Wednesday, May 30, 2012

Loudoun Metro Tax Advisory Committee Formed



Loudoun  Metro Tax Advisory Committee

Dulles Corridor Metrorail Project
Summary of Proposed Loudoun Taxes and Alternative Scenarios

Commercial & Industrial (C&I) Tax
Board-presented options: $0.10- $0.17 (8%-13.7% increase over $1.235 base rate)
Note: statutory limit of $0.125 until June 30, 2013, then increases to $0.25
Loudoun County Chamber of Commerce Resolution: $0.10/$100 (8% increase over $1.235 base rate)

Problems with this proposed tax:
-Most of the western 2/3 of Loudoun is zoned AR1 or AR2, which has been declared by the Zoning Administrator and County Attorney to be commercial. The county is only allowed to exempt up to 15% of potentially impacted properties, so AR1 and AR2 will be hit by the C&I tax if this option is chosen by BOS.
-This funding proposition amounts to asking all businesses countywide to finance a shift of business development to rail station areas.
-A county-wide C&I property tax will be passed on to consumers, increasing the costs of all goods and services purchased in Loudoun County, and driving business out of Loudoun County.
-You may be told these taxes will go away eventually. The promise was made that the Dulles Toll Road tolls would go away. Instead DTR tolls will be soaring to new highs, as these taxes will in the future.


1-Mile Rail Service District
Board-presented options: $0.09- $0.20 (7.2%-16% increase over $1.235 base rate)
Loudoun County Chamber of Commerce Resolution: $0.20/$100 (16% increase over $1.235 base rate)

Problems with this proposed tax:
-The 1-mile tax district will cause businesses to consider locating just outside the line, reducing the projected revenues from the tax district, while undermining the intent of transit-oriented development to consolidate in high-density cores. Loudoun has not studied this; tax districts were not factored into RCLCO’s Dulles Rail Fiscal Impact analysis.
-You may be told these taxes will go away eventually. The promise was made that the Dulles Toll Road tolls would go away. Instead DTR tolls will be soaring to new highs, as these taxes will in the future.
-Creation of a tax district would likely require approval by the Virginia General Assembly, meaning any districts could not go into effect for some time, probably mid-2013 at the earliest, if ever. (waiting for official verification)


Conclusion
-Loudoun’s Supervisors were...
elected on a platform of lowering taxes and making Loudoun attractive for new business. Either of these proposed taxes violates both of these principles. Without raising taxes, remaining as a funding partner in the Dulles Rail Project confronts Loudoun with a massive black hole of debt and cuts to other county services, which will not equalize for at least a quarter century.

-Loudoun’s board should Opt Out and let Fairfax and MWAA build rail to Dulles Airport or Rt. 606. Since the Dulles Rail Project Environmental Impact Study indicates that rail provides no congestion relief, the board should allow development to proceed as planned, and could even modify Moorefield Station zoning to allow full-rail build-out if the development proffers provision of bus service to and from the Rt. 28 station (5.2miles) or the 606 station (2 miles) if it is built by MWAA. Loudoun will still benefit from increased development without having to raise taxes to pay for it. By opting out, Loudoun can protect Loudoun taxpayers from being the back stop/risk taker for this project which has virtually no fixed costs or guaranteed income.



David LaRock

Loudoun Opt Out Group

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