Home News Richmond sees another year of double-digit percentage increases in property tax assessments | Govt. and Politics

Richmond sees another year of double-digit percentage increases in property tax assessments | Govt. and Politics

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With property tax valuations up an average of 13% this year, many Richmond residents can expect their tax burden to rise again next year.

City Councilor Richie McKiesen said: Increase in appraised property value A strong real estate market and limited housing supply are the drivers.

“I think this speaks to the city of Richmond being very marketable and very livable for many people, especially those coming from outside,” he said. Let’s see.”

State law valuations are intended to match the expected market value of a particular property. In the City of Richmond, property owners pay $1.20 for every $100 assessed. A 13% increase means owners of single-family homes valued at $300,000 this year will pay about $468 more next year when their taxes are due.

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Rising ratings are especially good, For cities’ coffers and homeowners to build equity, higher taxes can become a burden for those with below-average wages or those with fixed incomes.

“You’re kicking us out of the house,” 8th District Councilman Reva Trammell said of the assessment. “We cannot afford to accept these ratings that continue to soar year after year.”

Some of the largest increases in ratings were concentrated in the city’s North Side and East End neighborhoods. However, the largest increase in value was concentrated in the wealthier areas of the city’s West End. Several areas south of the James River also saw significant increases again.

McKeithen said growth is happening across cities. He believes part of this trend is that more residents are interested in owning a home, as rents are also rising.

“Interest rates were very attractive to individuals who were on the market to buy a home,” he said. No. Until the last few months, and probably still, buying a house is cheaper than renting an apartment.”

He said supply and demand, as well as rising costs of building materials and inflation, will also affect property valuations.

In the first three months of 2022, the number of new single-family home listings in the Richmond metropolitan area decreased by about 11% compared to 2021, while the average single-family home sales price dropped 11% over the same period. Jumped over and over to $397,000. According to the period Richmond Real Estate Association.

This data does not include townhouses or condominiums. New listings for these types of homes fell 26% in the first three months of 2022 compared to the same period last year, while average sales prices rose almost 17% to nearly $338,000. I was.

Laura Lafayette CEO Richmond Real Estate Associationsaid the valuation also reflected new construction and redevelopment taking place or slated to begin soon in neighborhoods such as Manchester and Clayton.

“If you have a fixed income or a meager income, a $200 to $300 increase in your bill will have a big impact on the month you have to pay those taxes,” she said. “In some affluent areas, the greatest increase in value is likely … but the economic impact will be greater in areas where citizens have modest household incomes.”

Trammell said he is preparing to introduce legislation to reduce the city’s property tax rate by 4 cents to offset the growing tax burden on property owners. She said she wasn’t sure it would pass, especially since city officials and some city council members were reluctant to support lowering her proposal by 6.5 cents last year.

Richmond Mayor Levar Stoney’s administration has opposed the tax cut, but earlier this year it offered a 2-cent tax cut if voters approved the plans for One Casino and Resort.

After last year’s ballot measure was defeated, the city had planned to hold another referendum this November, but officials canceled the plan due to a state law banning another casino vote in Richmond until 2023.

Mayoral spokesperson Jim Nolan said Thursday that Stoney supports allowing tax cuts even if next year’s ballot measure passes, but will speak out on tax cuts for the next property tax bill cycle. said it was too early.

“The mayor has consistently advocated growth and economic development projects that expand the city’s tax base as a way to reduce the tax burden on city homeowners,” Nolan said. “The administration encourages eligible residents to take advantage of city programs that offer tax breaks for homeowners.”

City residents who are disabled or age 65 or older and have less than $60,000 in income in the previous tax year and less than $350,000 in assets: You can apply for tax relief from the city. This program provides either a full exemption or a partial exemption of an applicant’s tax bill based on income.

While some city officials are considering lowering property tax rates, Lafayette said lowering the property tax rate by just a few cents would provide limited relief and would allow the city to reduce capital projects and public services such as public transportation. said it would be more difficult to invest in

Instead, it would be worthwhile for city leaders to advocate for state legislation that would allow local governments to adopt new tax exemptions, such as tax breaks for residents under age 65 but living in the same home for extended periods of time. she said.

“It’s time for Richmond to seriously consider seeking that relief for its citizens,” she said.

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