The Dulles Regional Chamber of Commerce (DRCC) strongly supports substantive reform of Virginia’s tax and revenue system to more closely align the source of the Commonwealth’s tax revenues with the spending priorities of state and local government. This should allow for investment in essential infrastructure that is critical to the economic health of the revenue-producing regions in Virginia, including specific support for a rebate of a percentage of the state individual income tax back to the locality from which it was collected to help address this needed investment. Access to more diversified streams of revenue for high growth areas to support the increased costs associated with that growth, such as building new schools and roads, and paying the salaries of teachers and public safety personnel is also critical to DRCC.
The Dulles Regional Chamber urges lawmakers to support business-friendly tax policy that considers policies in other states, to ensure Virginia businesses can remain competitive in national and international markets and to fully consider of the overall economic impact of a business or industry’s presence in Virginia prior to awarding or removing any business sales tax exemption, as well as before considering any other significant change to business tax policy.
To support sound fiscal policy, DRCC supports continued investments in the “Rainy Day” Fund, the FACT Fund and targeted reserve funds as a hedge against the sluggish state economy, as well as federal spending reductions that have a disproportionate impact on the state economy.
The Dulles Regional Chamber is also focused on the following specific issues this session:
- We supports a policy change that will ensure online hotel room aggregators are held to the same regime with regard to tax collection and remittance as other brick and mortar hoteliers providing such services. This is a critical issue that impacts transient occupancy tax collection, remittance and investment, and places “bricks and mortar” entities at an unjustifiable competitive disadvantage with respect to their online counterparts.
- In addition, DRCC strongly supports legislation to require that the state place its share of teacher pension liabilities on its financial statements given local governments have no control over decisions made with regard to the program and it could have a negative impact on their bond ratings to have those liabilities on the financial statements for local governments.