It asks the question, “Can

It asks the question, “Can the state really afford personal property tax relief?” And it provides several answers, among them:

“The state has collected less in revenue than it has spent for services in the 1990s. It has filled this gap by relying on lottery proceeds and onetime sources of revenue such as debt financing, the sale of assets, deferral of tax breaks and payments from Trigon’s (Blue Cross/Blue Shield) conversion to a stock company. It becomes harder every year to continue paying for the state’s current services.”

Thousands of the brochures have been sent to the associations’ members and are being made available to other organizations on request, Campbell said.

He admits that he has come under political fire for the late timing of the project, as well as for its thrust. But he insists that the associations are attacking the tax proposals, not the candidates.

“We are not attacking the candidate Gilmore. We are attacking a scheme to take the power of the local personal property tax out of local government officials’ hands. It’s a long-standing position.”

The associations also oppose Beyer’s proposal, because it too would use an extensive amount of state revenues.

“The fact is the General Assembly and the governor did offer tax relief in 1990. They passed an exemption of non-prescription drugs from the sales tax.

“But the General Assembly has not yet found the $16 million to fund that tax relief, so it has never been implemented. Where are they going to find $1 billion to replace the personal property tax?”

Constitutional

question

Legal opinion is divided over whether Gilmore’s proposal would require an amendment to the state constitution.

Since 1928, that document has given localities the power to tax both personal property and real estate.

“He keeps saying he’s going to do away with the personal property tax on cars,” said C. Flippo Hicks, legal counsel for the Virginia Association of Counties. “If he’s going to do away with it, I