Arthur G. Purves, president of the Fairfax County Taxpayers Alliance, reported today that the Commission on Virginia's State and Local Tax Structure for the 21st Century unanimously approved a proposed recommendation to remove the requirement that meals taxes in counties be subject to approval by referendum. The committee will also recommend removing the caps that currently apply to county authority to levy meals, lodging, and amusement taxes. The meals tax cap is 8 1/2 percent, including state taxes.

The action was taken at the commission meeting held in Charlottesville, VA., Monday, October 2, 2000. Mr. Purves attended the meeting. The commission justified its action by saying that counties should have the same latitude as cities, which do not have tax caps and a referendum requirement.

"In its desire to equalize the taxing authority of cities and counties, the Commission should have imposed the referendum on cities instead of removing it from counties," Mr. Purves said. "Based on the last 25 yearsÌ experience, if this recommendation becomes law Fairfax County will have a meals tax after the next school board and supervisorsÌ election. Candidates will repeat their ploy of denying tax increases before the election, suddenly discovering a crisis in school funding after the election, and then being ÎforcedÌ into raising taxes."

Total county taxes per resident have increased 69%, adjusted for inflation, since 1975. Furthermore taxes should have decreased since the percent of the countyÌs population attending public school has dropped by 30 percent since 1975. The result is that county tax increases over the last 25 years now give Fairfax County government an extra $1 billion per year and have doubled the county budget.

"What have Fairfax County taxpayers gotten in return for paying an extra $1 billion per year?" Mr. Purves asked. "They have gotten crowded roads and crowded schools." The commission is ignoring two major factors: The tax structure is giving state and local government too much money and there is no accountability for government spending. Schools and government do not measure the effectiveness of programs that have driven the tax increases. "The commission should be demanding accountability for mushrooming government spending rather than making it incrementally easier for government to raise taxes," Mr. Purves commented.

The Commission will release its report on December 1, 2000. To take effect, the General Assembly and governor must approve the CommissionÌs (www2.institute.virginia.edu/taxstudy) recommendations.