COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

BPOL Tax Rate Ordinance

 

SUBJECT/PROPOSAL/REQUEST:

Public hearing to consider proposed ordinance to amend County Code Chapter 8, Licenses, Article VI, Schedule of Taxes, Division 4, Personal, Professional, Business or Repair Service Business, Occupations and Professions, Section 8-617, Retailers or retail merchants, to reduce the license tax for direct retail sales.

 

STAFF CONTACT(S):

Tucker, White, Davis, Herrick, Wiggans, Walters

 

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

May 3, 2006

 

ACTION:      X                     INFORMATION:    

 

CONSENT AGENDA:

  ACTION:                           INFORMATION:   

 

 

ATTACHMENTS:    Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

At its March 1, 2006 meeting, the Board discussed a request that it approve a reduced Business, Professional, and Occupational License (BPOL) tax rate for direct retailers, and asked staff to prepare an analysis of the issue and a draft ordinance.  The Board reviewed this information at its April 5, 2006 meeting, and requested that a public hearing be set for May 3, 2006.

 

 

STRATEGIC PLAN:

4.0 Provide effective and efficient County services to the public in a courteous and equitable manner.

 

 

DISCUSSION:

The draft ordinance is attached as Attachment A, and the executive summary from the April 5, 2006 Board meeting, which includes the analysis of implementing this draft ordinance, is attached as Attachment B.

 

 

BUDGET IMPACT:

Annual sales for direct retailers in the County, including actual amounts for the known retailers and an estimate for unknown retailers, could range from $140 to $200 million. The increasing trend toward this type of direct sales could increase this estimate to as much as $300 million. The proposed Ordinance would reduce the current rate of $0.20 per $100 of sales to $0.10 per $100 of sales. Using the $200 million direct retail sales estimate, the annual impact on County revenue for each one cent reduction in the BPOL tax rate on these sales would be approximately $20,000. The proposed $0.10 reduction would decrease the tax revenue to the County from these direct retail sales from $400,000 to $200,000. 

 

 

RECOMMENDATIONS:

After a public hearing, if the Board wishes to reduce the BPOL tax on direct retail sales, staff recommends that the Board adopt the attached ordinance (Attachment A).

 

 

ATTACHMENTS

A - Draft BPOL Ordinance for Direct Retail Sales

B April 5, 2006 Executive Summary

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