HB 1010 (Durant), as introduced, would have imposed new restrictions on the local budget process by requiring a referendum if growth in real estate assessments would generate more than 101 percent of the previous year’s collections and the locality did not reduce the tax rate accordingly. VACo opposed the original version of the bill.
As amended in the House Finance Committee, the bill now addresses only the notice for the public hearing that is required to be held if the governing body does not reduce the tax rate to generate no more than 101 percent of the previous year’s real property tax levies. The substitute version (which may be viewed at this link) would require those localities that conduct reassessments more than once every four years to publish the notice of this hearing on a different day than the notice of the annual budget public hearing, and in a separate notice from the notice of the annual budget hearing. Proponents of the bill argue that this separate notice would provide more clarity to taxpayers regarding the process of setting the tax rate.
VACo would appreciate members’ feedback on the amended version of this bill.
VACo Contact: Katie Boyle