During his campaign freshman Del. Mike Watson, R-James City County, told voters he wanted to rein in the Business, Professional and Occupational Licenses tax.
He took a major step towards that Thursday when a bill he sponsored with Del. Mark Cole, R-Spotsylvania, passed the House of Delegates on an 88-12 vote.
The BPOL tax is levied by localities on businesses'gross receipts. Under Watson's measure the tax would be frozen at 2011 levels. The bill would also limit any locality that does not currently impose BPOL but plan to implement it to taxing a business's profits, not its gross receipts.
Because the BPOL is based on gross receipts, many new businesses operating at a loss still find themselves with a "hefty" tax bill, Watson said.
“Reformation of the BPOL tax to keep Virginia the most business-friendly state in the nation is imperative," Watson said. "Throughout this process, it is important that we consider the financial needs of the localities and ensure we move forward in a way that allows them to continue to raise revenue to accomplish the tasks with which they are charged. This bill works towards that goal."
Watson said he is excited to be moving forward on his campaign agenda just three weeks ito his first session - especially after being warned that at this point in his freshman term he'd still wouldn't be able to find the bathrooms, much less pass legislation important to him.
"I came here in December to figure out where the bathroom was, so I could come up here in January and actually do something," Watson said.
The bill still has a ways to go as it must make it through the Senate and then be signed by the governor, before Watson can claim victory.
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