Richmond homeowners will get a tax rebate check next year
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Richmond city homeowners will get a one-time real estate tax rebate check sometime early next year.
Why it matters: They won't be getting a permanent real estate tax rate reduction.
The big picture: City Council voted five to four this week to reject council member Reva Trammell's proposal to drop the city's real estate tax rate from $1.20 to $1.16 per $100 of assessed property value, The Richmonder reported.
- Instead, council approved the three targeted relief initiatives Mayor Stoney proposed last month, including a one-time real estate tax rebate of 4 cents per $100 of assessed property value for all property owners.
- Both would be around $150 on the average residential tax bill.
Between the lines: The Tuesday night vote brought to a close council's monthslong debate over lowering city's real estate tax rate, which is one of the highest in the region.
- Proponents of cutting the rate argued that local homeowners, especially lower-income residents, were struggling to stay in their homes amid soaring property values and therefore tax bill increases.
- Opponents, including Stoney, were concerned that an across-the-board rate reduction would disproportionately benefit the city's wealthiest residents while bringing in less for the city's coffers.
Zoom in: In addition to the rebate, the RVA Stay proposal council approved also includes a monthly stipend grant pilot for low-income renters and owners, plus freezing real estate tax bills for older and disabled homeowners.
- The grant pilot will give up to $200 a month to renters and homeowners who spend more than 30% of their income on housing and make 80% or less of the area's median income (which comes out as $61,800 or less for a single person, and $70,600 for a two-person household).
- The Freeze Program will "freeze" the real estate tax assessment of homeowners 65 years or older or disabled with a household income under $125,000 and net worth under $750,000.
- Applications for both programs, as well as rebate check disbursement, should open in January.
What we're watching: Trammel vowed to keep fighting for an overall real estate rate reduction next year.
- By then, three new city council representatives will be sworn in.