Minutes 05/25/1954 - Laserfiche WebLink

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2~ TUESDAY MAY 25-,-19~4 MEHORANDUM 12 April 1954 TO: Special Business License Tax Study Commission, City of Martinsville, Virginia FR01: Bureau of' Public Asministration, University of Virginia (Dr. Rowland Egger) SUBJECT: Trends in operating ratios among classified businesses in Martinsville Business and Occupational License T~~ Ordinance At the time the Bureau of Public Administration assisted the City of l~rtinsville in the reconstruction of its business and occupational license tax system in 1948 it was pointed out that the classified tmsinesses, which were taxed on the basis of gross receipts but the burden of uhlch under the classification system was calculated to apply equitably according the the "value added" index, should have their relative positions reappraised from time to time, since changes in economic conditions might in some circumstances be sufficiently drastic to necessitate a change in the formulae by which the equities among the several classes were originally established . ~:~ Q~ ,Qw rr Ii The business and occupational license tax structure adopted by the City Council on the basis of our surveys reflected very faithfully the economic characteristics of the various classes of businesses Hnd occupations according to income tax and other data assembled by the Bureau covering conditions prevailing in the immediate post-Har period. The Bureau has continued to gat..1;.er and analyze these data throughout the intervening period. It is our considered opinion that during the past six years, and especially during the past two years, trends have changed in the operating ratios of certain of the classes of businesses licensed bJr the City of Martinsville to justify a reconsideration of the rate structure for the classified groups. This is distinct~ not a recommendation that the City of Martinsville undertake any general revision of its business and occupational license tax ordinance. The structure of the ordinance is thoroughly sound, and its provisions have been demonstrated to be capable of efficient administration. Our recommendation is simply that the relationships among the classified businesses and occupations be restudied to see if, in the interests of equity, they should be revi sed. The Committe, in our judgment, should take into account in its reconnaissance of this problem, both general trends in the various types and classes of business and the actual operating experience of Martinsville licensees. The first type of information is available from the Bureau of Public Administration, and appended to this memorandum. are tables indicating the trends in operating data since the original Martinsville study was undertaken. The second type of information must be taken from income tax returns - preferably Virginia State returns. In order to secure the most recent data,