Ed. — The Independent News asked candidates for Virginia Beach revenue commissioner to answer questions about issues. These answers generally are not edited by the newspaper, aside from basic formatting and some simple copy editing. Candidates are listed in ballot order. Please send any feedback or letters to letters@princessanneindy.com or reach the editor via jhd@princessanneindy.com.
BEN LOYOLA JR.
Residence: Virginia Beach
Occupation: President, Loyola Enterprises
Education/Military Service: US Naval Academy 1983, BS Marine Engineering, Commissioned Officer US Navy, 1983. Naval Flight Officer for A-6 Intruder, CO of the NR Commander Naval Forces South, Roosevelt Roads Naval Base, Puerto Rico, Retired US Navy Captain after 30 years of service.
Key endorsements: Mayor Bobby Dyer, Del. Jason Miyares and Sheriff Ken Stolle
Website: www.benloyola.com
Phone: (757) 718-0699
Email: ben@benloyola.com
Social Media: @LoyolaForCommissioner on Facebook
What are your specific qualifications for this office? I am a veteran and I know firsthand the challenges of starting a business in Virginia Beach like many veterans have tried to do. I relate to Virginia Beach taxpayers and businesses much better than a decades-long bureaucrat who has gone unopposed since the turn of the century. I am a small business owner.
I understand the insanity of paying gross receipt taxes to fund the War of 1812 that was won two centuries ago. I know the craziness of property taxes where every desk, stapler and computer must be reported annually for tax assessments under threats of audits.
My community involvement is extensive, including President of the Indian River Plantation Community Association, Commissioner of the Virginia Beach Arts & Humanities Commission, Vice-Chair and Board Member of the Commonwealth of Virginia Public School Authority, Board Member of Old Dominion University Virginia Modeling Analysis & Simulation Center (VMASC), Board Member of the Emergency Management Training, Analysis & Simulation Center (EMTASC), Board Member of the Virginia Ballet.
My trade is engineering, modeling and simulation, and I am an expert with numbers, analysis and protections. These skills would serve the citizens of Virginia Beach well. Our Commissioner of the Revenue should be focused on the best interests of taxpayers and businesses, and not the endorsement center for far-left political candidates.
My family fled Communist Cuba to find freedom in America. I’ve worn our nation’s uniform and I’ve lived the American Dream. I will return service, transparency and accountability to the Commissioner’s office.
Please describe your management or administrative experience. I am the Founder and President of Loyola Enterprises Inc., an engineering services contracting firm headquartered in Virginia Beach. Loyola Enterprises Inc. has become a leading engineering services company providing Information Technology, Geographic Information Systems (GIS), Modeling and Simulation, and Audio-Visual systems design, sales, installation, and training. We received the Tidewater Regional Small Business of the Year Award, named Virginia’s Top Fantastic 50 Companies by the Virginia Chamber of Commerce, and received the Small Business Administration 8(a) certification.
Like all Virginia Beach businesses, ours has been on the receiving end of the insane taxes and administrative paperwork the Commissioner’s office requires of us. We’re required to pay the BPOL tax on gross receipts, meaning whether we make or lose money, we pay the same taxes. We’re required to report business property for taxation from every last stapler to printers to desks, and depending what kind of business we are categorized in, we will get taxed a different rate. It’s burdensome, expensive and the wrong way to tax local businesses.
It’s a major reason why a Commissioner should have real world business experience.
How will you work with small businesses to help them navigate the ongoing challenges related to the novel coronavirus? I noticed that after 20 years without an opponent, the Commissioner suddenly decided this year to advocate for helping small businesses with lower taxes now that he has a campaign to run. Welcome to my campaign.
He could join me in calling for the end to gross receipts taxes and the cumbersome filing requirements for business property at a time when businesses were suffering. And he could’ve stood up last year when the Governor was crushing small businesses.
The current Commissioner was fairly silent when his fellow Democrats shut down small businesses unfairly while big businesses were allowed to stay open. He often speaks of “advocating” for Virginia Beach, but was silent when Republicans were advocating opening the beach and ending the insane unemployment benefits that paid people $50,000 to not work while businesses were limiting hours because of labor shortages.
Please explain the revenue commissioner’s role in documenting short term rentals in the city. What can or should the office do to ensure compliance by operators? We were asked about Short Term Rentals at the Sandbridge Civic League, specifically about the software the Commissioner uses to discover short term rental properties. Technology is one of my specialties, and I answered that I would certainly be open to using the best software available, not just software that other cities use or recommend. Virginia Beach is unlike other cities as a vibrant coastal community with a decades-long history of coastal rental homes, and you deserve the best. I would also work closely with other city departments to make sure those responsible for compliance have information from the Commissioner’s office on existing short term rentals that are grandfathered and have complied with requirements.
