Assembly Backs Bill Allowing Middleburg to (legally) Impose Business Tax

Loudoun Now • February 22, 2018

By Patrick Szabo

Two bills that would amend the Middleburg Town Charter to authorize the collection of its longstanding business personal property tax are moving through the General Assembly.

The town has been collecting the tax from businesses at a rate of $1 per $100 in assessed value for decades, but Town Administrator Martha Semmes said a problem was discovered late last year. Town Attorney Martin Crim realized that a section of the Virginia Code restricts towns from assessing the tax if it’s at a higher rate than the vehicle tax. Since Middleburg phased out its vehicle tax 20 years ago, the business tax was, by default, higher.

“He felt that we should not be assessing that business tangible personal property tax,” Semmes said.

To correct the problem, the town staff worked with then-delegate Randy Minchew and Sen. Jill Vogel (R-27) to draft bills that would allow the town to continue assessing the tax without reinstating the vehicle tax. Vogel introduced the Senate bill last month; newly elected Del. Wendy Gooditis (D-10) introduced the House bill.

The Virginia Senate passed Vogel’s bill by a 37-3 vote last month. The House also approved the measure, although it stripped an emergency clause designed to allow the change to take effect upon the governor’s signature. The House bill is under review by the Senate.

Truman Braslaw