Supervisors Table Cigarette Tax Proposal Over Potential $12 Monthly Tax Burden on Pack-a-day Smokers

Following a work session staff presentation of two proposed Information Technology (IT) services – Social Media Archiving Subscription services (ArchiveSocial) and FOIA Management Software (NextRequest) – the Warren County Board of Supervisors convened its regular meeting of Tuesday, August 6. Absent was North River District Supervisor Richard Jamieson. On the staff side, County Administrator Ed Daley was absent, we were told due to illness.

Among Public Hearings of interest on the Action Agenda were an Ordinance to impose a “Cigarette” Tax; a correction on the numbers previously forwarded by the board for an increase in the Shenandoah Shores residential water rates in Fiscal Year 2024/25; approval of the sale of a vacant 2.9-acre parcel on Criser Road to the Bishop of the Catholic Diocese of Arlington, Virginia, of which as we recall St. John’s Catholic Church in Front Royal is a part of, for the current assessed value of $67,400.

Also before the board was a Conditional Use Permit application by a group of people seeking to establish a “Home Enterprise” bakery delivery business at 103 Demel Court in the Skyland Estates subdivision; and renewal of the County’s lease with the Shenandoah Area Agency on Aging for operation of the Senior Center here.

The short version is that the proposed Cigarette Tax, which it was explained applies to all paper-rolled nicotine-based products including cigars, was tabled for further discussion; the corrected Shenandoah Shores residential water rates were approved; the Criser Road property sale to the Arlington Archdiocese was approved as presented; the bakery Home Enterprise CUP was approved with conditions as recommended by the planning commission and staff; and the lease renewal with the Shenandoah Area Agency on Aging was tabled for further discussion on the recommendation of staff.

About that nicotine habit tax

During discussion of the cigarette tax (introduced at the 1:16:18 mark of linked video) Finance Director Alisa Scott explained it would be imposed at a rate of two cents per “cigarette” in purchased packs. Asked about revenue projections, Scott said staff wasn’t comfortable with trying to pin down a specific number, but based on regional revenue streams estimated potential County revenue of a minimum of $200,000, up to the potential of $600,000.

Finance Director Alisa Scott, and a partially obscured to Scott’s right Commissioner of the Revenue Sherry Sours, present implications of the imposition of a nicotine-based “Cigarette” Tax on the County’s tax revenue stream. A rough guess from the finance director, $200,000 to $600,000 from what is often referred to as a “Luxury” tax, being that smoking is a non-essential personal habit. Or as “Jay” Butler playfully termed it, a “Sin” tax. Royal Examiner Photos Roger Bianchini

Board Vice-Chairman “Jay” Butler noted that he had quit a steady smoking habit, but still enjoyed the occasional cigar. He said he wouldn’t mind paying the proposed tax for what’s left of his smoking habit. “I’m very much behind this tax. And I don’t mean to throw rocks at cigarettes or anything, but I call it a sin tax. And so people who want to smoke cigarettes, that’s fine, they can pay that tax. Hopefully that will give us the opportunity to decrease taxes in other areas. That’s what I’m looking for,” Butler told his colleagues.

“I’ll just say I’m concerned about this tax hitting the lower economic class,” Shenandoah District Supervisor John Stanmeyer observed after no one responded to Chairman Cheryl Cullers convening the public hearing following Butler’s comments. Stanmeyer elaborated on his concerns, adding, “Including people who are medically uninsured or have lower incomes or no jobs whatsoever, no high school diploma maybe, unable to work, mental illness,” adding factors related to military service and veterans issues.

“It really does seem to cut that way if you look at the demographics,” Stanmeyer asserted of his research perspective on a socio-economic-psychological profile of habit smokers. Citing a pack a day as a measure of the typical habitual smoker, Stanmeyer estimated the suggested two-cent per rolled, nicotine smoke equating to a monthly tax bill of $12 dollars, an amount perhaps economically crippling to the under-educated, un-medically insured, borderline mentally ill average chain smoker he described.

He pointed to the board’s earlier lowering of trash collection fees in town from an initially proposed $16 dollars, down to $8 dollars, as a potential guideline on reducing the cigarette tax proposal on the table. “I’m just pointing out that this falls in that range that caused us some consternation before in putting a burden on people. And I want to make sure we’re thinking about that.”

John Stanmeyer, far left, and “Jay” Butler to Stanmeyer’s left, weren’t seeing eye to eye on the imposition of a Cigarette Tax to increase County revenue without additional hikes to Real Estate or Personal Property taxes to cover County services cost increases. As Stanmeyer suggested, should the county’s elected officials reconsider a 2-cent per rolled nicotine-based smoke tax over a $12-a-month hit on a pack-a-day smoker’s wallet?

