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South Hill proposes to cut cigarette tax in half

SoVaNow.com / May 17, 2017


In the wake of an uproar over plans to impose a 30-cent-per-pack tax on cigarettes, South Hill Town Council is setting a new public hearing to consider a different plan to raise revenue for the town budget.

The new proposal, unveiled Tuesday, calls for lowering the recommended cigarette tax from 30 cents to 15 cents a pack, and raising the town’s personal property rate from $1.05 per $100 in value to $1.50 per $100.

The revenue will help to support a general fund budget of slightly less than $14.3 million, a sharp increase from the current $11.9 million budget. The town must enact the new budget by June 30, the end of the current budget year.

The increase in spending is driven by street projects that are needed with the construction of the new VCU Health Community Memorial Hospital. The budget is also being driven higher by a request for additional funding for the town police department.

The hearing to consider the revised tax rates is set for Tuesday, May 30 at 7 p.m. at Town Hall. Copies of the tax ordinance and budget are available at Town Hall or by calling 434-447-3191.

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