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Richmond, Virginia, like a lot of other cities in the US, is under a whole lot of money pressure. So, like many other cities, it seeks to tax its citizenry in order to make up for their failure to balance its budget. However, Richmond went a little too far. What were they thinking? That Chevron had deep pockets, and were unpopular, so putting a "tax Chevron" measure on the ballot would put some cash in their pocket? As it turns out, Richmond broke the law in two ways, when they passed that bill.
1) Only the state can tax Chevron, based on the value of the materials used in its refinery. That makes sense. This is equivalent to a sales tax.
2) Chevron does not receive services from the City of Richmond commensurate with the tax the City ordered them to pay.
If Richmond wants out of its fiscal woes, there is an easy way to do it. Stop spending so much. But I understand why they don't. They are in a state that borders Washington DC, and you can't help but believe that Washington is rubbing off on them, just a little. LOL.
Article is here.
1) Only the state can tax Chevron, based on the value of the materials used in its refinery. That makes sense. This is equivalent to a sales tax.
2) Chevron does not receive services from the City of Richmond commensurate with the tax the City ordered them to pay.
If Richmond wants out of its fiscal woes, there is an easy way to do it. Stop spending so much. But I understand why they don't. They are in a state that borders Washington DC, and you can't help but believe that Washington is rubbing off on them, just a little. LOL.
Article is here.
