The starter light rail line is seriously over budget, with costs expected to be an additional $55.9 million. Needless to say, Norfolk council members aren’t happy. The question now is how to come up with the additional $20.7 million that is Norfolk’s share.
One idea that is to increase the real estate taxes on commercial properties.
Tucked into HB3202 was a provision that allowed exactly that. § 58.1-3221.2:
A. Beginning January 1, 2008, and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities that are embraced by the Northern Virginia Transportation Authority and the Hampton Roads Transportation Authority, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation.
[…]
B. In addition to all other taxes and fees permitted by law,… (ii) the governing body of any locality embraced by the Hampton Roads Transportation Authority may, by ordinance, annually impose on all real property in the locality specially classified in subsection A: an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses.
The rate in the localities covered by the NVTA is a maximum of 25 cents per $100. The article points out that Arlington has already imposed a tax and that Loudoun is considering doing likewise.
I have to admit I had completely forgotten about this provision, although it was a part of the conference bill. It was changed, though, from being a required portion of the funding for the transportation authorities to being an option of the localities, which is why it survived the constitutional challenge.
I wish that there had been an ability for localities to have a bifurcated real estate rate when the market was booming, part of the basis of my support for the homestead exemption. But we didn’t so commercial property owners benefitted from the reduction in the rate, as their property values grew at a significantly slower rate than that of homeowners. Unfortunately, this is really a bad time to raise taxes on anybody.
Whether or not to build light rail is no longer the question. Norfolk has already committed significant resources to this project, and I don’t see how we can possibly stop now. I dislike paying more taxes as much as the next person, but perhaps the city can come up with a combination that won’t be so painful on any one group of taxpayers.
VIVIAN J. PAIGE | All Politics is Local 
I’d be interested in how Sessoms says Va Beach is going to pay for its share!
Hey, (and this works in Norfolk too, I own property in Norfolk) how about taking some of the share of ballooned property tax values that lead to outrageous increases in local government revenues and applying that towards paying for light rail?
Please do not tell me that you wasted all of the increased revenue. Please do not also tell me that property values are now going down unless you decrease the assessment on the property I own.
Say it again!!!!!!!!!