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GOP puts forth plan to ease tax pains
GOP rolls out property tax proposals.
Date published: 9/25/2007
BY CHELYEN DAVIS
RICHMOND--House and Senate Republicans yesterday announced proposals to make homeowners more aware of property tax increases and to allow localities to reduce those taxes by one-fifth.
House Speaker Bill Howell, R-Stafford, and other House and Senate Republicans, said rising taxes on homes is a big problem, especially in fast-growing areas. Even though personal property taxes are local taxes, the legislators want to encourage local governments to rein in the increases.
"Virginians have had to endure the expense of ever-increasing assessments resulting in higher property tax bills for far too long," Howell said. "The package of measures is going to help alleviate the pressure on homeowners, giving them more effective tools to prevent rising assessments and bring clarity to the process that local governments use to set the tax rate."
The centerpiece of the Republicans proposals is a "homestead exemption" constitutional amendment that has already passed the legislature easily once, and is identical to a proposal by Gov. Tim Kaine when he was running for governor in 2005.
The homestead exemption would give localities the option of offering homeowners a 20 percent reduction in their property taxes for their primary residence or farm property. The exemption would require a constitutional amendment, so while it passed the legislature this past session, it must pass again next session and be approved by voters.
Sen. Nick Rerras, who sponsored the amendment, said voters tell him they want that exemption.
"This would just be a great bill for the community," he said, adding that it would help combat "unsustainable growth in the real estate tax that will result in people being taxed out of their homes."
The Republicans' other proposals don't reduce property taxes but instead require more transparency when local governments set the tax rates and assessments.
The Republicans want to require that local governments determine a new tax rate before authorizing spending plans; require the previous year's assessment and rate, as well as a flat-revenue rate and the proposed new rate, to be included in public notices about tax rate increases; and to put the burden of proof on local governments, rather than homeowners, if a home's assessment increases by more than 20 percent.
Del. Tim Hugo, R-Fairfax, said the proposals would help homeowners who are being forced out of housing by taxes that are going through the roof. In Fairfax County the average assessment increased 20.5 percent this year, lawmakers said, and in Loudoun County, assessments have risen about 15 percent a year for several years.
"It is a problem that's not going away and we need to address it now," Hugo said. "Knowledge is good we're just trying to empower the homeowner."
Chelyen Davis: 804/782-9362
Email: cdavis@freelancestar.com
Date published: 9/25/2007
Most recent reader comments:
They'll get it another way.
(posted by
FredDude07
, Sep. 25, 2007 8:22 pm)
It doesn't matter, they'll tax you in another way and still get every penny they can squeeze out of us. The problem is the mismanagement, not the taxes. I've yet to understand inflation can rise 2% but taxes will rise 10%. The problem is spending with the belief they have a bottomless pocket full of money.
Plus add income tax
(posted by
Mr_Clean
, Sep. 25, 2007 2:41 pm)
I agree we need to put a cap on real estate assessments. Now General Assembly members, let’s add to that bill that we cap the income tax rate. It is not right that when I work hard and improve my earnings that the state automatically gets more of it. This is a reoccurring tax increase when I get a raise and that should be capped. This will allow families to spend more in the communities where they live thereby supporting the locality that has a real estate cap.
Homestead Exemption works
(posted by
Dana1
, Sep. 25, 2007 2:41 pm)
I lived in Slidell, LA for 8 years (suburb of New Orleans). We had a $75,000 Homestead Exemption. You paid taxes on the value over $75,000. 7 years ago, my house was worth $135,000. My real estate taxes were $265 per year! Yes, that is all. We lived in a great community, lots of parks/rec centers & hospitals. Best of all, schools were better than here in Stafford. St. Tammany Parish (another word for county) had 13 school board members and 50 schools. Much less money, a LOT BETTER MONEY MANAGEMENT.
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