HD13 - Report of the Joint Subcommittee to Study the Service Charges that are Imposed on Certain Real Property

  • Published: 1981
  • Author: Joint Subcommittee to Study the Service Charges that are Imposed on Certain Real Property
  • Enabling Authority: House Joint Resolution 84 (Regular Session, 1980)

Executive Summary:

House Joint Resolution No. 84 (Appendix I) was enacted during the 1980 Session of the General .Assembly to serve a two-fold purpose. The original purpose for introduction was prompted by the fact that a number of localities. presently having the service charge and containing large blocks of State-owned property within their boundaries, were of the opinion that the maximum rate leviable under the service charge statute was not sufficient to cover the services provided to the Commonwealth by such localities The second purpose for passage came to light after the resolution's introduction and while the budget committees were putting together the appropriations bill for the 1980-82 biennium. During the budget process, it became known that a county and a city had enacted ordinances to levy the service charge on State property without having given any previous notice to the State. The ordinance would result in the necessity for thousands of dollars in additional new money to be included in the biennial budget which had not been  previously covered in the Governor's budget presentation to the General Assembly.

There were other problems involved also. One locality which enacted the charge contained only a State recreational park and National Guard military installation. It was, the money committees determined, extremely questionable as to the extent of the services actually provided to the Commonwealth by that particular locality. The result of these questions prompted the addition of language to the appropriation act contained in § 4-9.14 of Chapter 760 (Appendix II) which in essence placed a moratorium on the local service charge until all budgetary problems could be examined more thoroughly. House Joint Resolution No. 84, therefore, was also used as a vehicle for resolving this complex issue.

The Joint Subcommittee met numerous times during the 1980 interim with Delegate L. Cleaves Manning serving as chairman.