The Prince William County finance department is asking supervisors to consider a freeze on some tax breaks as the county tries to deal with an expected $190 million shortfall in fiscal 2010.
In a letter to County Executive Craig Gerhart, Finance Director Chris Martino recommended postponing tax exemptions that aren’t mandated by the state constitution.
“Considering the negative revenue impact to Prince William County and its taxpayers if exemptions are granted, the Finance Department does not believe approving tax exemption requests … would be fiscally sound in the current financial environment,” he wrote.
Board of Supervisors Chairman Corey Stewart, though, opposes such a move. He said the county is trying to tackle its budget issues by cutting spending, not by increasing residents’ tax burden. Supervisor Martin Nohe, R-Coles, agreed with Martino that tax breaks would strain the budget during an already difficult time.
“We can hardly afford to grant more tax exemptions,” he said.
Nohe said the last several times the board received exemption applications, they were incomplete or insufficient, and did not make it past initial public hearing stages.
He was concerned that without a halt on certain tax breaks, nonprofits that are trying to “pinch pennies” could flood the Board of Supervisors with requests that likely would be rejected anyway.
“No matter where you draw the line, someone’s going to feel it’s unfair,” he said.
Organizations classified as bring religious, charitable or benevolent associations are exempted from taxes under state or county code. Organizations not classified as exempt under the codes must receive such a designation from the Board of Supervisors.
“Right now, at a time when the country’s headed into a deep, deep recession, we need the help of charities more than ever before,” Stewart said. “Now is not the time” to increase tax burdens, he said.
About 50 properties in the county receive real estate tax exemptions that add up to just under $700,000. Though the properties likely would be in categories that aren’t automatically granted exemptions, they would continue to receive these tax breaks under the proposal.