I will work with city staff, put egos aside, and work for the good of Virginia Beach residents and businesses.
PHILIP J. KELLAM
Residence: Oceanfront
Age: 65
Occupation: Commissioner of the Revenue
Education/Military Service: Elon University
Key endorsements: Mark R. Warner (United States Senator); Helen Dragas (former Rector, UVA Board of Visitors), Dr. Amelia Ross-Hammond (Former City Council Member, Founder and Chair of the Virginia African American Cultural Center)
Website: votephil.net
Phone: (757) 362-1956
Email: 4philkellam@gmail.com
Social Media: @philkellamvb on Facebook, @pjkvb on Twitter and www.liinks.co/philkellam
What are your specific qualifications for this office? Prior to my first election to the office of Commissioner of the Revenue I served the two prior commissioners as Property Inspector, Trust Tax Agent, Business License Supervisor and Audit Supervisor. First elected in 1997, I am serving in my twenty-fourth year as commissioner. In 2013, I received my designation as Master Commissioner of the Revenue from the University of Virginia. Currently, I am a member of the executive committee of the Virginia Commissioners Association serving as 1st Vice-President.
Over the years I have worked to build a culture of service to taxpayers based on professionalism, accountability and courtesy. I’ve reduced my staff 17% but unlike days gone by, all members are cross trained. While our workloads have increased my budget growth trails the city budget’s growth by 21% and our office is rated the most efficient in Hampton Roads. I work with taxpayers every day and I will continue to apply that knowledge in innovative ways to accomplish my duty to the citizens of Virginia.
Please describe your management or administrative experience. I have deep institutional knowledge of the duties of commissioner and how they relate to local and state tax policies. This, along with my education and management experience enable me to distinguish real opportunities to build alliances and help taxpayers rather than making empty promises. It is this combination of institutional knowledge and drive to focus on every taxpayer in both service delivery and tax policy that has driven our success to date. Under my leadership we accomplish exceptional results saving taxpayers millions annually in an era of political divisiveness through: On-Line Car Tax reductions; Real Estate Tax reductions; no recreational boat tax; no admissions tax at school events; DMV registrations services right in our office; and no more time wasted on those old “city stickers!”
Today, I am urging the City Council to: Reduce the Personal Property Tax on seniors; Suspend the Business Property Tax on new business; Reduce the BPOL Tax on small business. These are achievable goals and should be adopted.
How will you work with small businesses to help them navigate the ongoing challenges related to the novel coronavirus? In the spring of 2020. I proposed an ordinance to suspend the City Meals Tax, which City Council adopted. In December of 2020 I proposed an ordinance to suspend the city alcohol tax which the City Council adopted. Currently, I have drafted ordinances to suspend the Business Property Tax on new businesses and reduce the BPOL Tax on all classes of small businesses. My proposal will reduce the BPOL Tax to $40 on 76% of Virginia Beach businesses. That can be accomplished, unlike the absurd proposal by my opponent to just eliminate the $55 million BPOL Tax.
COVID has presented ongoing operating dilemmas. In March 2020, the City eliminated public access to my offices but we continued operations. By July 6, 2020 we were allowed to reopen by appointment to remain in compliance with state and local mandates. Today, walk-ins are welcome and appointments are available.
If you want to avoid an in person transaction, visit us online where nearly 90% of our transactions are completed.
Please explain the revenue commissioner’s role in documenting short term rentals in the city. What can or should the office do to ensure compliance by operators? In 2016 I informed the City Council of the increasing number of short term rentals (“STRs”) in Virginia Beach. Property owners were engaging online platforms like Airbnb to rent their property without regard for tax or zoning laws. I asked for the City Council’s assistance in identifying and registering property owners for collection of the Transient Occupancy Tax. The council passed my proposed ordinances and engaged an online vendor to help discover and identify STR’s operating illegally. This vendor provides weekly updates to my Investigations Division and the Planning Department’s Zoning Division. Together we have identified over 2,900 STR’s. My staff often works with the Zoning Division to compare notes to the extent allowed. Current Virginia law prohibits me from disclosing business information to the City but I am working with the business community, the City and our General Assembly delegation on a bill to amend the law in 2022.
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