Public hearing scheduled to eliminate merchant capital tax in Montgomery County

0

MONTGOMERY COUNTY, Va. (WDBJ) – The Montgomery County Merchant Capital Tax is nothing new, it’s a tax on inventory that businesses are required to pay each year. Currently, the county sets its rate at $3.05 per $100 at an assessment of 20% of the actual inventory value.

He was recently honored at a meeting of the Montgomery County Board of Supervisors. The topic made its way into Monday night’s meeting, where at least half a dozen business owners called on the board to eliminate it altogether during the public comment section.

“This is an unfair and voluntary tax. It’s unfair to big traders and small traders,” one commenter said.

“As business owners, we implore you to open your hearts, we have families,” one commenter said.

Overall, the board was receptive to public feedback, with most saying they agreed that it needed to be eliminated.

“I agree it’s an unfair tax and needs to be removed,” supervisor Darrell Sheppard said.

“We keep talking about good, trying to find a way to make it fair. There’s only one way to be fair and that’s to eliminate it,” supervisor Steve Fijalkowski said.

The challenge that needed to be discussed was how soon the board would decide to eliminate him. Indeed, the tax is expected to generate $1.5 million for the 2023 budget. If the council eliminates it before 2023, it would have to amend the budget.

“The other question/concern is that since it’s part of our budget, how could we replace/replenish that $1.5 million,” President Sherri Blevins said.

But on Monday night, in a 6-1 vote, the board voted to hold a public hearing where the tax would be scrapped from January 2023. That means it would be part of the budget discussion for 2024 and that the 2023 budget would remain unchanged.

The public hearing will take place on October 11. The board has the option to vote on eliminating the traders’ capital tax that night, but it’s unclear at this time if that will happen.

Share.

Comments are closed.