Norm @ TQ has the gory details on the House side:
Lastly, the Lt. Gov., Bill Bolling, has offered his thoughts on all the fees and in the process, we learn that the House baked-in a tax increase:
In his Executive Budget, Governor Kaine recommended making various changes to Virginia’s tax code to conform our state tax code to the federal tax code. As a result of these changes, certain taxes on manufacturers based in Virginia would increase by $60M.
Interestingly, the Senate removed this “manufacturer’s tax” increase from their budget, but the House accepted the Governor’s recommendation, which would, in effect, increase taxes on manufacturers by $60M.
Ah, the anti-tax label. So easy to apply, even easier to remove.
Indeed.
I must confess this hits a bit closer to home than it would for most. Here in Spotsylvania, industrial land was the only class of property that rose in value during our most recent assessment. Thus, amidst all the proposals for new tax rate (equalization is 83 cents, the county administrator wants 86, the Board advertised 88), any rate above the curren 62 will be a tax increase for them. Now, there about to get another tax increase slapped on them – by nearly all of the very people who were supposed to prevent this.
That said, please note, “nearly.” For Bill Bolling himself (the words Norm cited were from the LG’s column on the budget) takes a dim view of the idea:
I would also encourage the conferees to reject Governor Kaine’s proposals that would result in higher taxes for retailers and manufacturers. I believe that these proposals would also violate our promise to avoid general tax increases.
Nicely done, Mr. Bolling. We can only hope your fellow Republicans in the House (and the Governor’s office) will listen to you.
