The Virginian-Pilot
©
VIRGINIA BEACH
For the second year in a row, home values continued their downward slide, according to a report from the city assessor presented Tuesday to the City Council.
Homeowners will see their assessments fall by an average of 5.75 percent. Last year, residential assessments fell nearly 4 percent. The two -year trend is a striking reversal from 2006 to 2008, when average values rose by more than 20 percent each year.
The full report from City Assessor Jerry Banagan can be viewed here.
Whether the decline translates into a tax cut for most homeowners remains to be seen. Some City Council members, led by Mayor Will Sessoms, have floated the idea of a "revenue-neutral" budget. This means raising revenue
sources, including the tax rate, to make up for the fall in assessments so the city takes in the same amount of revenue as last year.
Because of falling property values, the city would take in $31.8 million less in real estate taxes than last year, if the tax rate stays at $0.89 per $100 of assessed value. That money is part of the $84.4 million shortfall facing the city and schools.
"I am giving strong consideration to a revenue-
neutral budget," Sessoms said after the meeting. He said he's planning to support a 2- or 3-cent increase in the tax rate.
Other council members said they wouldn't support a tax rate increase.
"When the housing boom was up, we didn't hesitate to take more money," Councilman Bob Dyer said. "Now that it's down, we have to give it back."
The City Council will vote on the budget in May.
Average home values also dipped below $300,000 for the first time in four years, to $290,500. If a home of that price fell in value by the average, 5.75 percent, and the tax rate stays the same, the homeowner would pay $148 less in property taxes.
About 88 percent of properties will see a decrease, the report showed. Eight percent will stay the same and 4 percent will see an increase.
Commercial and industrial properties were basically flat, inching up 0.18 percent.
Within assessments of residential proper ty types,
single-family homes posted a 7 percent decrease, low-rise condominiums fell 6.9 percent and townhomes dropped 5.3 percent.
Residential and agricultural land makes up 85 percent of the city's tax base. Commercial and industrial make up the other 15 percent.
The city will mail assessment notices out Friday.
Aaron Applegate, (757) 222-5122, aaron.applegate@pilotonline.com
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Rose Hall VB Property Assessments
Although the media is reporting a 5.6 percent average decrease in assessments in the Rose Hall VB region, it appears that Southern Point, a subdivision of Rose Hall, received no reductions at all. At least that's what the VB City Assessor's Office is currently indicating. :-(
Tax Decrease... Ha
I guess my home in the Lago Mar section of Virginia Beach must be one of the small percentage of increases. Go figure, continue to tax those who they view as "having" more...
Belt tightening needed
Between 2001 and 2009 the Virginia Beach tax collector took in about $320 million as a result of increasing real estate values. Our "Let The Good Times Roll" city council spent every penny of that bonus. Now, with a one year decrease of $31.8 million, Mayor Sessoms and others on council are whining for a real estate tax rate increase. Many of these same council members fought efforts to decrease the tax rate during the "Good Times," when real estate values jumped 20 percent annually.
To Sessoms and others on council who are on board for a real estate tax rate increase, I say pull your belts a couple of notches tighter like the rest of us have had to do during these difficult economic times.
Absolutely
Raise my taxes during one of the worst recessions in history because you have mismanaged your money? I am watching for anyone on council who supports an increase in the tax rate. Election day comes...and you're outta here...
Reduce Spending
Virginia Beach needs to reduce spending, not raise the tax rate or impose garbage fees and other charges that by any other name are still taxes. A 4-cent increase in the tax rate and a $20 a month garbage fee, which has been rumored, amount to an increase of 10 to 12 percent for the average homeowner. Most of us face major tax increases next year when the Bush tax cuts expire without the city's help. No new or additional taxes please.
No hot air blowing
Been awful quiet from the developer side of the street.
Kinda hard to blame the Governor or Legislature for this one I guess.
And can't tell the anti-tax boo-birds how this will make their tax burden go down.
Sure can't blame this one on the VBTA.
So what gives?
Don't bet on it
Don't under estimate our esteemed devloper. He is a master of spin. This man has an amazing talent for turning a tax increase into something magnificent. In the same paragraph he can also justify blaming the Grover Norquist, less than 16% of the vote VBTA, anti tax zealot boo bird Republican House of Delegates and now Governor McDonnell for every woe in Virginia. Of course we cannot let our developer forget that his candidate only got 41% of the vote. Just want to throw that out there as a friendly reminder. Government has to live within it's means just as we have to do.
Come on guys!
Come on guys, Willie wants his choo choo train. Please please help him get it! Seriously, the City Government of Va Beach needs to downsize. My tax rate has doubled in less than 5 years, yet the city's running a deficit. I don't even know what zero based budgeting means. A fair way to keep taxes reasonable would be to base the rate on the CPI for inflation. That way planning would be easier; consumers and propety owners could plan accordingly. I have a feeling though that Willie's idea of zero based budgeting would be to increase taxes without regard to the value of the property. Every concerned citizen should keep an eye on scheming Willie and attend the May budget session.
Virginia Beach Accessments
So, here we go again with Mayor Will "Tax Everyone" Sessoms. He has floated the idea of a "revenue-neutral" budget and is giving strong consideration to a revenue neutral budget, and is planning to support a 2 or 3 cent increase in the tax rate...those are his own words. We need to find out come this May what Council members are in support of this and make sure that we vote Mayor Sessoms out and the Council members who always support some form of a tax increase.
Let's stand behind Councilman Dyer and the other Council members who stated they would not support a tax rate increase. What I think Mayor Sessoms and some Council members should do is stop all of the spending and start representing us, the citizens who put them in office. I can think of perhaps 3 Council members who truely represents us and folks, Mayor Sessoms does not represent us and never has since he has been in office. His time is coming... BZ to Councilman Dyer and Councilman DeSteph who is the one Conservative who always represents us.
Here is a good one for you
Here is a good one for you all to watch. It was a series called "The ascent of money." It aired on PBS I believe. This is the part about property:
http://video.google.com/videoplay?docid=-635091739003581971#docid=2696194771594185697
(That is part 5 (Which I think is really 6 of 7). The entire thing appears to be watchable there.
The quote about houses turning out to not be treasure chests of riches with rooftops is a favorite.
Check out the whole series. Good stuff.