The Board of Supervisors held a special meeting on 28 August to hold a public hearing on a proposed change in the property tax rate for aircraft kept at the Cavern’s airport. The change would reduce the tax rate from $3.90 per $100 of depreciated value of an aircraft to $.50 per $100 of the current blue book value of an aircraft.
According to Powell Markowitz (Airport Commission) a reduction in the tax rate on aircraft would attract more people and businesses to keep their aircraft in the county. If I understood correctly, the net effect would be to provide more tax revenue in the long run. To be sure, Mr. Markowitz and his associates have clearly done their homework (Lots of numbers and supporting rationale.) The proposed reduction in the tax rate is reasonably consistent with the tax rates levied by other counties within the state. The rates vary from pennies on the dollar to rates slightly above the rate proposed for Page County. The basis for aircraft valuation varies from county to county. The proposed use of blue book value for aircraft kept in Page County seems to be reasonably consistent with how other counties operate. The long term promise from the airport folks is there will be offsetting revenue accruing to the county by virtue of having more taxable aircraft kept in the county (taxed at a relatively constant value (i.e. blue book vs. a declining value based on a straight line depreciation). In addition, it was suggested additional revenues would accrue to the county based on some unspecified increase in better paying jobs in support of the airport operations and some unspecified increase in tax revenue due to more unspecified businesses wanting to come to the county.
The improvement and expansion of the airport would be funded, I assume over time, by Federal grants (95%), State grants (3%), Luray (1%) and Page County (1%). At present, the airport folks have obtained a state grant to begin the process in the amount of $500,000. If I understood correctly, it would be used to add 30 T Hangars. Apparently, there are approximately 15 people with aircraft waiting in the wings, so to speak, for these hangers with promises for more.
One citizen, John Rogerson, spoke at the public hearing. The essence of his concerns seemed to reflect skepticism mostly about the promises offered as part of the rationale for reducing the tax rate in that it benefited the wealthy aircraft owners and would cost the county more money in the future. I believe he was referring to the 1% contribution by both the town and county to support the development of the airport. In terms of real dollars, it is unclear what that cost would be. As a practical matter, I share some of Mr. Rogerson’s concerns. If we build it, will they come?
The airport folks are asking the county to take what I would call a business risk by making an investment. The investment would be a short term loss of some tax revenue with the promise of a long term return on that investment of higher tax revenues and possibly the creation of a few new jobs. Mr. Cubbage asked when the county might expect to begin realizing the promised returns. Mr. Markowitz suggested that it would certainly begin within a year.
Mr. LaFrance offered a very astute observation. If I understood correctly, it would seem the county has to come to grips with what it really wants the county to look like down the road. Should the county strive to maintain its rural character or should it really look to the future and support economic growth opportunities? I gathered the real decision is a tough one. Certainly anything that increases tax revenues and adds jobs to the economy is desirable. The decision would boil down to “at what cost,” not only in terms of financial support but at some compromise with maintaining the rural character of the county. I do not envy the Board having to make this particular decision.
The issue will be offered for vote at the next regular session of the Board of Supervisors.
I have attempted to capture the essence of the hearing. If I have misrepresented anything, comments and corrections are welcomed.
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13 comments:
Perhaps we should have a new tax to buy new aiplanes for the 4 people who fly in and out all day long. A SPECIAL DISPENSATION FOR MORE AIR POLLUTION? WHAT A JOKE.
This attractive local airport seems to be for the benefit of a local "few". It has been there since 1972 (or before,sorry if my data is wrong) and what has it accomplished as far as improving the local economy for Page County? It seems to be used mostly for student pilots, pleasure trips, personal recreation, etc. Every now and then you might hear about some big shot coming in to scout the area for potential future "industry" which might decide to locate here. What exactly does this particular airport bring to Page Co. to improve the economy and/or supply more local employment. They have had 30 plus years to accomplish a goal of helping locally. How much more time or money or leeway or special rates do they want or need before it can become beneficial to "US, PAGE COUNTY"!! Give back what you are asking for. It has been long enough.
That's a good point. If the airport didn't bring in business yet, maybe it's not a valid argument that it will in the future. But I think the reason it keeps getting passed is that they don't actually ask for much from the county. They bring their money in from state and federal grants. Even with this tax rate change from $3.90 to .50, by changing the basis, they are bringing in the same amount of money at .50 as they were at $3.90
With all the other stuff they ask for, they ask the county to pay only 1% of the expenses, and the Caverns pays for the annual operating expenses. So when you go to these meetings, you kind of feel like, "hey, why not give it a shot" It doesn't cost much to the county, and maybe it will pay off.
So it's hard to tell the Supervisors they should take another action, when it seems sensible to give the airport what it asks for.
Just exactly what Page County needs: a bigger better airport, lower taxes on bigger better planes and more bigger better planes to have lower taxes on. And then all of this will bring bigger better industry, bigger better jobs and a generally all 'round bigger better community, I suppose! But what has 'Luray International' really brought us since its construction? I've asked a number of average tax paying citizens that very question and not one could think of any benefit to the average guy. Sure, Powell Markowitz and a few others of similar ilk have a rich-boy play-toy basically funded by the working people. But what has it done for the community??? And when one questions the questionable logic of squandering our effort on this expensive rich-boy play-toy; we're told not to worry, it's funded mostly via grants! People, where do you think the grant money comes from? On this one, Markowitz and the other 'Luray International' financial conspirators are borrowing a chapter directly from our out-of-control and soon-to-be former Sheriff Presgraves' playbook. And that is: throw the money around any way you choose until the people begin complaining. And when they do complain; simply say, "Hey, don't worry, it's only grant money". We don't need any more airport spending and we sure don't need any more Danny Presgraves. When the opportunity arrives, vote 'NO' on both!!
