In the wake of a public outcry about increasing property tax bills, the City Council is looking at other ways to collect revenue to offset an increasing reliance on property taxpayers. Potential new taxes would target cell phones, sewers, tobacco and movie tickets.
One option before the council will target cell phone users, who are increasingly abandoning land lines. A potential cell-phone tax would charge city residents $3 every month per cell phone. Another option would increase the tobacco tax rate from $0.30 to $0.70. The cell-phone tax and the tobacco tax are scheduled for a public hearing at City Hall on April 26.
In addition to targeting cell phone users and smokers, two new tax possibilities target the city sewers. One possible ordinance would increase the sanitary sewer line maintenance charge from $0.60 per 1,000 gallons of usage to $1 per 1,000 gallons of usage. Another would increase the fees charged for connection to the city's sanitary sewer system. Both of these new taxes will receive a public hearing on April 16.
MOVIEGOERS might have to pay an admissions tax of $0.50 per ticket to the city government, a potential blockbuster for revenue. But Virginia law does not allow city governments to narrowly target movie theaters, so an admissions tax would have other implications in the city. It would also target live theater, walking tours, entertainment concerts and non-school sporting events.
"The city, for a number of years, has been interested in this particular tax," said Mark Jinks, assistant city manager for fiscal and financial affairs. "The way that state law is written is not straightforward and does not allow you to really hone in and place the tax on just movie theaters."
Council members are concerned that an admissions tax might force nonprofit organizations to collect tax at events such as fund-raisers. A draft ordinance created by city staff created a number of exemptions, including school events, museums, gardens, zoos, trade association meetings and boat charters.
"The exemptions would also apply to events where 100 percent of the gross proceeds go to charitable purposes," said Jinks. "The way this ordinance is crafted the whole price paid would be considered a donation and it would not be defined as an admission so those events would all be exempt."
AT TUESDAY'S City Council meeting, Mayor William Euille told his fellow council members that the admissions tax offered an opportunity for the add/delete process, when members are encouraged to find ways to pay for new initiatives or projects.
"Wisdom tells you that if you see something, go for it," he told council members. "The door is open. Walk through it."