Item Coversheet



Staff REPORT
Information/Discussion ITEM

Item # 11.a.

SUBJECT: 

Business License Tax Rates for Calendar Year 2023 (C. LeMarr)(

DATE OF MEETING:  

September 27, 2022

Staff CONTACT(S):Connie LeMarr, Assistant Director of Finance



SUMMARY and RECOMMENDATIONS:

Provided are the business license analytical reports for Town Council review and discussion in regards to rate setting for 2023 tax year.  

BACKGROUND:

On June 2, 2022 Town Council was provided business license reports capturing multiple years of analysis through May 2022.  The reports provided tonight update the May information through September 21, 2022 data.  Going forward this data will be provided to Council in September each year for review and for use in determining the next year’s business license rates.  All data is presented in aggregate as disclosure of individual business data is prohibited by VA Code § 58.1-3.


ISSUES:

Tonight’s discussion is to receive Town Council direction regarding 2023 business license tax rates (tax rates are aligned with the calendar year).   Any 2023 rate changes must be adopted by December 31, 2022, prior to the renewal process in January.

In order to change business license tax rates for 2023, a public hearing is required and must be advertised at least 7 days in advance of the public hearing.  The timing to adopt any changes is very limited and shown below under Critical Timeline.

 

CRITICAL TIMELINE:

September 27, 2022 - Town Council direction regarding potential tax rate changes and recommend rate maximums by business category for public hearing notice (use the BPOL Locality Rate Comparison & Rate History reports for guidance).

October 7th/14th, 2022 – Public Hearing Ad run in newspaper

October 25th, 2022 – Public Hearing on 2023 rates & Council discussion

 

Meeting options to vote on changes to 2023 business license rates:

October 25th -if rules set aside for vote on same day as public hearing

November 15th, 2022

December 13th, 2022



BUDGET IMPACT:

Revenue projections by business category are provided to facilitate discussion, however, there is no budget impact unless Town Council adopts new license rates for 2023.

ATTACHMENTS:
Description
BPOL Locality Rate Comparison & Rate History September 2022
BPOL Comparison Historical September 2022