HANLEY MISREPRESENTS BUDGET CONNOLY: CAR TAX CUT JUSTIFIES LOCAL TAX INCREASE
FOR IMMEDIATE RELEASE:
2/27/01 CONTACT: ARTHUR PURVES phone: 703 281-0176 e-mail: purves@fcta.org
SUPERVISORS COVER UP $60 MILLION TAX HIKE "Chairman Hanley's statement is false," Mr. Purves charged. The new budget's revenues of $2305 million are up 8 percent from last year's adopted budget revenues of $2135 million. However, the combined increase in population, school enrollment, and inflation is 5 percent (inflation-2.6 percent, enrollment-2.5 percent, population-1.5 percent). Next year the county is asking for $60 million more than is required to keep up with population growth and inflation. The tax increase arises principally from an average 11 percent increase in residential assessments. "To offset the increase in assessments, the county should lower the real estate tax rate to $1.17," Mr. Purves stated. "However, the supervisors are leaving the rate at $1.23." In questioning Mr. Griffin, Providence District Supervisor Gerry Connolly suggested that even with the increase in real estate taxes, county residents would be paying less overall taxes due to the car tax cut. "The supervisors are replacing the car tax cut with a real estate tax hike," Mr. Purves observed. Mr. Griffin correctly stated in his press conference that the car tax actually has not been cut. Residents are now paying the car tax through higher state income taxes. The result is that when state and county taxes are considered together, homeowner taxes are probably at an all-time high. When asked by Mr. Purves, Mr. Griffin admitted that almost none of the $60 million tax hike would be spent on school and road construction. "Most increases go to human services," Mr. Griffin stated.
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