NFIB

NFIB/Virginia Legislative Update - Dec. 8
12/08/2006

Save the Date: Tuesday, Jan. 16
Small-Business Day at the Capitol in Richmond

• Meet your legislators
• "10 ways to find more affordable health care"
• Eminent domain and more

Workers' comp rates mostly down
Workers' compensation premiums for most Virginians will come down in 2007. The State Corporation Commission approved new revisions that will take affect in April. Premiums in the industrial category will see an average drop of 7.9 percent for the voluntary market; assigned risk will fall by 8.2 percent. Most businesses fall into the industrial category. Some specialized markets such as mining companies and longshoremen have their own categories.

Unemployment insurance rates slightly up
The Unemployment Insurance Commission has announced UI tax rates for 2007. The new tax rate is 1.36 percent, which is up from last year's 1.05 percent. The new rate will be distributed at follows -- 1.16 percent for the Administrative Fund tax, 0.2 percent for the Uninsured Fund and no tax for the Second Injury Fund. The commission is authorized to tax up to 3 percent.

Virginia communications taxes to change in 2007
The Virginia Tax Department has released new communications taxes that every business owner and individual must pay come Jan. 1, 2007. Mostly, there is good news! A flat tax of 5 percent will replace the following phone-bill taxes:

• Local consumer utility tax on landline and wireless telephone service
• Local E-911 tax on landline telephone service
• Virginia Relay Center assessment on landline telephone service
• A portion of the local Business, Professional and Occupational License tax assessed on public service companies by certain localities that impose the tax at a rate higher than 0.5 percent percent
• Local video programming excise tax on cable television services
• Local consumer utility tax on cable television services

It is estimated the average customer, both residential and commercial, should save money with the new process. Those businesses with higher call volumes may experience higher taxes.

Learn more about communications taxes on the state Web site.

Please vote your 2007 NFIB/Virginia Member Ballot
Even though Virginia’s legislative session is scheduled to last 45 days, thousands of issues will be addressed, including:

• Transportation plans and possible related taxes, such as a 30 percent increase in commercial property tax, tolls and gas tax 
• Government agencies’ ability to increase or decrease their eminent domain powers
• Health-insurance mandates
• The effect of hiring illegal immigrants

You can provide input on these and other key issues before session starts simply by voting the NFIB/Virginia Member Ballot. This year, there are more convenient ways than ever for you to submit your Ballot. You can respond via mail, fax or online at www.NFIB.com/ballot.

If you haven’t completed this year's State Ballot, please do so as soon as possible. Your input is the key to NFIB being your Small-Business Voice.

SBA releases 2005 data
The Small Business Administration recently submitted its annual report, The Small Business Economy, to President Bush. The report documents the state of small business in 2005. Chapters and appendices provide an in-depth examination of key issues facing small business.

Chapter 2 examines small-business financing in 2005. It finds business borrowing to be at an all-time high, and that commercial banks expanded lending and eased lending standards in response to competition from non- bank lenders. Chapter 4 details women's contribution to business, using multiple data sources. Latest federal data show that women owned 6.5 million, or 28.2 percent, of non-farm firms. These firms employed 7.1 million workers with $173.7 billion in annual payroll. Chapter 6 looks at the vital role small businesses can play in local and regional economic development.

You can order copies of the report, as well as past annual versions, by calling the Office of Advocacy at (202) 205-6533. 

For more information, visit the Office of Advocacy Web site. 

NFIB’s Research Foundation also offers valuable small-business information, including the monthly Small-Business Economic Trends.

Learn more from the NFIB Research Foundation.

Government privatizes jobs
Each year, the Secretary of the Commonwealth must report to the governor the number of government jobs that were privatized. Here are some 2006 numbers:

• 12 positions from the Department of Human Resource Management
• Seven positions from the Department of Corrections
• Five positions from the Virginia Port Authority
• 567 positions from Virginia Information Technologies

Sincerely,

Gordon Dixon
NFIB/Virginia State Director
gordon.dixon@nfib.org