Dumfries lowers BPOL taxes. Increased hotel fee to recoup lost revenue.

It’s going to cost more to stay at a hotel in the Town of Dumfries.

Town leaders this week amended a transient room rental tax provision in the town code that allows the town to collect a room fee on top of the hotel tax already levied and charged by hotels.

The additional fee was raised from $1 a room to $5 per room, per night. The fee is charged when guests check out of their hotels.

The increased fee comes as town leaders moved to reduce the town’s Business and Professional Licensing tax, also known as BPOL, by 25%. It’s a tax levied on business’ gross receipts.

Town documents note the changes in BPOL tax rates:

Contractors, subcontractors and persons contracting or constructing for their own account for sale assessment of tax.
Except where exempted by law, every person engaged in contracting, subcontracting, and persons constructing for their own account for sale shall be assessed by the town treasurer and pay for such privilege, a license tax of $30.00 or $0.092 $0.069 per $100.00 of gross receipts, whichever is greater.

Financial services—Assessment of tax. Every person engaged in the business of providing financial services shall be assessed by the town treasurer and pay for such privilege, a license tax of $30.00 or $0.29 $0.22 per $100.00 of gross receipts earned, whichever is greater.

Repair, personal and business services and other businesses not taxed or exempted—Assessment of tax.
Every person engaged in a repair, personal or business service or any other business or occupation, trade, profession, vocation, calling or activity not specifically listed and taxed by or excepted from this article shall be assessed by the town treasurer and pay for such privilege, a license tax of $30.00 or $0.18 $0.135 per $100.00 of gross receipts, whichever is greater

Every person engaged in the business of providing real estate and professional services shall be assessed by the town treasurer and pay for such privilege, a license tax of $30.00 or $0.29 $0.22 per $100.00 of gross receipts earned, whichever is greater.

Every person engaged in a repair, personal or business service or any other business or occupation, trade, profession, vocation, calling or activity not specifically listed and taxed by or excepted from this article shall be assessed by the town treasurer and pay for such privilege, a license tax of $30.00 or $0.18 $0.135 per $100.00 of gross receipts, whichever is greater.

Every retail merchant or person selling at retail shall be assessed by the town treasurer and pay for such privilege, a license tax of $30.00 or $0.125 $0.094 per $100.00 of gross receipts, whichever is greater.

Every person conducting or engaging in the business of wholesale sales as defined by this article shall be assessed by the town treasurer and pay a license tax for such privilege of $0.020 $0.015 on each $100.00 of purchases.

Town leaders for years have worked to reduce the BPOL tax. It’s also been a priority of the Prince William Chamber of Commerce, which has regularly lobbied the Prince William County Board of Supervisors to lower or its BPOL tax.

With the new hotel room fee in place, town leaders expect to make up all of the lost revenue incurred with the reduction of the BPOL tax.

Public hearings ware held for the hotel fee increase and lowered BPOL tax rates. No one spoke.

Dumfries has two hotels — A Super 8 and a Sleep In. Both are located at the intersection of Routes 1 and 234.