The Virginian-Pilot 
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, February 28, 1996           TAG: 9602280421
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Short :   45 lines

PROPERTY ASSESSMENTS GOING UP FOR 58% OF BEACH RESIDENTS THE AVERAGE HOME'S ASSESSED VALUE WILL INCREASE ABOUT 2%.

Two-thirds of city residents will get good or bad news in their mailboxes later this week.

But even those who receive higher tax assessments should take heart: it just means they are sitting on more valuable property.

The city assessor's office is mailing out assessments Thursday to all property owners whose assessments have changed from last year.

Nine percent will receive lower assessments and 58 percent of property owners will get higher assessments, according to a report released Tuesday by city Real Estate Assessor Jerald D. Banagan.

Overall, the average assessment for residential property will increase by 2.12 percent and the average assessment for commercial-industrial property will rise by 1.91 percent.

Tax assessments for 42 percent of landowners will either decline or remain the same as last year; 14 percent of landowners will see an increase of 5 percent or more because of a jump in their property's assessed value. Single-family homes will see the highest jump, according to the report, with high-rise condominiums enjoying a slight drop overall, and commercial and office uses increasing 2 percent and 4 percent respectively.

Nearly 1,600 residences were built last year, and more than 2,300 owners added to or remodeled their properties. The increased values mean the city will take in 3.4 percent more this year than last, without raising taxes. If the tax rate is unchanged, the real estate tax will generate just under $215 million this year, according to Banagan's report.

``In general, it's similar to last year,'' Banagan told the council. The main difference, he said, is that the assessment increases are fueled by rising property values, instead of new construction.

Also Tuesday, the City Council delayed by one week a presentation about a proposal to build a soccer stadium near Princess Anne Park that could eventually house a major league soccer team.

KEYWORDS: PROPERTY ASSESSMENTS VIRGINIA BEACH by CNB