Though the rest of Central Virginia’s housing market has slowed, Charlottesville apparently didn’t get the memo. The local real estate market is healthy, and assessments, just mailed to homeowners on January 31, went up again, showing Charlottesville residents the downside of living in one of America’s most desirable cities.
According to the City Assessor’s office (www.charlottesville.org), property values rose slightly less than last year, but inflated an average of 14.3 percent across town. (Last year, assessments rose 15.9 percent.)
“Charlottesville still remains a hotbed. For the region, 2006 [assessments were] less than 2005, but for us it was a better year,” says City Assessor Roosevelt W. Barbour. “…We’ve been selling the city very well, so of course the assessments go up. But someone has to pay the price.”
It’s homeowners who are feeling the pinch. Though home values are escalating, many point out that you can’t eat net worth.
The City’s real estate tax rate is currently $.99 per $100 of home value. Mayor David Brown says City Council has not yet received an estimate of how much extra revenue the rise in assessments will bring in, but that Council is certain to evaluate the tax rate.
The problem is, “when we lower the tax rate to give $100 or $200 relief to a homeowner, we end up giving $20,000 relief to Barracks Road Shopping Center,” says Mayor David Brown. “…Unfortunately we can’t exactly target homeowners if assessments have risen.”
A bill that got little traction in the General Assembly would give localities the power to tax businesses and homeowners differently. Brown is in support of such a measure, but says it won’t pass this year. “It would be good for us to have the option of being able to recognize spiraling assessments on home-owned property,” says Brown.
For the moment, the City has programs to help low-income homeowners and plans to do more for those who can’t pay escalating real estate taxes. But average citizens have little recourse but to call Barbour’s office.
“The phones have been ringing. It’s normal,” Barbour says. “Monday [after the assessments were released] will probably be our biggest day because [people] have the weekend to think about it.”
RISING TIDE
Average city assessment increases, by neighborhood
University/Venable: 27%
10th & Page: 20%
Belmont: 15%
Downtown: 14%
JPA: 12%
Woolen Mills: 10%
Locust: 9%
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