HJR 532

Commission on State and Local Government Responsibility and Taxing Authority

December 16, 1997, Richmond

Public Hearings

The commission heard from the public during its final meeting for 1997. Twenty-seven individuals spoke to the commission on a variety of topics, including the earned income tax credit, Governor-elect Gilmore's car tax proposal, valuation and assessment of real property, taxation of farm land, and regional cooperation and revenue sharing.

The most popular topics were the Governor-elect's car tax proposal and the EITC. Individual taxpayers and local government representatives all spoke in favor of the proposal. Most of the individuals talked about the burden of the tax and how unfair it is. Local government representatives emphasized the importance of a dollar-for-dollar reimbursement from the state to the localities for the car tax revenues they would no longer collect from their taxpayers. They also requested that there be a revenue growth mechanism in the formula and that there be a dedicated source of funds.

The earned income tax credit was praised as a means to help the working poor and to assist individuals in successfully moving from the welfare roles. The refundable credit was also described as an essential complement to the proposed car tax cut and an investment in low-income workers and their families. All of the EITC speakers urged the commission to support the credit.

Future Meeting

The commission will meet on January 13, 1998, to finalize its recommendations. The resolution (HJR 532, 1997) which continued the commission stated that this is the last year for it to complete its work.