Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
Goochland EDA debates phasing out 'people' tax and asks board to consider options
Summary
The authority reviewed benchmarking on the business 'people' tax (gross receipts/occupational license) and discussed proposals to phase it out or raise the exemption floor; members asked how to replace an estimated $1.8 million in revenue and agreed to pursue a Board recommendation, with no formal vote taken.
During its Aug. 20 meeting the Goochland County Economic Development Authority discussed the future of the local 'people' tax (a business license/gross‑receipts tax referred to in the meeting) after staff provided benchmarking materials comparing neighboring jurisdictions and thresholds. The chair characterized the tax as "an owner's tax" on small businesses and said it may be time to consider phasing it out or increasing the exemption floor to better support startups.
Staff described neighboring approaches — thresholds ranging from flat small fees up to tiered gross‑receipts thresholds — and provided revenue graphs showing a sizable jump in locally reported gross‑receipts tax revenue between 2023 and 2024. One member asked a practical question: "How do we replace $1,800,000 in income?" The chair and others suggested phased approaches (raising the floor or a phased reduction) but acknowledged the fiscal impact would need mitigation strategies.
Members agreed the topic should be refined and the EDA should consider a position or resolution to forward to the Board of Supervisors, but no formal motion to recommend a specific change was made at the meeting. Staff will continue analysis and provide additional data to frame potential tradeoffs between supporting small businesses and preserving county revenue.
