Charlottesville City Council voted against a new homeowner tax-deferral program, citing high administrative costs and a desire to concentrate on other tax-relief programs. Such a tax deferral would have allowed homeowners the option to postpone paying a portion of their taxes until they have sold their houses.
At an August 1 work session, councilors expressed concern that lack of interest forced Norfolk to abandon a similar pilot program after one year. A tax-deferral program for senior Charlottesville residents was recently discontinued by Council after a lack of interest, according to the city treasurer.
Kevin Lynch, the lone supporter of the program, argued that even if nobody takes advantage of the tax-deferral initially, it would be beneficial to have the infrastructure in place for future use. He said the program would assist residents who are under pressure to sell their homes because of a steady increase in their taxes.
"Half the people in Charlottesville have seen their tax bill double," Lynch said at the meeting. "Some people can handle that, some people can’t."
The program’s $50,000 administrative price tag caused a majority of the councilors to hold off approval until more residents are qualified for the tax deferral. Eligibility would have been based on yearly tax rates and assessments. Councilors David Norris and Julian Taliaferro said they would rather see this money go into existing tax-relief programs.
Staff was instructed by Council to measure interest in a tax-deferral program in the annual budget survey. If there is sufficient interest, Mayor David Brown said Council would reconsider the program next year.
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