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City Council considers raising real estate tax

March 8, 2010 7:31 pm by

Four proposed options for a 2010 Richmond Real Estate Tax Rate were introduced today during the scheduled Richmond City Council Formal Meeting. The proposed options include $1.23, $1.22, $1.21 and $1.19. The current Richmond Real Estate Tax rate is $1.20, which would remain the same if no new rate is adopted. The vote on the adoption of a new rate will be Monday April 12, 2010.

From the press release:

Each year a number of possible Richmond Real Estate Tax Rate options are typically introduced in anticipation of adopting a new Richmond Government Budget (Fiscal Plan) for the upcoming Fiscal Year.

As a real estate tax rate must be set by April 15 annually, and sufficient time must be given between introduction and adoption to allow for review and public comment, a number of rates are introduced at the same time to allow for flexibility in adopting a new rate.

The five options (including the option to remain the same in no action is taken) are in preparation of a forthcoming proposed budget that will be submitted by the Mayor to Council on March 22, 2010. (Note: On February 22, 2010, Richmond City Council (by Ordinance Number 2010-34-40) extended the deadline for the Mayor to submit a proposed budget; from March 6 to March 22 at 3:00 p.m.)

The Richmond Real Estate Tax is the largest single funding source we use to pay for local government services and considerations regarding the rate include a $30 million shortfall in local revenue, which includes expected decreases from state and federal funding sources. Each one cent in real estate tax equates to and estimated $1.9 million in city revenue.

CONTACT For more information, please contact Then Honorable Kathy Graziano, President, Richmond City Council, Southwest 4th District, 804.320.2454 or kathy.graziano@richmondgov.com

BACKGROUND ON RICHMOND REAL ESTATE TAX ASSESSMENTS
As Richmond Citizens, we pool our resources to own and operate our government and decide what public services we want to invest in; the priority (investment levels) for these services; and, how we pay for them. Examples of our services include the management, oversight and delivery of such things as clean/safe water; streets/parks; firefighting/ rescue; trash/sewage removal; laws, police/courts; public transportation; and, our children’s education. Together, we own, operate, use and benefit from these services every day.

We as citizens have determined that a fair way to help pay for these services is for real estate owners to annually contribute funds, based on a percentage of the value of the real estate they own in the city. This process includes that each year, the fair market value of real estate in the city is assessed and the value is set Jan. 1 and an annual Richmond Real Estate Tax Rate is set by Richmond City Council by April 15. This rate is the percentage, based on $100 of value, which a real estate owner will contribute to help pay for government services in the city.

Our real estate tax is the largest single funding source we use to pay for our public services and is used statewide to pay for local services. There are approximately 73,000 real estate properties in Richmond and to help ensure fairness, Virginia State Law requires that Richmond perform annual real estate assessments to determine fair market value.

Real estate owners pay their share annually, based on the value of their real estate and the tax rate by June 15. For example, if a person owns $100,000 in real estate and the tax rate is $1.20 per $100, their share is $1,200 for that year.

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