Delegate says bill's delay might hold up tax break

Who said anything about hating the rich? Certainly not me. But think this through. A rich homeowner at the north end or east ocean view, with a home assessed at two million dollars, will get a reduced $400,000 exemption which at $0.89 will save them $3,560. Now who will pay for that tax break? Military and other families who rent homes, apartments, or condos and businesses which will now pay an increased tax rate on the full value of their assessment. The families who rent are just out of luck, but the businesses will pass through increases to consumers. The broad segment of homeowners who own a median priced home, say $250,000, think they will get a tax break, but of course the rate will have to increase significantly to make up for the exemption, so in effect, the actual taxes paid will be more than the year before. Plus, at the Beach, you'll have to stand in line with 106,000 homeowners to prove who you are, that you own the property, and that you don't rent it out, so you can more taxes than the year before. What a break!

The developer would love to see tax relief to the developers and place the burden on the middle class. I think it was you Mr. Barrett that tried the "hate the rich" ploy when talking about enriching the people who live on the beach. But then you state that the car tax is a good thing. Shift the burden as long as it's not on the developer. How's that SPSA thing going anyway? Yeah... Righttttt...

Since it has been suggested that you call the members of city council, ask them what Moody's Investor Services, Standard and Poor's, and Fitch Ratings will have to say about losing 20% of the residential tax base in each city throughout the Commonwealth of Virginia. Memories are so short; it was quite recently that the Commonwealth received a letter from Moody's which said if the Commonwealth did not replace the revenue lost to the car tax that the Commonwealth's credit rating would be down graded. The anti tax payers group are setting up local government for the same fiscal chaos that the General Assembly caused by ignoring the effects of the car tax. Why would elected leaders do this? Frankly, it appears that many Virginia Legislators will do anything to appear as if they are cutting taxes when in fact they are just shifting the burden to another tax, a fee (abusive driver fees) or a charge for a service that we did not pay before. Before the Legislature drives local government revenues off the cliff, they should think again.

The Southside Chamber of Commerce and the Penisula Chamber continue to wage war on home owners. Folks, guys like Mr. Barrett and his business lobby cronies will do anything or say anything anything to avoid even the possibiity that their businesses might finally pay more of their fair share of local property taxes. Heaven forbid that over taxed long term homeowners might receive some tax relief! Friends, it is long past time that local tax dollars and state tax dollars are given to these homeowner-hostile business lobbies. Guys like Mr. Barrett continue to try to stop any tax reief for home owners. Contact your BOS or City Council and demand any funding for the Chamber or Hampton Roads Partnership is removed from their budgets.

Actually, it works like this:

"Arms Length" home sales (those sales between two parties who are not related or know each other) are down, but the cities are basing their entire budgets by rising real estate assessments. They counter by stabilizing home assessments while simultaneously raising land values so that your taxes never go down. Later, they raise tax rates. Once assessments go up, they never really go down.

What a joke. If the Homestead Exemption is popular, it is because most politicians like Paula Miller have made sure homeowners don't really understand its effects. Let's list a few. First, since assessments are now stabilized or even going down, the tax rate will need to increase to continue just the same level of services. So even if Norfolk approves a 20% exemption, the tax rate is likely to increase so that residents will still pay more real estate taxes. And to boot, you'll have to line up at the Assessors office to apply with about 50,000 others who will have to prove who they are, that they own the property, and that they live in it. The 35% of Norfolk citizens who rent need not apply; they will simply pay the higher tax rate that will passed through by their landlord. Businesses will pay much more in real estate taxes, so they will pass this cost through to their customers in higher prices for goods and services. So homeowners will pay more so East Beach Millionaires can spend more time on vacation in Europe. Thanks Paula!