Richmond airport’s gross receipts tax – abuse of power at its worst

by John Bona

What happens when the government and the private sector are in the same business? Bad things.

I am President and CEO of Park ‘N Go, a private business that provides parking and shuttle service to the Richmond Airport. We are located on private property about a quarter mile from the Airport. We’re in the middle of a big dispute with the Richmond Airport over their decision to tax us at a higher rate than other businesses whose shuttles provide the same service. The Richmond Airport doesn’t like competition for parking customers, so it has decided to use its taxing authority to try to put us out of business. We object to this unfair tax and have a legislative fight pending in this year’s General Assembly Session to fix it.

Here’s the background. The Richmond Airport charges most commercial shuttles a per trip fee for permission to enter airport property and drop off passengers. They charge Hotel Shuttles and Shared Van Rides a fee of $2.60 per trip. Taxis pay a $2.00 per trip fee. When it comes to Park ‘N Go, however, a private company located off the airport property, the Richmond Airport decides to charge an 8% gross receipts tax on the company’s annual revenues. In 2013, the equivalent per trip fee for Park ‘N Go amounted to $5.57 per trip! Park ‘N Go asked the Richmond Airport that it be taxed the way others with the same shuttles are taxed, but the Richmond Airport continues to require Park ‘N Go to pay the 8% Gross Receipts Tax or its shuttles cannot enter the airport property.

We do not object to paying the same per trip fee to access the airport. We pay real estate taxes, BPOL, and property taxes just like other businesses. However, we object to being singled out for an 8% gross receipts tax when other businesses with shuttles pay a much lower per trip fee.

This conduct is governmental abuse of power at its worst! The airport has every incentive to try to put this parking competitor out of business. It is using its unchecked monopolistic taxing authority to single out a private business to pay higher taxes. They don’t like the fact that Park ‘N Go offers citizens parking at $5.99 per day, while Richmond Airport charges $12 per day. And I thought this was America, or at least that Virginia was “Open for Business”. Not so much if you compete with the airport for parking customers.

A bill has been introduced this year to force the Richmond airport to charge shuttles evenly. The legislation, HB 1889, has been introduced by Delegate Chris Jones, who is Chairman of the Appropriations Committee, and it is co-patroned by Senator Steve Newman who is Chairman of the Senate Transportation Committee. HB 1889 would prohibit Richmond Airport’s use of a gross receipts tax on ground transportation providers, and it would require that all such providers be charged the same. We are so thankful that these legislators have the courage to stand up to the Richmond Airport.

Equal taxation sounds reasonable, right? Well, the Richmond Airport doesn’t think so. They think they should be able to single out and tax private businesses however they feel like it. They don’t like a business offering cheaper parking alternatives, and the Richmond Airport wants to put them out of business. There is nothing to stop them unless the General Assembly does something about it. Because the airport currently has unchecked monopolistic taxing authority, HB 1889 is the only solution.

Please help shed light on this Abuse of Governmental Power at its worst. The House Transportation Committee members need to hear from people who favor fair and even taxation. If the bill doesn’t pass, your business could be next, particularly if the Richmond Airport decides you compete with them. Here is a link to the committee members so that citizens can contact their delegates to show their support of this important legislation. We hope there are many more legislators who find this tax inequity distasteful and in need of correction.

Please support HB 1889!

John Bona is President and CEO of Park ‘N Go, a parking company that has been providing parking services for over 25 years, including service at Richmond International Airport. 

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