by elizabeth farina, Midlothian Exchange.com

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Chesterfield County’s diluted identity with eight USPS zip codes was highlighted as one of the reasons to potentially modify the current structure that lists Richmond, Petersburg and Colonial Heights in tens of thousands of county-based addresses. Identity has become an expensive commodity for county resources to track down the estimated $2 million of misallocated sales tax revenues from businesses on an annual basis. 

The challenges were outlined in the first presentation on Wednesday, Jan. 21 at the Holiday Inn Koger Center to discuss potential zip code changes.  The Greater Southport Business Association, with Holiday Inn Koger Center, sponsored the public meeting.

“This is very, very preliminary,” said Deputy County Administrator Becky Dixon. The community feedback will be presented to the Board of Supervisors in the spring.

County staff member Matt Harris presented the potential problems with the current zip code structure noting the federal mail delivery system is used in multi-purpose categories and services from residential issues to taxes. The eight zip codes include Richmond 23224, 23225, 23234, 23235, 23236, 23237; Petersburg 23803 and Colonial Heights 23834. Only two Richmond zip codes are completely within the county’s boundaries.

Harris explained that the state’s tax commission uses zip code identification for businesses to report the 5 percent sales tax at the time of sale, which a locality receives one percent. For national retailers, local chains, Internet and catalog sales, the one-time monthly payment is lumped into an identified FIPS code based on the physical address of the business. The county used two different methods in identifying the lost revenue estimates ranging from $1.5 million to $2.16 million.

“We are getting the money back,” Dixon said. “It is not intentional. When discovered, it is rectified. We just don’t get it back in a month,” she said.

Several suggestions from the public attending noted that the change should begin with the state rather than the locality’s zip codes. “Times are tough right now and we need every penny,” said county resident Claudia Simon.

For international and global companies, a Richmond identity is part of the businesses’ branding. The cost of changing zip code identity would incur costs ranging from shipping to stationary supplies and become an expensive burden.

“It could be five times that amount of money with legal notice provisions and man hours and untold expenses,” said business owner Kyle Woolfolk.

The county is seeking feedback from “over 50,000 residential and 4,200 commercial addresses that are affected” with multiple public meetings:

Matoaca Community Meeting with Board Supervisor Marleen Durfee will be held on Monday, Feb. 9 from 7-9 p.m. at Matoaca Middle School, located at 20300 Halloway Ave., in Petersburg
and
a Dale Community Meeting with Board Supervisor Jim Holland on Tuesday, Feb. 10 from 7-9 p.m. at Meadowbrook High School, located at 4901 Cogbill Rd., in Richmond.