Comments on: DEVELOPMENT NEWS: Economy Bites Restaurants http://fallschurchtimes.com/14998/development-news-economy-bites-restaurants/ Falls Church City's Online Community Newspaper Wed, 08 Feb 2012 12:31:06 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Andy Rankin (Falls Church) http://fallschurchtimes.com/14998/development-news-economy-bites-restaurants/comment-page-1/#comment-6847 Andy Rankin (Falls Church) Fri, 08 Jan 2010 04:24:28 +0000 http://fallschurchtimes.com/?p=14998#comment-6847 I think, but I'm not sure, that commercial buildings are assessed based on the revenue generated. If that's the case, the property is assessed at a higher value if more of the units are rented. So, it is better for that space to be rented even if it's not occupied. It may be that the landlord (in this case, Tax Analysts) also pays BPOL on the rent they receive. BPOL is based on gross receipts. I'm also not sure about that - but again it would mean than a rented space, even when empty, generates a little more tax revenue. But yes, if they actually put a business in there it would generate sales tax and also BPOL tax from the business. It would be interesting to know how those different taxes compare for an average restaurant in the City. I think, but I’m not sure, that commercial buildings are assessed based on the revenue generated. If that’s the case, the property is assessed at a higher value if more of the units are rented. So, it is better for that space to be rented even if it’s not occupied.

It may be that the landlord (in this case, Tax Analysts) also pays BPOL on the rent they receive. BPOL is based on gross receipts. I’m also not sure about that – but again it would mean than a rented space, even when empty, generates a little more tax revenue.

But yes, if they actually put a business in there it would generate sales tax and also BPOL tax from the business.

It would be interesting to know how those different taxes compare for an average restaurant in the City.

]]> By: Gordon Theisz http://fallschurchtimes.com/14998/development-news-economy-bites-restaurants/comment-page-1/#comment-6842 Gordon Theisz Thu, 07 Jan 2010 22:27:08 +0000 http://fallschurchtimes.com/?p=14998#comment-6842 On the ever-optomistic EDO stating that the Pizzeria Orso lease-holders are paying the rent: This makes me wonder which brings in more tax revenue - space rented, or business operating? Is there a tax detriment when the space is not rented, or does the city collect tax on the value of the property? Seems to me commercial property can bring in three sources of revenue: 1. Property tax on value of the land/improvements 2. Revenue based tax on rents paid/profits of the holding company 3. Sales tax/revenue tax paid by the leaseholder/occupying business So which is most desirable? On the ever-optomistic EDO stating that the Pizzeria Orso lease-holders are paying the rent: This makes me wonder which brings in more tax revenue – space rented, or business operating? Is there a tax detriment when the space is not rented, or does the city collect tax on the value of the property? Seems to me commercial property can bring in three sources of revenue:
1. Property tax on value of the land/improvements
2. Revenue based tax on rents paid/profits of the holding company
3. Sales tax/revenue tax paid by the leaseholder/occupying business

So which is most desirable?

]]> By: John D. Lawrence, City of Falls Church http://fallschurchtimes.com/14998/development-news-economy-bites-restaurants/comment-page-1/#comment-6834 John D. Lawrence, City of Falls Church Thu, 07 Jan 2010 17:40:39 +0000 http://fallschurchtimes.com/?p=14998#comment-6834 Just a correction on the BB&T Chicken Out story. The EDO report made it sound like things were final, but, frankly, they're still in flux. Late last year, the PC did vote to recommend that the BZA deny the Special Use Permit based on concerns about ADA parking spaces, congestion on Route 7, and shopping center circulation. However, BB&T has delayed moving forward to the BZA with their request as they work to address the PC's concerns. We're told it may still come back to us. Just a correction on the BB&T Chicken Out story. The EDO report made it sound like things were final, but, frankly, they’re still in flux. Late last year, the PC did vote to recommend that the BZA deny the Special Use Permit based on concerns about ADA parking spaces, congestion on Route 7, and shopping center circulation. However, BB&T has delayed moving forward to the BZA with their request as they work to address the PC’s concerns. We’re told it may still come back to us.

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