“I understand exactly where you’re coming from,” Butler replied to Stanmeyer’s concerns, adding a personal perspective. “I was smoking cigars, smoking cigarettes. It’s one of those things that if you put your mind to it, I smoked for 13 years back in the ’70s and ’80s, and I put my mind to it and I quit smoking. I smoke cigars on occasion,” Butler admitted, adding, “But it’s one of those things where I look at it as, well, if it’s going to effect somebody that much – they don’t need to smoke. And that’s why I’m for this tax. If they’re that so much set on smoking, well by golly they can pay that tax too,” Butler concluded.

Asked if she had anything to add to the discussion by Chairman Cullers, Fork District Supervisor Vicky Cook said, “I’m caught in between,” leading Cullers to reply, “I am too.” After a brief summary of both supervisors dislike of raising taxes in general versus the County’s need for additional revenue to meet its services-to-citizens responsibilities, Cook suggested tabling the matter for additional discussion (1:24:05 video mark).

And after some additional discussion, on Cook’s motion, seconded by Butler, the board voted 4-0 to table the matter. It will come back to the board for consideration at the August 20th meeting.

Home Bakery – No negative ‘feedback’

Called to the podium to comment on their CUP application for the Home Enterprise bakery delivery business, applicant Kyler Yancey said he and co-applicants Lindsey Wiley, Elmer Smith, and Alicia Fridgen, had reached out to neighbors about their plan, and had received no negative feedback (writer’s note: is that a pun? If so, it’s intended). The board thanked the applicants for being proactive with their neighbors. During his summary of the application, Zoning Administrator Chase Lenz explained that the Home Enterprise bakery proposal would have been by right had the use been limited to the main residential structure. However, the CUP was required as an out building would be used for a portion of the business operation.

Zoning Administrator Chase Lenz explained that if the applicants weren’t using an out building in their proposed Home Enterprise bakery delivery business it would be a by-right use of the property as zoned. Below, applicant Kyler Yancey told the board his group had contacted neighbors about their proposed bakery delivery business and received no negative feedback.

On a motion by Cook, second by Stanmeyer, the board followed the planning commission unanimous recommendation of approval (minus one absent), with six listed conditions, including that the business be delivery only to limit additional traffic in the Skyland Estates subdivision.

Shores Water Rate correction

The corrected Shenandoah Shores Sanitary District Water Rate Increase was approved by a 4-0 vote on a motion by Stanmeyer, second by Cook. The staff summary, noting a clerical error at fault, presented by Public Works Director Mike Berry indicated the corrected rates from what the board approved on May 21st at:

1. For all consumption and use up to 16,000 gallons per quarter as metered at the individual connection: $120.12 (from $94.06);
2. For all consumption and use of at least 16,001 gallons but not exceeding 26,000 gallons per quarter as metered at the individual connection there shall be a surcharge of $.0091 per gallon consumed and used (from $.00706);
3. For all consumption and use above 26,001 gallons per quarter as metered at the individual connection there shall be a surcharge of $.010 (from $.086)

Other Business

A Closed Session originally scheduled was deleted from the evening’s meeting agenda, possibly because of staff absence due to illness.

Near the meeting’s outset the board heard from five Public Comments speakers, four expressing opposition and/or concern about the proposed Sheriff’s Office training and shooting range. Two of those speakers, John Swenson and David Brotman, suggested consideration of private land options or an indoor facility, either constructed or purchased, that could contain much of the sound generated by firing range practice, and likely assure no stray rounds leaving the vicinity.

The T-shirts say it all: John Jenkins, the lead-off anti-Sheriff’s Office shooting and training range site Public Comments speaker, makes his opinion clear – to those behind him. Below, Anne Miranda’s T-shirt gopher “Happy” carries a message too (41:43 video mark).

A fifth speaker, Anne Miranda, reiterated her previously stated opposition to any Property Tax hikes, and left the board with an anti-tax hike Haiku based on her T-shirt cartoon character (41:43 video mark).

At a 6 p.m. work session, staff presented two IT-related contractual arrangements for the board to consider approval of at a future meeting. They were:

1. Demonstration – Social Media Archiving Subscription services (ArchiveSocial) – Jane Meadows, Deputy County Administrator
2. Demonstration – FOIA Management Software (NextRequest) through CivicPlus – Jane Meadows, Deputy County Administrator

See all the board’s discussion, votes, and staff presentations in the County video.