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The terms used by Charlottesville City Council and Albemarle Board of Supervisors when discussing real property taxes and budget is deliberately misleading.  Such is done in order to make raising taxes easier. The truth about the terminology is much more revealing.

"Cutting Tax Rates": The politicians always say they are cutting your tax rate when they consider a rate that is not as high as the prior year's rate. Virginia's law says that the rate is to be set so that 101% of the prior year's taxes are collected unless a public hearing is held after which the governing body decides that a higher rate is needed. Even the advertisement which the City and County publish for the public hearing says that they are considering a higher tax rate.

"Lowering Taxes": The local politicians indicate that taxes are going up because assessments are going up. Yet if it is the governing body which sets a higher tax rate, then they in fact are raising your taxes. Why should you accept a 10% or 20% increase in taxes when the need is not shown?

"Cutting the Budget": When someone asks the governing bodies not to set a tax rate as high as they are considering, they ask where should they cut the budget. There is only a proposal at that point, not a budget. It is not a budget until the governing bodies adopt the budget. Before adopting the budget and providing a higher tax rate, the local body must find that the higher rate is necessary, that is that the increased spending is needed. In short, they must show the need to increase the rate and spending; it is not up to citizens to show how to lessen spending and set a lower rate.

Deliberately Misleading. In short, local politicians deliberately mislead us in order to spend our money without showing a real need. Why do we keep allowing this to be done?

Va. Code Ann. § 58.1-3321

§ 58.1-3321.  Effect on rate when assessment results in tax increase; public hearings

A. When any annual assessment, biennial assessment or general reassessment of real property by a county, city or town would result in an increase of 1 percent or more in the total real property tax levied, such county, city, or town shall reduce its rate of levy for the forthcoming tax year so as to cause such rate of levy to produce no more than 101 percent of the previous year's real property tax levies, unless subsection B of this section is complied with, which rate shall be determined by multiplying the previous year's total real property tax levies by 101 percent and dividing the product by the forthcoming tax year's total real property assessed value. An additional assessment or reassessment due to the construction of new or other improvements, including those improvements and changes set forth in §58.1-3285, to the property shall not be an annual assessment or general reassessment within the meaning of this section, nor shall the assessed value of such improvements be included in calculating the new tax levy for purposes of this section. Special levies shall not be included in any calculations provided for under this section.

B. The governing body of a county, city, or town may, after conducting a public hearing, which shall not be held at the same time as the annual budget hearing, increase the rate above the reduced rate required in subsection A above if any such increase is deemed to be necessary by such governing body.

Notice of the public hearing shall be given at least seven days before the date of such hearing by the publication of a notice in at least one newspaper of general circulation in such county or city. Such notice shall be at least the size of one-eighth page of a standard size or a tabloid size newspaper, and the headline in the advertisement shall be in a type no smaller than 18-point. The notice shall not be placed in that portion, if any, of the newspaper reserved for legal notices and classified advertisements. The notice shall be in the following form and contain the following information, in addition to such other information as the local governing body may elect to include:

NOTICE OF PROPOSED REAL PROPERTY TAX INCREASE

The (name of the county, city or town) proposes to increase property tax levies.

   1. Assessment Increase: Total assessed value of real property, excluding additional assessments due to new construction or improvements to property, exceeds last year's total assessed value of real property by .... percent.

   2. Lowered Rate Necessary to Offset Increased Assessment: The tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusions mentioned above, would be $... per $ 100 of assessed value. This rate will be known as the "lowered tax rate."

   3. Effective Rate Increase: The (name of the county, city or town) proposes to adopt a tax rate of $... per $ 100 of assessed value. The difference between the lowered tax rate and the proposed rate would be $... per $ 100, or ... percent. This difference will be known as the "effective tax rate increase."

   Individual property taxes may, however, increase at a percentage greater than or less than the above percentage.

   4. Proposed Total Budget Increase: Based on the proposed real property tax rate and changes in other revenues, the total budget of (name of county, city or town) will exceed last year's by ... percent.

A public hearing on the increase will be held on (date and time) at (meeting place).

C. All hearings shall be open to the public. The governing body shall permit persons desiring to be heard an opportunity to present oral testimony within such reasonable time limits as shall be determined by the governing body.

D. The provisions of this section shall not be applicable to the assessment of public service corporation property by the State Corporation Commission.

E. Notwithstanding other provisions of general or special law, the tax rate for taxes due on or before June 30 of each year, may be fixed on or before April 15 of that tax year.

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Sample City Advertisement

From 2005

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