So exactly how much does 1% equal in terms of the green stuff? I agree that it is probably hard to say "no", but good grief, 30 plus years is a long time to wait for at least a little payback to the community. Federal grants come from the pockets of taxpayers. Expansion and progress I assume are for the purpose of being economically beneficial and help our families find local employment if the airport helps to bring in more industry. Exactly what year, and how many more grants will it take to BENEFIT our citizens?
This is the kind of sentiment that our Supervisors need to hear expressed. In general, nobody shows up at their public hearings, so as far as they know, they are doing a service to the community. But they haven't voted on this airport tax thing yet. Give them a call.
LaFrance 743-3715
Hoke 743-9434
Rust 743-5316
Cubbage 778-3227
Strickler 652-3211
I realize the subject of this particular blog is inre airport matters, but what you seem to be saying is if the citizens don't attend the "public" meetings, they cannot expect to have their best interest taken into consideration. I, generally, disagree with that. The Board of Supervisors and the Luray Town Countil were voted for and elected on the platforms they presented to the people of Page County. They were trusted to represent the citizens, our opinions, and our ideas.They were also trusted to be fully informed on most matters and if they weren't, they needed to speak with their districts and learn, learn, learn. Unfortunately, hoards of citizens attending the "public" meetings during the landill fiasco were subjected to a (very expensive)time clock. I think 3 minutes was the maximum each speaker was allowed. We all know how that ended. During this period is when the citizens became, and still are, disappointed, disillusioned, and legally robbed of their hard-earned money, while some became wealthy. The seeds of discouragment were planted and they have continually blossomed ever since. PCW is a wonderful and beneficial tool to reach the community, but until the citizens start to have trust in their elected representatives again, attending "public" meetings and speaking out is going to be a slow undertaking. 55 members of PCW is admirable, but to reach the majority....I ask....how does it happen? If people don't hear by word of mouth or a small ad in the local newspaper, how can anything rally the disinterested and disheartened? We (and myself included) think the meetings have become a joke...denials, ignorance, pastries, retreats,etc.
Oh, believe me, Donna, I don't condone the current behavior and actions of the Board of Supervisors. I also think the public hearings are a masquerade, an insult, and a literal crime against the citizens of Page. I can see that the citizens are disheartened and passive, and some have told me that they believe the Supervisors just hide behind the process and then do what they want anyway. That's also what it looks like to me, usually.
I can understand that the citizens of Page may have given up. I hope that Page County Watch can spark some hope, and get some fight left in people.
There are elections coming. It is my personal hope that the citizens of Page will pay close attention to those elections, and really look into who they are putting into those jobs, and why the people are running.
I agree with you that the citizens SHOULD be able to expect that the Supervisors will take their best interests into consideration. But what should happen and what does happen are not the same thing. I agree that the Supervisors SHOULD be asking people what they want. But they don't do that.
I'm hoping that Page County Watch can help to convince people that when these Supervisors don't pay attention to what the citizens want, the citizens have to bop them over the head, remove them from office and throw a fit.
And call them during dinner time, and annoy them, and make their jobs unhappy, while you're at it.
This job doesn't pay real money. If you want them to pay attention, make it harder and more inconvenient to go against the people's wishes, than it is to do what the people want. Let them know what the people want.
It doesn't do any good to say, "we should be able to trust that they will actively find out what the people want" when you have so much evidence that that is just not the case.
Alice
This just does not seem fair to all the other tax paying citizens that may own another type of recreational toy, such as an RV or Boat. They should get a tax break also paying tax on a $200,000.00 Camper or a $40,000.00 Boat. This is why I chose to register my RV out of state to keep from giving it to the county to waste on useless aggendas. I am Just saying that If you give it to one group then you have to give it to the others, and they the people that live in this county are the ones that is going to have to pay the price. The Rich people that have Airplanes will get to keep there money for more toys. Like they say the rich get richer and the poor get poorer. Just a Thought
Understand, the change in the tax will not cause anyone to pay less tax for their airplanes. What they've done is change what's called the BASIS on which the tax is calculated. So the former rate was applied to a different BASIS than the new rate is applied to, and in the end, the people are paying the same or more tax money with the new rate, over the long run. Before, the depreciation calculation was different. So they are not giving an actual tax break to anyone. They are just able to advertise the rate as a lower rate, so it will be in line with what other counties are doing.
The real issue here is whether or not having a bigger and better airport is a goal of the county. I don't see a real reason why we should not want a nice airport, but I'd be open to hearing arguments for or against.
Alice
I was wondering...if grant money for the expansion of the airport is approved but not available for another year or so, does the county/town/caverns lend the money initially to start up expansion and then the money is paid back once the grant money comes in?
See above question....? Thanks
Yes 1% is a small amount, but understand that Page County and The Town of Luray each give $30,000 per year toward the airports operating budget. Think of the money though the years that has already been spent. A elderly person on fixed income pays $3.90 per hundred on their car to go back and forth to buy their food, but the fatcats that has a $200,000 airplane "toy" only pays .50 per one hundred. Something is wrong with that. I live in the county and I think we need to just say no, to any more airport expansion. Mr Markowitz appears to want his cake and eat it to. He has already borrowed $47,000 ($94,000) from the town and county that is past due on payback. Come on people get involved with these decisions before we give away the store.
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