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County may create new taxes to raise money
Because of shrinking revenues caused by lower real estate values, Loudoun officials are considering an assortment of new taxes to help fund services and pay for future road and school projects.
"We have a lot of things to pay for in our fast-growing county," said Supervisor Andrea McGimsey (D-Potomac) July 15.
One of the new revenue sources officials are pursuing is an increase in the county's commercial real estate tax.
State law allows jurisdictions to levy a 25-cent surcharge per every $100 of the assessed value on office buildings and industrial space. The change, according to Loudoun's budget manager, Ari Sky, could generate about $30 million annually for Loudoun.
Hoping the money will be spent to improve roads in Loudoun's business areas, the 1,300-member Loudoun Chamber of Commerce said it supports the plan.
"This is an imperfect compromise to help unchoke roads," Chamber President Tony Howard recently told the Board of Supervisors.
Also, the county may tax cigarettes by 30 cents a pack, which could add $3 million annually to county coffers. The Town of Leesburg has a 50-cent tax on cigarettes.
In addition, Loudoun is looking at creating a 10 percent tax on the sale of tickets to events, concerts and museums in Loudoun. Only three other counties in Virginia have such a tax in place.
Both of these taxes would require approval by state lawmakers
Finally, Loudoun officials are contemplating a 4 percent tax on food and beverages sold in restaurants. This would yield about $13 million a year to be spent on school construction and paying down debt, officials said.
This tax, though, would have to be approved by voters in the form of a referendum. A similar referendum in 1998 failed.
The county may try to get this on November's ballot.
The board will examine these proposed taxes again after its August recess.
Contact the reporter at jjacks@timespapers.com
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