City working on property tax relief

New legislation from the General Assembly gives Charlottesville’s City Council more power to assist local homeowners with skyrocketing property taxes. Councilors are currently working out the details of the new tax relief program—so far, though, local homeowners shouldn’t expect too much help.
Sponsored by David Toscano, Charlottesville’s Delegate, legislation passed this year allows the City to dole out grants to low and moderate-income homeowners who live in their houses, and it gives the City authority to grant them tax deferrals. The General Assembly passed the bill in February 2006, and the law will take effect July 1.
In a May 11 work session the Council proposed several eligibility criteria, which it will vote on June 5. To qualify, citizens must own (and live in) their house as of January 1, 2006. The house must be assessed at less than $238,200, with a household income of no more than $50,000. Councilors say they want to keep the program simple, especially in its first year, so the City assistance  will be delivered as grants of up to $250.
Of course, a $250 grant looks paltry compared to the $2,300 property tax for a house valued at $238,200; even a $120,000 house—a bargain-basement price in the city—generates an annual tax bill of $1,188. Councilor Kevin Lynch described the program as a temporary solution; a long-term solution, he says, involves reducing residential taxes.—Amy Kniss