Tuesday, October 09, 2007

RPV's 2008 Legislative Policy Agenda: Property Taxes

Looking ahead to an even better, safer, more prosperous and opportunity filled future, Virginia Republican leaders in the General Assembly are championing a forward-looking agenda for governing that builds upon their past accomplishments.

Property Taxes

· Creating a 20% homestead exemption on primary residences. A constitutional amendment (SJ 354, 2006) sponsored by a Republican lawmaker would authorize the General Assembly to enact legislation that will allow localities to exempt up to 20 percent of the value of residential or farm property that is the owner/occupant's primary dwelling. This amendment has already cleared its first hurdle, having secured the first of two constitutionally required approvals by the General Assembly.

· Requiring that local governments determine tax rates before authorizing a spending plan. Currently, state law requires local governments have to vote only if the rate increases, even if a reduction still results in higher revenue collections. By enacting this reform, local governments would have to justify the tax rate and the revenues produced by it before adopting a spending plan.

· Increasing transparency in assessment process. With this measure, the previous year’s assessment and rate, as well as the rate that would result in flat revenue and the proposed new rate, would be added to the public notice requirements.

· Transferring the burden of proof for assessment increases to local government when increases exceed 20 percent. Currently, homeowners have to prove that an assessment hike is unjustified. This measure would place that burden on local government when an assessment increase exceeds 20 percent n a single year.

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