Facing a 23% citywide increase in real estate assessments, Norfolk Council members Don Williams and Randy Wright are proposing a 20-cent reduction in the tax rate. The rate, currently $1.35 per $100 of assessed value, would drop to $1.15. Council candidate Barbara Saunders is proposing a rate reduction of 30 cents.
Portsmouth, with the highest rate in the region at $1.44, is looking to reduce its rate 6 cents.
Everywhere, people are grousing about the increase in assessments. Let’s face it, folks: housing values have gone up. But what are cities and counties in Virginia to do when, due to the arcane Dillion Rule, they have to rely heavily on real estate taxes to balance their budgets? Both of the articles above point out expenditures that the cities need to spend our tax dollars on. What are you willing to give up in order to have a lower real estate tax bill?
Earlier this year, Kenneth Alexander (89th) submitted HB155 which would allow localities to give homeowners relief by allowing residential real estate to be taxed at a lower rate. But the bill was deferred to next year. (By the way – have any of the letters to the editor been about commercial property assessment increases?) HB121 was passed this year, allowing higher income and asset limits for those eligible for elderly and disabled tax relief. But not all of us are elderly and/or disabled and even many of those who are do not qualify under this provision.
I sat on the Board of Review for Real Estate Assessments (Equalization Board) here in Norfolk for the past four years. I chose not to be reappointed because I couldn’t stand another year of hearing citizens complain about the rate, when there was nothing that we could do. As president of the board, I proposed to council that they pursue the course that Alexander included in his bill. And I spoke to Paula Miller (87th), one of the patrons of HB121, regarding the need to increase the relief.
The bottom line is that if Virginia were a home rule state instead of a Dillion Rule state, the localities could decide on their own to treat residential property separately from commercial and to devise their own plans to aid the elderly and disabled. I believe it is past time to dispose of the Dillion Rule and let the localities make their own decisions – those fitting them best – and not have to defer to Richmond.
So the next time you want to complain about higher real estate taxes, take it to your legislators – and tell them to do away with the Dillion Rule.
VIVIAN J. PAIGE | All Politics is Local 
Great post.
I read in today’s pilot ( a letter to editor) that the Norfolk Council will not make a decision on real estate rate reduction until after the May 3 election. I assume they are saying the city manager & staff can’t get her proposed budget together until after election. How coveinent for those seeking re-election or election to mayor. They are also saying the new counsel should decide this matter. We are being insulted. If the present counsel does not vote a reduction by election, vote them out. If they are running unapposed don’t vote for them or write in some else ( daffy duck, etc.). Please note that current Mayor Fraim has an opponent; I would vote Dan Montague even if he was a resident of the Norfolk Zoo.
Chuck – I saw the same letter. Don’t expect council to vote on such a touchy issue before the election. They aren’t going to do it.
Norfolk needs to comply with Virginia Code 58.1-3321 Effect on rate when assessment results in tax increase; public hearing
This law requires automatic adjustment of the tax rate so that current assesments times the tax rate (tax levied) does not exceed 101 per cent of the prior year’s tax receipts. If Council wants more money than a public hearing must be held.
Andy – I think they *do* comply with the law regarding the public hearing. They do it in conjunction with the public hearing on the budget. I’ve seen the required notices in the newspaper specifically regarding the real estate tax value increase on the effective real estate tax rate.
Vivian
The Code states “which shall not be held at the same time as the annual budget hearing”. So if it was done in conjunction…then it did not comply with state code.
Yes, I saw that part after I posted that. I have been searching for a copy of the newspaper notices on this but haven’t found it yet. They are definitely getting around the public hearing requirement somehow.
Last yeart the tax rate hearing was scheduled for 6 pm and the budget hearing for 6:15 pm. But the hearings were not held separately….there is only one set of minutes…….
This year, there are two meetings. But the budget hearing is being held BEFORE the real estate tax hearing. Somebody please explain to me how you can hold the budget hearing first??