General Assembly Republicans have rolled out four proposals they believe will protect Virginians from climbing property tax bills, but a local official said the measures could harm schools, public safety and other services.
GOP legislative leaders said the hot housing market in recent years rapidly grew property assessments around the state, which caused homeowners’ annual bills to skyrocket. Even as many localities decreased their tax rates, individual bills climbed sharply because home assessments increased by 10 to 20 percent, lawmakers said.
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The first plank of the GOP’s plan would allow local governments to exempt the first 20 percent of a property that is the owner’s primary residence. Virginia’s constitution requires localities to have permission from the state for most revenue-related actions.
The second provision would require the localities, instead of the homeowner, to prove an assessment is justified if it increases more than 20 percent in a year. Currently, the property owner must prove an assessment is unreasonable to have it overturned.
Republicans would require local governments to vote on tax rates before enacting an annual budget. Existing state law only requires a vote if the rate increases, regardless of whether assessments have jumped.
Localities would also have to publicly advertise proposed annual tax rates and assessments, along with how much money they would generate. The notices would have to include what the rate and assessments would have to be keep revenue collections level with the previous year’s.
“Making certain that the impact of reassessments on real estate taxes is fully communicated to property owners is an important responsibility of government,” said Del. Tim Hugo, R-Fairfax.
Falls Church City Councilman David Snyder said the GOP plan could hurt Northern Virginia localities, which he said provide essential government services “with little or no help from the state.” Local governments heavily depend on property tax revenue to fund schools, police and other operations, Snyder said.
“There are some things in there that are not bad ideas, but there are some things that would hamper our ability to provide the services our citizens require,” he said.
