STAFFORD — Come spring, county leaders will modify the budget process and set the Merchant’s Capital Tax rate, similar to the way the Board of Supervisors sets its Real Estate tax rate.
Supervisors on Oct. 2 approved an ordinance to provide a separate classification of certain Merchants Capital Tax for wholesalers, presented by Stafford Economic Development Director John Holden.
The move is designed to lure e-commerce warehouse operators like Amazon, Inc. to land along Centerport Parkway and Interstate 95, near the county’s airport.
“We’re in an area where the market is asking for these types of facilities,” Holden said.
According to Holden, warehouse and distribution centers are one of Stafford’s targeted sectors. They have a potential to target for e-commerce warehouse and distribution centers.
“I think this provides a clear message to distribution centers in the e-commerce arena that Stafford County is serious,” Holden said.
An e-commerce center isn’t your typical warehouse, but rather a highly automated, tooled facilities in which many online companies store products and distribute the products throughout the region.
“E-commerce is a trend in this country,” said George Washington District Supervisor Tom Coen. “These data centers would be very important.”
According to Holden, the distribution centers would bring in “additional quality jobs.” The types of jobs would include people running automated machines and other informational tools.
Another bonus to these e-commerce centers is a potentially positive tax net revenue that the county would bring in from companies that used these centers.
“We did an analysis with the Commissioner of Revenue, based on one particular interest we looked at the development of a $38 million e-commerce center,” Holden said.
The net revenue total would produce an estimated $275,000, according to Holden. The current Merchant’s Capital tax rate is 50 cents for every $100 of stock on hand. The tax netted the county $1.1 million in 2017, according to county budget documents.
