Pittsylvania County seeks tax hike to cover bond

By: John Crane | GoDanRiver
Published: October 09, 2008

Pittsylvania County plans to pursue a 1-percent sales tax increase to help pay for the bond that will be used to renovate the county’s four high schools.

The Board of Supervisors agreed Monday night to request help from Danville to seek approval from the General Assembly. Chatham-Blairs Supervisor Hank Davis proposed the idea as a way to help cover the $70 million high school bond passed by county voters in November.

“We’re hoping if Danville will ask for the same 1 percent, we’ll get it,” Davis said Wednesday.

He said the increase would not target particular residents, but would affect everyone equally with visitors spending money in the county and helping to foot the bill. The proposal would require state approval. Virginia’s sales tax rate is 5 percent.

Lyle Lacy, interim city manager for Danville, said the county has not contacted him on the issue and declined to comment further.

Delegate Danny Marshall, R-Danville, said he would support the idea but a countywide vote would have to be a condition. The state would need to approve the county putting the question before voters. Marshall also said dropping the tax increase after the bond is paid off would be a good idea.

Coy Harville, chairman of the Board of Supervisors, said he supports the tax increase, but said the General Assembly would not support it. Rising costs and the $700 billion Wall Street bailout make this a bad moment for a sales tax hike, he said.

“I don’t think the General Assembly will go with a tax increase,” Harville said. “Nobody wants to hear about a tax increase at this time.”

Harville, however, said he wasn’t sure whether the county would ask Danville to raise its rate, but said the county will seek the city’s support for the idea.

The county included a 3-cent rate increase on its real-estate tax — from 50 cents of $100 in assessed value to 53 cents — in its 2008-09 budget to go toward the high school bond, and officials expect another 18-cent increase for the 2009-2010 fiscal year.

County officials expect construction on the four high schools to begin in December. The renovations at Tunstall, Chatham, Gretna and Dan River high schools will take place in several phases over about two years.

Contact John R. Crane at jcrane@registerbee.com or (434) 791-7987.