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Changes may be looming for Rockbridge County’s admissions tax, which was raised to 10 percent on Jan. 1 – the third and final staged increase over a threeyear period.
The tax on admissions to county attractions was imposed at a rate of 3 percent in 2022 with scheduled increases to 6 percent in 2023 and 10 percent in 2024. The amount of the tax is capped at $3 per admission.
The supervisors on Monday discussed tweaking the tax – reducing the rate from 10 to 6 percent and eliminating the cap on the dollar-amount. The reason for a reduction in the rate would be to bring it in line with that of other jurisdictions in the region. Removing the cap on the dollar-amount would be a response to at least one attraction allowing multiple admissions for one individual admission fee.
The tax, at a rate of 3 percent, generated revenues of $165,566 between Feb. 1 and Dec. 31, 2022. In 2023, the 6 percent tax generated revenues of $391,223 for the calendar year. In January of 2024, the 10 percent tax brought in $14,225.
The consensus of the supervisors was to have county staff further discuss the issue with the finance committee and return with a recommendation at the supervisors’ next regular meeting on March 11. If changes to the tax are recommended, the changes would be advertised for a public hearing on March 25. -Any changes made to the admissions tax would have an impact on budget deliberations that are already underway for the next fiscal year. If changes lead to a projected reduction in revenues, other tax rates might have to be raised or planned expenditures reduced.
At a budget work session prior to Monday’s regular meeting, Ashton Harrison, the county’s director of fiscal services, said the current draft budget for fiscal year 2025 has a gap of $876,125 between projected revenues and proposed expenditures. The gap is actually understated because the draft doesn’t include an increase for the local share of the costs for the schools, pay increases for county employees and staffing increases that are proposed.
The administration is requesting three new fire and rescue captain positions at a cost of $326,624 and two additional parks and recreation crew members at a cost of $119,003. The budget draft also doesn’t include funding for a new HVAC unit for Natural Bridge Elementary School that has a cost of $3.3 million, though the project may be eligible for energy credits of up to 30 percent.
These issues were discussed at the budget work session. The supervisors are to hold a joint work session with the county School Board this Thursday, Feb. 29, at 5 p.m., at the Effinger school administration offices.
