Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 20, 1991 TAG: 9103200232
SECTION: CURRENT PAGE: NRV1 EDITION: NEW RIVER VALLEY
SOURCE: CATHRYN McCUE NEW RIVER VALLEY BUREAU
DATELINE: BLACKSBURG LENGTH: Medium
The town is proposing to maintain its real estate tax rate at 20 cents per $100 of assessed value for 1991-92.
But, even with the same tax rate, Mr. and Mrs. Average Homeowner will likely pay 21 percent more in property taxes to the town this year.
Montgomery County recently completed its reassessment, done every four years.
As a result, property values in Blacksburg increased an average of 21 percent.
For instance, an average house in Blacksburg was worth $80,000 from the 1987 reassessment. Mr. and Mrs. Homeowner paid $160 annually in town taxes.
After reassessment, their house rose in value to $96,800, a 21 percent increase. This year their town tax bill will be $193.60.
By law, Blacksburg and all Virginia localities must advertise what tax rates in reassessment years would yield no more than 1 percent in revenue over the previous year. The governing body must then vote on the tax rate for the next fiscal year.
For Christiansburg, Town Manager John Lemley said he has not made a recommendation on the town's tax rates.
For Blacksburg, the equalization would result in a tax rate of about 17 cents per $100, based on preliminary figures, said Town Manager Ron Secrist.
"If we were to equalize the rate, then we'd have to begin looking at further reducing expenditures . . . which means reduction in services," he said.
Council's wish, however, was to maintain delivery of existing services, despite a drop in state aid and other income due to the recession and cautious consumer spending.
The proposed budget includes $1,548,800 in real estate revenue for 1991-92, compared to last year's revenue, estimated at $1,406,300.
Yet overall, the proposed budget of $8.7 million is 4 percent less than that which is projected for the current fiscal year.
Secrist said he could have proposed raising local consumer-based taxes, such as cigarettes, utilities and meals taxes.
"To do that, in my opinion, would have hit directly the business community," he said, because consumer spending is already down.
Further, the town has maintained a stable real estate tax rate for many years, so tax bills have remained about the same, even though property was increasing in value all along.
In other words, Mr. and Mrs. Homeowner have paid $160 every year since 1987, even though their house increased in value an average of 5 percent a year.
The town's real estate tax revenue balances out in the end, Secrist said. "I contend still that it's not a raising of the taxes. It's a maintaining of the tax rate based on updated property value."
At least one local businessman disagrees.
"They're trying to slip it by as the same rate but it's not. It's a 20 percent increase," said Bill Ellenbogen, owner of Bogen's restaurant and partner in a planned community called Oakton.
He said that Virginia Tech, local businesses, even individuals have all had to cut their spending, while the town is increasing real estate revenue.
"This is not right and people are not aware, or else there would be an outcry," Ellenbogen said. "The town budget should be a reflection of the community it exists in."
Council has scheduled April 9 for a public hearing on the proposed budget, including setting the real estate tax rate at 20 cents per $100.
by CNB