Richmond real estate tax rate to remain at $1.20

Richmond's real estate tax rate will remain at $1.20 next year, the highest rate in the region even though the mayor's proposed 2010 budget is $26 million less than the current year's budget.

"I do not think we would be responsible if we cut the budget any more," Council President Kathy C. Graziano said before calling for a vote last night. "It will be difficult to balance even at $1.20."

The City Council voted 7-2 to keep the real estate rate at $1.20 instead of cutting it to $1.18 per $100 of assessed value. The two no votes came from Councilman Bruce W. Tyler and Councilwoman Reva M. Trammell.

Councilman E. Martin Jewell noted that the city real estate rate has dropped from $1.43 in 2000 to the current $1.20. He suggested appealing tax assessments that increase more than 13 percent, which he said has had a 61 percent success rate. City real estate assessments increased an average of 1.4 percent this year.

Tyler, who represents the West End area with the highest assessments in the city, said the average city house is assessed at $195,000, which would bring a tax bill of $2,340 at the $1.20 rate. The same house would be billed $485 less in Chesterfield County or $604 less in Henrico County, he said.

"It hurts us. That's about half a mortgage payment," he said. "We are in tough times. I don't know of a single person who has not been touched by this recession."

Only four residents spoke about the real estate tax rate, and none favored $1.20.

Steve Rossie, who lives in a condominium on the Boulevard, said his assessment has more than doubled in five years. Previous reductions in the tax rate have left him still paying higher bills.

"If you want people to move to the city, you have to be competitive on tax rates," he said. "Lower the price of living here."

Josie Linen described her West End tax burden as "very onerous. I feel like I'm only renting my house. . . . Older people shouldn't be taxed out of their houses."

Silver Persinger proposed a progressive income tax instead of a real estate tax.

Jewell said city revenue is down $21 million because of the recession.

"No one's offering us any stimulus money to fill the holes," he said.

Contact Katherine Calos at (804) 649-6433 or .