Both City Council and the Board of Supervisors met last night, and both are considering their options on how to adjust the tax rate in response to assessment increases. The staff of each municipality has recommended keeping the tax rate the same, which would leave many home owners paying about 15% more than they are now. Three members of City Council have gone on record supporting a rate cut, though at a rate that will still leave many homeowners paying more in taxes. The Board of Supervisors asked county staff to determine the impact of a $0.06 rate cut, taking it down to $0.68 per $100 of assessed value. (Lowering it to $0.58 would leave tax payments flat.)
Supervisor Sally Thomas figures a $0.74 rate is necessary just to cover the county’s basic obligations and deal with the demands that keep increasing along with the population. (The taxes paid by new residents aren’t enough to cover the demand that they place on public services, meaning that taxes have to be raised on the rest of us.) Three members of the BoS support a $0.68 rate, one a $0.71 rate, one a $0.72 rate, and one a $0.74 rate.
It seems like the tax deferral plan is the best, long-term solution to this issue, along with getting the authority to tax commercial and personal property at different rates. But I would hope City Council doesn’t limit this deferral plan to only the elderly and low-income. I’m relatively young and middle-class, but the real estate taxes are still a huge burden, especially for those of us who don’t plan on selling our homes for many years and cashing in on their value.
Why do we let our officials refer to this as a tax cut? State law mandates the reduction of property tax rates to 101% of the previous year after assessments are made. Thus Charlottesville’s tax rate becomes $.875 unless council raises it! It isn’t a tax cut: it’s a tax hike. I never thought democrats would become as polished as republicans at redefining a word or phrase beyond sense and doing it with a straight face…