LEGISLATIVE AND ACTION ALERTS

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Chamber Joins Virginians For Employee Free Choice

Virginia’s long-standing Right-to-Work law has fostered a pro-business environment in Virginia that has consistently made us one of the best states for business in the country. Right-to-Work, however, is at risk of being overturned this year. While Governor Ralph Northam has stated he will not sign legislation repealing Right-to-Work, there is an effort to change Virginia’s law. This is an important issue to Virginia’s business community and employees statewide.

The “Virginians for Employee Free Choice” coalition is a statewide advocacy campaign focused on educating voters on the importance of Virginia’s Right-to-Work law while also activating targeted local support to contact key legislators in the Virginia General Assembly. The coalition is broad, encompassing a number of industries and businesses large and small. We encourage our members to engage in this issue and consider joining the coalition also.

Right-to-Work is critical to Virginia’s economy and workforce. Repealing or weakening our law means:

  • The cost of doing business will go up in Virginia
  • Less investment by companies and fewer jobs for Virginians
  • Damaging Virginia’s long-standing “best for business reputation”

1/24/2020 News Release:

Virginians for Employee Free Choice Coalition Working to Preserve Right-to-Work Law

 
RICHMOND – Virginians for Employee Free Choice announced its formation during Chamber Day at the Capitol, the annual gathering of business leaders and regional chambers of commerce during the General Assembly Session. Virginians for Employee Free Choice is a coalition of businesses and business interests large and small from across the Commonwealth focused on one legislative priority: preserving Virginia’s long-standing Right-to-Work law.
 
Right-to-Work allows employees to go to work and do their job without being forced to join a union. Right-to-Work laws expressly do not prohibit unions from organizing in Virginia; the National Labor Relations Act protects the rights of workers in right-to-work states to unionize. Without Right-to-Work protections, workers would be forced to pay dues, or a fee for not participating, as a condition of employment.
 
“Preserving Virginia’s right-to-work law is the single most important pro-business, job-creating issue this General Assembly Session,” said Barry DuVal, president and CEO of the Virginia Chamber of Commerce. “We have seen major economic development projects for the Commonwealth over the last several years and our right-to-work law has been a vital component in securing these transformational projects. Additionally, this policy has meant that businesses small and large continue to choose Virginia to create jobs. This coalition is focused on ensuring right-to-work is preserved to secure the economic future of the Commonwealth.”
 
Right-to-work laws are crucial to maintaining Virginia’s competitiveness. Virginia re-gained the top state for business by CNBC in 2019, due in part to right-to-work. The law positively impacts the state’s position in major business climate rankings, which use Right-to-Work as a key component when evaluating “best for business” status.  Companies also consider Right-to-Work laws as a major factor in deciding where to locate or expand. Companies will look to other states to set up operations if Virginia’s Right-to-Work law is changed, putting the state at a competitive disadvantage.
 
“Virginia consistently ranks as a top state for business because of our pro-business climate,” said Patrick Gottschalk, former Secretary of Commerce and Trade under then-Governor Tim Kaine and a partner at Williams Mullen. “That pro-business climate includes laws that are hospitable to both businesses and employees, including Virginia’s Right-to-Work law. Right-to-Work is an important pillar of our economic competitiveness. Today, the Commonwealth is winning big economic development projects yielding thousands of good-paying jobs for Virginians because of Right-to-Work.”
 
Right-to-Work is good for both employers and employees. A study conducted by NERA Economic Consulting from 2010 to 2016 found that wages in Right-to-Work states grew 36 percent, while non-Right-to-Work states only saw wages grow 26 percent.
 
In addition to legislation that has been introduced to completely repeal Right-to-Work (HB 153), so-called “fair share” legislation (SB 426) has been advanced which would gut the law in the same way that full repeal would. “Fair share,” also called an agency fee, would result in labor contracts which will require employees who don’t join the union to pay all or some portion of the union’s dues.
 
The fair share law proposed would make Virginia Right-to-Work in name only. Forcing employees to either pay or join the union or lose their jobs undermines the intent of Right-to-Work. This is tantamount to repealing Virginia’s long-standing Right-to-Work law. It would have the same impact on economic development as an outright repeal of Right-to-Work.
 
Right-to-Work has broad support across the country. Twenty-seven states have Right-to-Work laws, and a 2014 Gallup poll found that 71 percent of voters would vote for Right-to-Work laws, including 65 percent of Democrats.
 
To learn more about Virginians for Employee Free Choice and Right-to-Work in Virginia, visit vaemployeechoice.com.

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Chamber Joins VAWEST

Your Board of Directors is aware of the increased flow of proposed legislation in both the State Senate and House that will impact businesses in Shenandoah County and the Commonwealth in 2020.  As such, the Board has approved membership in VA WEST to monitor proposed legislation in order to keep you, our members, informed. In addition, we will monitor legislative releases from the Virginia Chamber of Commerce, and we plan to send routine legislative and action alerts during the legislative session, beginning in January, to ensure our members have an opportunity to be engaged and give perspective. Read the Legislative Agenda here.

Health Care Update from VA Chamber of Commerce President Barry DuVal:

"Over the last two General Assembly sessions the Virginia Chamber has pushed for bipartisan legislation that would give small businesses a new option to provide health care to their employees at an affordable rate. This legislation would allow for small employers to group together. Such an arrangement allows them to pool their risk, which drastically lowers the cost of their health plans when compared to what they're currently offered on the small group market. We would like to thank Senator Monty Mason for carrying legislation this year to make this a possibility. We will continue to work closely with the General Assembly and the administration to get this initiative over the finish line this year so small businesses and their employees can have comprehensive, affordable health care."




