Stoney, Council Members Propose Property Tax Refund

Stoney said the rebate will amount to 5 cents for every $100 of property valued and will be paid out of any surplus funds left at the end of fiscal year 2022, June 30.

Six of the nine council members have co-sponsored the bill, so it’s almost certain it will be passed at next week’s council meeting.

But Richmonder’s taxes next year will be even higher.

For a house valued at $260,000, the 5 cent rebate would be $130 off the tax amount of $3,120 based on the current tax rate of $1.20 per $100. If the home’s valuation rose by the city’s average of 13%, its owner’s taxes would increase from her $2,760 last year.

“Our five-back initiative allows us to provide relief while being financially responsible,” Stoney said.

“We still need to invest in the people of Richmond,” he added.

When the rebate checks are mailed early next year, the payment will have the net effect of temporarily lowering the effective tax rate to $1.15.

That would fall short of the $1.16 cut proposed by city councilors Kristen Nye and Reba Trammell. Trammell separately proposes lowering the interest rate to her $1.10.

Chief Executive Lincoln Sanders added that the five-cent rebate was larger than the administration had originally proposed, but was the consensus reached by the six council members who co-sponsored the proposal. .

“Inflation affects us too. Fire department jobs that were on an $8 million budget are now $12 million. We need to spend $2 million on winter shelter.” It’s on the rise, he said. The city is also facing large deferred maintenance costs.

Sanders also worries about the risk of a recession. That would lower property values ​​and reduce city tax collection.

Stoney said Richmond is still grappling with the financial implications of the 2008 Great Recession.

The one-off refund could repeat next year if it ends in the black this year, he said, and is part of a long-term effort to ease pressure on the city’s taxpayers. .

Stoney wants to try again for general assembly approval on a proposal to freeze long-term resident rates. Long-term residents are those who risk being forced out by their neighbors as property values ​​rise due to an influx of new residents.

That could take time as the state constitution would need to be amended. This would require his approval on two separate General Assembly votes in two different years, as well as a statewide referendum.

As a result, it’s too early to tell who will be eligible for such a program, Stoney said.

He also wants to better align the timing of property appraisals with the city’s budgeting process.

Currently, during the first few months of the budget year, city officials and council work on predictions about land values, but actual amounts are subject to annual review by city assessors. You won’t know until you’re done with the next. autumn.

That’s a tall order for budgeters, but Stoney says the city can end the year with a big surplus. A better alignment means the tax bill better reflects the city’s needs, he said.