Thursday update (01/31): Real estate tax relief

Weekly update of my legislative agenda issue.

Wednesday’s local section in the Virginian Pilot included a headline about real estate tax increases in Norfolk. I knew this day was coming – and it was the main reason I left the Board for of review for Real Estate Assessments. When the sales information for real estate assessments lags those assessments by about 18 months, it is only natural that the assessments will appear to rise at a time when an increase in property values have slowed or even decreased. I actually thought this day would have come before now. Of course, with Norfolk facing a shortfall of at least $18.6 million, I don’t expect another rate increase. (Where all the money went during the boom times is a subject for another day.)

So, real estate tax relief remains a priority. During my trip the to the GA Wednesday, I got a chance to chat briefly with my delegate, Paula Miller. Her principled stance on the passage of the homestead exemption – a major issue in the fall campaign – should be commended. Giving the localities this tool is a critical step.

So, without further ado, here is where we stand on real estate tax relief legislation since my last update:

Constitutional amendments:

• HJ3 – (Brink) – 20% homestead exemption (2nd reference). Incorporated into HJ4.
• HJ4 – (Albo) – 20% homestead exemption (2nd reference). Passed the House.
• HJ56 – (P Miller) – 20% homestead exemption (2nd reference). Incorporated into HJ4.
• HJ121 – (Moran) – 20% homestead exemption (2nd reference). Incorporated into HJ4.
• SJ6 – (Whipple) – 20% homestead exemption (2nd reference). Reported out of the Senate P&E Committee and re-referred to Senate Finance.
• HB6 – (Brink) – 20% homestead exemption – Incorporated into HB11.
• HB11 – (Albo) – 20% homestead exemption – voter referendum in November 2009. Passed the House.
• HB272 – (P Miller) – 20% homestead exemption – voter referendum in November 2008. Incorporated into HB11.
• SB9 – (Whipple) – 20% homestead exemption – voter referendum in November 2008. Reported out of the Senate P&E Committee and re-referred to Senate Finance.
• SJ60 – (J Miller) – exempts up to $100,000 from tax (1st reference). Continued to 2009.
• SJ10 – (Reynolds) – exempts from real estate tax the principal residence of certain veterans (1st reference). Continued to 2009.

Real estate cap bills:

• HB74 – (Purkey) – requires localities to lower tax rate to keep tax paid the same; locality may increase rate after public hearing. In HF subcommitte #1.
• HB102 – (Albo) – total revenues from real estate taxes cannot exceed 105% of prior year’s revenues unless approved by 2/3 of local governing body. In HF subcommittee #1.

Other:

• HB163 – (Sherwood) – permits localities to use projected income and financial worth for current year in granting real estate tax relief to elderly and disabled (instead of prior year’s actual) in certain circumstances. Read second time and engrossed 1/30.
• HB215 – (Alexander) – permits localities to tax residential real estate at a lower rate than the general class of property and prohibits localities from raising the rate on the general class of property. In HF subcommittee #1.
• HB270 – (P Miller) – increases income eligibility for tax relief for the elderly and disabled in certain localities. In HF subcommittee #1. On docket for 1/16 1/23 1/30.
• HB698– (BaCote) – increases income and net worth eligibility for tax relief for the elderly and disabled in Newport News. In HF subcommittee #1. On docket for 1/16 1/23 1/30.
• HB927 – (Nixon) – requires localities to fix tax rate 30 days prior to approval of budget. In HF subcommittee #1.
• HB1036 – (Frederick) – requires localities to fix tax rate 30 days prior to approval of budget. In HF subcommittee #1.
• HB1045 – (Watts) – exempts up to 20% from taxation; contingent upon passage of amendment. In HP&E Constitutional subcommittee. On docket 1/23.
• HB1118 -(P Miller) – exempts up to 20% from taxation; contingent upon passage of amendment. In HP&E Constitutional subcommittee. On docket 1/23.
• HB1274 – (Spruill) – increases income eligibility for tax relief for the elderly and disabled in certain localities. In HF subcommittee #1. On docket for 1/16 1/23 1/30.
• HB1275 – (Spruill) – allows localities to grant higher percentage of tax relief to the elderly. In HF subcommittee #1. On docket for 1/16 1/23 1/30.
• SB10 – (Northam) – exempts up to 20% from taxation; contingent upon passage of amendment. In SP&E committee. Stricken at the request of Northam 1/29.
• SB496 – (Northam) – exempts up to 20% from taxation; contingent upon passage of amendment. In the full Senate but passed by for the day on 1/30.

Also, SJ81, offered by Sen. John Miller, proposes a JLARC study on the implications of an income tax credit for homeowners whose property taxes exceed a certain percentage of their income. Passed the Senate.