The Virginian-Pilot
©
VIRGINIA BEACH
Real estate assessments, which surged by as much as 22 percent annually this decade, will decline for the first time in recent memory.
Residential property assessments decreased on average by 4.0 percent, City Assessor Jerry Banagan will report today, and total assessments will drop by 2.3 percent in the 2010 fiscal year. It's the first decrease in the tax base in his 26-year career with the city.
Although the average assessment for commercial and industrial property is increasing, the average assessment for both residential and commercial property will be 3.5 percent lower than this year.
If the tax rate of 89 cents per $100 of assessed value remains the same in July, when the assessments become official, the average homeowner can expect a decrease in his or her tax bill.
Assessments will go out Friday, and three out of four properties in Virginia Beach will be lower than last year. Banagan expects just 17 percent of properties to see an increase in assessment, a reversal from last year, when 17 percent saw a decrease.
The crash of the residential market bears much of the blame for the 4.0 percent drop on residential assessments. Commercial and industrial property assessments increased by an average of 5.2 percent.
"It could have been a lot worse," said Councilwoman Rosemary Wilson. For the city, commercial property was "the saving grace, quite honestly."
Assessments in every district, except for the Beach, declined. Properties in the Beach district posted an average increase of 0.9 percent. "You see some disparities," said Councilman Ron Villanueva. "Obviously, the folks who live on the water have maintained their value."
According to a report from the city assessor, the average home is currently assessed at $327,200, and the property owner pays $2,912 a year in real estate taxes. For the 2010 fiscal year, the report says, the assessment of such a home will drop 4.7 percent to $312,000, and the taxes to $2,777, or about $135 less.
Banagan expects that Virginia Beach will collect $493.5 million in real estate taxes by early June 2010, $10 million less than projections for this year.
City leaders expected the real estate revenue, which makes up about 29 percent of the total budget, to shrink. The City Council recently had a retreat to discuss a $103 million budget shortfall.
Other South Hampton Roads communities also have reported declines in their assessments. Residential and commercial property in Portsmouth declined by an average of 0.36 percent. In Chesapeake, average assessments droppe d to 1.8 percent.
The Beach's assessments account for sales through the first week of December 2008.
Councilman Bob Dyer said he doesn't expect the market to improve this year. Next year's assessments will likely be the same or lower, he said. "It's not going to be a year or two and we're back to Xanadu. Life as we know it has changed."
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
Delicious
Digg
Reddit
Facebook
Twitter
Google
Yahoo
my assesments went down 300
my assesments went down 300 dollars my land went down but my house went up so it only averaged 300 diffrence way to go va beach im still where I was a year ago
4% drop my but
Our new assessment just came in today. They wrote about a 4% drop, so to my surprise my new assessement went down over 30%. Stocks going down, home value going down, no raises....When and where is the revolt. I'm there.
Taxpaying responsbility is a two way street
When I bought my home in 1997, who could have predicted the housing boom that happened over the next 10 years? If and when I decide to sell my home, I will probably still make a profit, even with the bubble bursting like it did. If I don't sell, then the market price of my home is IRRELEVANT to my financial situation. What is never irrelevant is the property taxes I am required to pay, which have more than DOUBLED since I bought the home. I cannot control what other people think my home is worth, I can only control what I paid for it at the time of sale, and make an informed decision of what I can afford. The city's doubling the amount of taxes I have to pay in less than 10 years is irresponsible, inconsiderate of my financial situation, and grossly unfair. The max. yearly increase in the total amount of the property taxes I owe should be linked to the inflation rate, and then re-baselined at the time of sale.
Real Estate Values
You clearly have a lack of understanding of the appraisal process, however, if you take the time to educate yourself on the facts, your emotions will less likely be the driving force behind your comments. The state requires appraisers to prove extensive knowledge and education to be licensed to appraise real estate. Take some courses. Do some real research. You might be surprised that even though all appraisers’ don't agree, at least they have facts to support their conclusions or their license will be revoked. Don't be afraid to ask questions of your assessor, but don't draw conclusions with no facts to support them.
remember
You CAN challenge an assesment.
Artificially Increased Tax Revenue
According to a story in the Pilot of a year or so ago the city of Portsmouth hired an out of state consulting firm to calculate the value of properties in my area (Churchland). The consultants then picked a couple of dates during the highest inflation period of the housing market for which to calculate a projected rise in property values over time. This rise was then extrapolated into the future to produce the purely fictional property values we have today. The city then reaps a high return in taxes. This for a city with the highest tax rate, lowest amount of city services and some of the worst school districts in Hampton Roads. BTW, my appraisal this year reflected the same ridiculous value of last year. At this rate I will be paying artificially increased taxes for many years to come.
When all is said and done I am only certain of three things...
1. One if they ran the numbers today with the same formula there would be a steep devaluation of my proper values toward real world numbers.
2. I am certain those out-of-state consultants were certainly "well paid".
3. And the City of Portsmouth, like the other cities of Hampton Roads, has its fair share of crooks in gove
Mr. Barrett
Mike Barrett writes "To listen to the boo birds herein is to listen to the voice of anger, resentment, and dare I say, lack of understanding. Of course, everyone is entitled to an opinion, but once in a while, it would be nice to see an informed post."
Yes sir Mr. Barrett. We too would like to see a post from you once in a while that doesn't belittle the guy that has had their assessments go up artificially 30%. Then when the bubble bursts and the market is in the tank, folks should get a reasonable decrease in assessments. You, are a CEO and a retired 06 don't have much to worry about as far as expenses and taxes. The rest of us are tired of being played for fools. Anger and resentment...you becha. Lack of understanding.....I hardly think so.
real estate assessments
The city assessors do not factor in foreclosures. In the past foreclosures were very few of the sales so they did not reflect the market value. Now they are common and are a reflection of the "Fair Market Value." The cities are in a bind and have chosen to use the definitions and rules that they have established and serve them best. There is little concern for the dishonesty of this process or the anger it causes with citizens. Governments have become like the Wall Street investors, bankers, developers and have lost their moral compass. No honesty, no compassion and a lack of respect for citizens. They have a financial problem but dishonesty is not the best way to face it...but it is the path they have chosen.
hey Mike...
Diogenes, Having Failed in his Search for an Honest Man.....I'm certain he was walking amongst politicians......edumacated enuff 4 u??
Tina Sinnen & taxes
I've met Tina Sinnen at various events sponsored by the Republican Party of Virginia Beach. I really appreciate her common sense conservative values. (She also is a very talented singer folks.)