SJ354, patroned by Norfolk Senator Nick Rerras (R-6th), unanimously reported out of the House Privileges and Elections Committee today. Bill summary:
Authorizes the General Assembly to enact legislation that will allow localities to exempt or from real property taxes or defer real property taxes up to twenty percent of residential or continuous-habitation farm property that is the owner’s primary dwelling.
According to the Virginian-Pilot, the bill received a strong endorsement from Del. John Cosgrove (R-78th), who was upset when a spokesman for Northup Grumman complained that the bill would discriminate against businesses. Cosgrove used the same argument in support of this bill as I and others have made in the past: the rate reductions implemented by the localities as the result of residential real estate value increases have resulted in a windfall for commercial property owners, whose property values have not increased at the same rate.
What a difference a year makes! When Kenny Alexander (D-89th) proposed similar legislation last year, his bill got nowhere. Now that real estate values are flattening out, I have to wonder whether any of the localities will opt to use this provision by the time it becomes law, assuming it can pass the House this year and then both houses again next year.
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