Two private country clubs in Virginia will receive good news as relief will be provided by the decision made by the Virginia General Assembly regarding local property tax bills. According to critics, the move is clearly in favor of the rich while it will serve as a bad precedent in case there are disputes in the future about taxes. This will also give a bad idea to those businesses that started their application for a Virginia Tax ID as they might expect to receive the same benefits.
Lawmakers are now on the process of approving a legislation that will require Arlington County to reduce their tax bills for two country clubs – Army Navy Country Club and Washington Golf and Country Club. The initiation fees for both of these are higher compared to the salary of majority of Virginians annually. The bill was already approved by the House with support from bipartisan and it has also been approved by the Senate Finance Committee.
According to the legislation’s supporters, the taxes imposed on the clubs are not fair because they are treated the same way as subdivisions with homes rather than golf courses with open land spaces. In comparison to various clubs located in Northern Virginia, these two country clubs are paying the highest taxes.
Tim Hugo who is a Republican said that they are dealing a matter of equity. He added that the annual property tax bills of the two country clubs when combined is already the same as the combined taxes of the top 11 country clubs with the highest rate in Northern Virginia. Washington Golf pays $870,000 yearly while Army Navy pays $1.5 million yearly.
The clubs’ lobbyists decided to seek help from the legislature after years of request from the county which resulted to nowhere.
This gives hope to business who are beginning their application for a Virginia Tax ID because they felt that they will be able to protect their company in case they gets unjust tax rating from the county they are based in. The legislations’ opponents, on the other hand, are not happy because they believe that the matter of local tax dispute should be handled by county.