A few months ago, at the Board of Supervisors Regular Meeting, District One Supervisor Granville Hogg attempted to introduce the requirement of knowing who the County is dealing with relative to employment, awards and issuing special use permits. According to Supervisor Hogg, the “Code is Clear, counties can require this. If you want to know the Man behind the curtain, it can be required that individuals doing business with the county must identify themselves.”
Hogg contends that the board has for too long protected entities that are somehow buried in the legal wrapping of an LLC. The consensus of the board, including Chairman Murray is that as long as you are a corporation, you are considered a separate entity. No matter that an individual may be the largest delinquent tax payer in the county, as president or CEO of the Corporation and benefactor of the corporation, you may still be eligible to be awarded all the County work you can bid upon. Individuals on the other hand will likely be disqualified if they owe county taxes.
Delinquent Tax Policy was again debated at this month’s meeting. Supervisor Duer noted that an individual who is delinquent on his personal taxes could still be involved in official county business if he or she was in a Limited Liability Corporation which was behind in its tax obligations. Membership in LLC’s is not public information.
During the debate county attorney Bev Leatherbury told the board that they can ask any entity applying for a SUP, position, or any other formal county involvement for a financial disclosure statement which would identify whether or not that individual was part of an LLC that may perhaps be delinquent on taxes.
The Board voted 3-2 (Hogg and Duer voting against) to move the Delinquent Tax Policy to public hearing.
From Virginia Code:
§ 15.2-2289. Localities may provide by ordinance for disclosure of real parties in interest.
In addition to the powers granted by this chapter, localities may provide by ordinance that the local planning commission, governing body or zoning appeals board may require any applicant for a special exception, or a special use permit, amendment to the zoning ordinance or variance to make complete disclosure of the equitable ownership of the real estate to be affected including, in the case of corporate ownership, the name of stockholders, officers and directors and in any case the names and addresses of all of the real parties of interest. However, the requirement of listing names of stockholders, officers and directors shall not apply to a corporation whose stock is traded on a national or local stock exchange and having more than 500 shareholders. In the case of a condominium, the requirement shall apply only to the title owner, contract purchaser, or lessee if they own 10% or more of the units in the condominium.