Legislative Newsletter
February 1, 2008

There's Still Time to weigh-in on homestead exemption-
do it today!

A newly released report from the Weldon Cooper Center for Public Policy has confirmed what VA West has been saying since last year. Real Estate Tax Relief Would Only Shift Tax Burden; Localities Ought to Restrain Spending Instead.  

You can read this week's press release and full report here.

Homestead exemption, which would allow local governments to exempt taxes on up to 20 percent of owner occupied residences, doesn’t take into account that you and your business will be making up the difference in tax revenue. While well intentioned, homestead exemption also sets up an uneven, split-rate tax system going forward. Instead of everyone paying the same effective rate, owner-occupied residences would pay up to 20 percent less of their assessment with commercial property owners and apartment owners paying at the 100 percent rate. Virginia 's number one status as the best state to do business could well be in jeopardy.

Contact your House and Senate members now and tell them there are better ways to provide tax relief than enacting this amendment.  

Key members needing your calls and e-mails today are Senators Saslaw, Colgan, Wampler, Norment, Stolle, Stosch, Hanger, Watkins, and Quayle.  They need to hear from business owners and major employers, landlords and tenants-- not just lobbyists.   

Crush of bills need work before crossover.
There are 2,850 bills and hundreds have seen nearly no action or committee rereferral. As the February 12 crossover looms, a good number of bills are likely to be left to die in committee. Any bill with a hint of fiscal impact is being referred to a money committee.

Revenue forecasts are expected to be down when the next report is given in February, promising an even leaner budget. Many worthy projects and programs are likely to be put off or left unfunded. In Senate Finance this week, the famous "clause" was added to many bills and means "if funded." A bill, like the Wilderness Road designation in Western Virginia, may be reported from committee but with the clause it means that little is likely to happen, i.e., no signs will be going up. Expect more clauses and many bills being tabled or passed by indefinitely.

Healthcare and Virginia Share.
Healthcare costs are consistently one of the most important issues for business. Most mandates have been shuttled off to the Mandates Commission or have been significantly modified to keep costs down. And a promising new program is making progress. Virginia Share (HB 593/SB 578) would address a need for small businesses. VA West supports this effort.

Here are a few details:

• Working individuals only  - Virginia residents who work at least 30 hours/week
• Small businesses with 2-50 employees
• Employers cannot have offered health insurance to their employees for the past 6 months.
• Applies to low income individuals 
• Shared Premium assistance - employer, employee and the state each pay 1/3 of the cost up to $75 per individual for health insurance
• Pilot program to provide health insurance premium assistance for low-income employees of small business
• Program will be evaluated, after two years, to determine whether it should be continued, expanded, or ended.
• Virginia Share Board
• 11 Virginia residents
• Determine whether a plan qualifies as Virginia Share plan.
• Determine appropriate deductibles and co-pays (not included in legislation).
• Determine annual maximum cap.
• Establish and maintain a first come, first serve waiting list.
  

This format allows you to check bills and their status at a glance, by category. If you have questions along the way, please feel to contact Joyce Waugh at jwaugh@roanokechamber.org or 540.354.5487 or Tori Williams at twilliams@roanokechamber.org or 540.983.0700 x 229.  

Click here to contact your legislators.

We’ll be sending out ACTION ALERTS! to enlist your help when needed. Please respond when requested. Your voice counts! If there are bills or topics you'd like us to include, let us know. We appreciate your feedback.  

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