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READY FOR TAKEOFF MORE INFO: Stafford airport officials seeking lower personal property tax on aircraft to attract businesses(Free Lance-Star, The (Fredericksburg, VA) (KRT) Via Acquire Media NewsEdge) Jul. 12--Stafford County's Economic Development Authority voted yesterday to recommend lowering the county's personal property tax on aircraft. With its 6-1 vote, the EDA showed it believes Stafford's rate should be in line with the county's neighbors to the north. David Beiler was the lone dissenter. Stafford's personal property tax on aircraft is $3 per $100 of assessed value. Planes kept at the airports in Manassas and Leesburg pay a 1-cent rate, according to a report by Stafford Regional Airport Manager Ed Wallis. The EDA recommended changing Stafford's rate to the same 1-cent per $100 of assessed value as its neighbors to the north. Beiler suggested a $1.50 rate, but that motion received no support from other EDA members. Stafford's Board of Supervisors assigned the aircraft tax matter to the county's EDA in May. The EDA will forward its recommendation to the supervisors, who could vote on a rate change in the next couple of months. Economic development staff and airport officials think a lower tax rate will draw businesses and aviation-related jobs to Stafford Regional Airport, where about half of the 40 T-hangar spaces sit empty. Just one corporate hangar has been built, although there is space for many more. EDA member Jack Rowley pointed out that a lot of investment has gone into the Stafford airport, nearby Centreport Parkway and the Exit 136 interchange off Interstate 95. County officials envision business growth there, with the airport being a key part. The Stafford airport has three businesses interested in developing corporate hangars totaling 130,000 square feet if the tax rate is reduced, Stafford Regional Airport Authority Chairman Walt George told the EDA. Not everybody wants to see more development. Ted A. Parks, who lives close to the airport, spoke against the lower rate yesterday. He said it wasn't fair to give aircraft owners a tax break, and said noise from the airport has harassed nearby property owners and reduced the value of their homes. Beiler called the possible tax reduction "special interest legislation" that would be a disaster for Stafford. He said it would "destroy the quality of life" by bringing "screaming jumbo jets" and low-paying jobs. The rest of the EDA disagreed. Airport officials made the case that differences in taxes at the Stafford and Manassas airports are extreme, especially for the valuable business jets that Stafford hopes to attract. For example, personal property tax on a $15 million business jet would be $180,000 a year in Stafford and $1,500 in Manassas. The developers of three corporate hangars built in the past six years at the Manassas Regional Airport would have preferred the Stafford airport if not for the personal property taxes, according to Wallis' report. Spotsylvania County has a higher aircraft personal property tax rate than Stafford--$5 per $100 of assessed value. But Stafford economic development officials point out that the planes using Spotsylvania's Shannon Airport are often smaller and less expensive. Scott Mayausky, Stafford's commissioner of the revenue, said the county's aircraft tax rate has a "colorful history." Stafford's Board of Supervisors lowered the tax rate from $5.49 to 10 cents in April 2001 before taking it back to $5.49 that September, Mayausky said. The rate dropped to $3 in April 2002 and has been there since. The county's 45 aircraft generated about $85,000 worth of tax revenue in 2007. About half of that came from the emergency helicopter that's kept at the Stafford airport. Wallis' report contends that real estate taxes on new hangars would make up the difference from the revenue lost from property taxes. To see more of The Free Lance-Star or to subscribe to the newspaper, go to http://fredericksburg.com/flshome. Copyright (c) 2008, The Free Lance-Star, Fredericksburg, Va. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |