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Stephens City Finance Committee backs eliminating personal property tax, proposes higher utility consumption taxes
Summary
The town Finance Committee recommended replacing the personal property tax with higher utility consumption taxes and specified proposed new rates for natural gas and electricity to take effect July 1, 2020. The recommendation goes to the full council for consideration.
The Stephens City Finance Committee recommended Feb. 26 that the town eliminate its personal property tax and offset the revenue with higher utility consumption taxes.
According to committee minutes, the panel proposed raising the natural gas consumption tax from $0.03 per CCF with a $0.50 base to $0.05 per CCF with a $1.00 base, and increasing the electricity consumption tax from $0.0033 per kWh with a $0.50 base to $0.03 per kWh with a $1.00 base. The recommendation lists an effective date of July 1, 2020. The minutes state the committee reviewed February financial results as background for the proposal.
The action recorded in committee minutes is a recommendation to the town council; it is not a final ordinance or tax change. The committee's recommendation must be considered and approved by the Town Council before any tax changes take effect. Finance Committee materials list Joseph W. Hollis as chair; the minutes include a signature line attributed to the chairman.
The minutes do not provide an estimated revenue replacement figure, fiscal analysis showing distributional impacts, nor a public hearing schedule; the full council agenda and staff analysis will determine whether the proposal advances to a vote.
If the council takes up the recommendation, next steps would typically include a staff fiscal report, public notice and statutory hearings as required for changes to local tax ordinances.
