Budget language introduced at the request of VACo and VML directs the Commission on Local Government to undertake a review of the effects of mandatory property tax exemptions on local finances, to include potential ways to mitigate these impacts on localities. VACo and VML, working with member localities, encouraged the adoption of this budget language during the 2021 legislative session in order to develop greater awareness of the effects of the series of Constitutional amendments considered since 2009 to provide real or personal property tax exemptions to disabled veterans, their surviving spouses, and the surviving spouses of servicemembers who are killed in action, with the goal of developing potential mechanisms by which the state could assist localities with the financial impacts of these tax exemptions. (Legislation that would have provided for a state subsidy to localities to assist with lost revenue for real property tax exemptions was considered in 2020 but was unsuccessful, due in part to concerns that the scope of potential assistance was unknown.) A report is due November 1.
Staff to the Commission held a meeting with a small group of stakeholders on April 28 to discuss a proposed workplan for the study. A key component of the study will be a survey of localities, which is planned to be distributed in June. In addition, as part of the study process, the Commission is seeking public comments on this issue at its upcoming meeting on Thursday, May 13, 2021, at 11 a.m.
Interested parties may pre-register their request to testify by emailing cody.anderson@dhcd.virginia.gov. Written testimony will also be accepted until 5 p.m. on Thursday, May 20,, 2021. Written testimony can be emailed to cody.anderson@dhcd.virginia.gov or physically mailed to the following address:
Virginia Department of Housing and Community Development
Attention: Cody Anderson
600 E. Main St.
Suite 1100
Richmond, VA 23219
Further details are available at this link.
VACo Contact: Katie Boyle