County Chamber’s Position on Proposed Meals Tax

The Shenandoah County Chamber Board of Directors and Economic Development Council members have endorsed the County Board of Supervisor’s proposed Meals Tax referendum.

The Meals Tax referendum will state:

Should a meals tax of up to 4% on food and beverages sold by a restaurant be levied in Shenandoah County in order to fund education and public safety capital projects?

The Chamber believes establishing a 4% meals tax in the County will benefit taxpayers by reducing the need to raise taxes on real and personal property, while investing in public safety and education.

The Chamber conducted a poll on the Meals Tax issue during the annual Economic Development Council Breakfast held on September 17th. The poll stated the referendum language with a Yes or No response. The members in attendance voted 129-2 in favor of the meals tax.

The concept of a meals tax is not new.  In fact, Shenandoah County residents currently pay a meals tax on every prepared meal within the town limits of each town in Shenandoah County and in every county along I-81 from the West Virginia state line to Wythe County. If you eat in one of our local restaurants within the Town limits you are currently paying a meals tax. The County’s proposed Meals Tax will NOT be a tax in addition to the town meals tax.

Shenandoah County has simply not approved a meals tax in the past, forgoing an opportunity to collect tax from non-Shenandoah County residents, thereby placing the full tax burden on County residents. We feel that by implementing a meals tax, it will have a positive impact on County revenues and will diversify the County’s tax base, collecting measurable revenue from non-county residents. The County currently may only collect taxes through personal property and real estate. As we all are aware, the costs for our firefighters and police to maintain our safety continues to grow and this tax will help in those efforts in addition to public education costs.

Virginia is a Dillon State, which means the County governing bodies are only allowed tax options approved by the General Assembly or voted on by its citizens through a local referendum. The Towns are governed differently and allowed to implement any tax their governing bodies support, without gaining citizen approval.

The table shown below indicates what surrounding town and county jurisdictions, who have implemented a meals tax, collected in 2017. The maximum meals tax a county can collect is 4% as directed by the General Assembly.

Town of Edinburg, with a 5% meals tax, collected over $57,000

Town of New Market, with a 5% meals tax, collected over $387,000

Town of Strasburg, with a 6% meals tax, collected over $730,000

Town of Toms Brook, with a 5% meals tax, collected over $2,500

Town of Woodstock, with a 6% meals tax, collected over $1.2M

Town of Mt. Jackson, with a 5.5% meals tax, collected over $357,000

Frederick County, with a 4% meals tax, collected over $4.9M

Page County, with a 4% meals tax, collected over $295,000

Warren County, with a 4% meals tax, collected over $940,000

Rockingham County, with a 4% meals tax, collected over $1.2M

The Meals tax is a voluntary consumption tax versus a personal property tax. If you own property in the County you are required to pay the tax, while a meals tax will be paid by those with a preference to eat out. If you don’t eat out, you are not charged the tax.

County residents will be given the opportunity to vote on the issue November 5thWe encourage you to vote Yes on the meals tax to invest in public safety and education while easing our future tax burden.


Meals Tax Background

As you may be aware, the Shenandoah County Chamber Board of Directors and Economic Development Council have been discussing a Meals Tax Referendum with the Board of Supervisors (the “Board”) for the past several months.  On a 5-1 vote, the Board approved a Resolution on August 1, 2019, requesting that a Referendum be held regarding the enactment of a meals tax.  As such, County residents will be given the opportunity to vote on the issue November 5, 2019.  The Board decided to dedicate, or earmark, the new revenue source “to fund public safety and education capital projects”. 

We have pledged our assistance in educating the public regarding the Meals Tax Referendum.  As expected, the news of a County meals tax has created some level of emotion and a fair amount of misinformation.  We are committed to ensuring residents understand the impact of a vote for, or against, the meals tax.

Please see the “Vote Yes” marketing pamphlet below.  We believe the bullets provide a concise and compelling position to support the meals tax.

The concept of a meals tax is not new.  In fact, Shenandoah County residents currently pay a meals tax on every prepared meal within the town limits of each town in Shenandoah County and in every county along I-81 from the West Virginia state line to Wythe County.  Shenandoah County has simply not approved one in the past, forgoing an opportunity to collect tax from non-Shenandoah County residents, thereby placing the full tax burden on County residents.  At this point, we do not know the positive impact on County revenues by implementing a meals tax.  However, we are aware of the impact of meals tax revenues (as budgeted for FY2020) on local jurisdictions.

  • ·         Frederick County-$6,100,000
  • ·         Rockingham County-$1,300,000
  • ·         Towns within Shenandoah County-$3,257,253

Many will debate the use of funds, the size of government and other issues; however, we believe the topic can be simplified with two questions.  When Shenandoah County needs additional revenue sources to fund operations (whatever may be needed-public safety, schools or economic development, for example), do the residents want to pay 100% of the increase via real estate and personal property taxes?  Or, would residents prefer it be measurably subsidized by non-County residents in the form of a County Meals Tax?

We believe a “yes” vote on the Meals Tax Referendum diversifies the County’s tax base and provides tax relief to County taxpayers.

Sincerely,

Dennis A. Dysart

Chairman, Shenandoah County Chamber Board of Directors

Chairman, EDC

ABOUT THE CHAMBER

Your Voice for Business Success! Fostering economic growth and prosperity in our Community by promoting business through education, networking, and advocacy.

CONTACTS

director@shenandoahcountychamber.com
540-459-2542
103 South Main Street
Woodstock, VA 22664

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