Transcript Henrico, VA presentation

Check ‘Yes’ for “Henrico, VA”
Presentation for Henrico County
Residents and Civic Groups
April, 2008
PURCHASING A
COMPUTER
ONLINE
PURCHASING A COMPUTER
ONLINE
A Henrico resident with a “Richmond, Virginia”
mailing address buys a computer on the internet
from an out-of-state company. That company
collects the sales tax and sends the tax to the State
Department of Taxation and labels the sale as having
occurred in “Richmond, Virginia.” Consequently, the
wrong locality receives this money.
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CATALOG SALES
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CATALOG SALES
A Henrico County resident purchases some sporting
goods from a catalog company with an out-of-state
headquarters. The county resident’s address is
“Richmond, Virginia.”
After the sale, the out-of-state catalog company
sends the sales tax that it has collected to the State
Department of Taxation. The sale is depicted as
having occurred in “Richmond, Virginia.” The
wrong locality receives this money.
Sales Tax of Large Retailers
Paid by Out-of-State
Businesses
SALES TAX OF LARGE RETAILERS
PAID BY OUT-OF- STATE BUSINESSES
A national department store chain has multiple
“Richmond, Virginia” locations within the central
Virginia area. Some are in the county and some are
in the city. The retailer collects the sales taxes paid
by county residents and remits one payment for all
of these locations to the State Department of
Taxation on a monthly basis. The retailer notes that
the sales occurred in “Richmond, Virginia.”
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Certain Vehicle Leases
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CERTAIN VEHICLE LEASES
A county resident with a “Richmond, Virginia”
address goes to a local car dealership to lease a
vehicle. In this particular lease, the leasing company
— located out-of-state — is responsible for filing the
personal property tax return with the correct locality.
That company files with the city due to the
“Richmond, Virginia” mailing address, even though
the person who leased the vehicle lives within the
county. In this case, the county does not receive the
revenue it is due and the leasing company pays a
higher tax (due to tax rate differences).
Companies Leasing Business
Equipment Such As Copiers
COMPANIES LEASING BUSINESS
EQUIPMENT SUCH AS COPIERS
A manufacturer leases a copier to a Henrico
company with a “Richmond, Virginia” mailing
address. The manufacturer is responsible for
reporting the business personal property for tax
purposes. The manufacturer reports this equipment
incorrectly to the city for personal property taxes.
This results in both the company paying more in
taxes due to the city’s higher tax rate and the county
losing this revenue.
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Finding the Correct Locality
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USPS vote/cannot vote by zip code
Allowed to Vote:
23075
23228
23229
23231
23233
23238
23242
23250
23255
23288
23294
Cannot vote:
23222
23223
23226
23227
23230
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Why Support the Address Change?
• Matter of Fairness :
– Henrico citizens should benefit from Henrico
taxpayer dollars.
– Henrico citizens should not pay for the
services they do not receive.
– It is estimated that $5 million in revenue
annually supports City services because of
the address confusion.
– There are a number of initiatives that $5
million would fund.
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• $5.0 Million Would Accomplish One of the Following:
– Hire 100 new teachers.
– Operate 2 new elementary schools or 1 new middle
school.
– Purchase 54 new school buses.
– Hire 90 new police officers.
– Purchase 150 marked police cars
– Purchase and fully staff 4 new EMS units
– Equip and fully staff a new fire station
– Develop 2 new community parks.
– Double the annual budget for library materials.
– Could nearly double the budget for County’s Real Estate
Tax Advantage Program (current budget = $6 million)
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In addition, Henrico citizens may be paying more
than they have to:
Tax/Fee
Henrico’s
Tax Rate
Richmond’s
Tax Rate
Personal Property
$3.50/$100 $3.70/$100
Machinery & Tools
$1.00/$100 $2.30/$100
Motor Vehicle License < 4,000 lbs.
$20
$23
Electric Consumer Utility, Residential
$1 cap
$4 cap
Gas Consumer Utility, Residential
No Tax
$4 cap
Check ‘Yes’ for “Henrico, VA”
Presentation to Henrico County
Residents and Civic Groups
April, 2008