after five years. The Republican caucus has proposed that this contribution to localities that are forced to give up the tax be made permanent.
The license part of this tax is fairly straightforward, and that is all that is levied in several towns. Every business pays to have a license to do business in the locality . The license fee can range from S10 to S50. However, many localities also tax the business’s gross receipts. It is this aspect that has come under fire, because the business pays w hether it is a profitable business or not.
Rappahannock has chosen not to have a BPOL tax at all. In proposing to use general fund revenues to make up lost rev enues to localities which will be no longer collect the tax. Gov. Allen is, among other things, proposing to take money from Rappahannock County, which does not have the tax, and send it to Warrenton, which does.
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