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Mayor Proposes $18M Property Tax Rebate from Richmond

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Some monetary help could soon be coming for property owners in Richmond, Virginia. Mayor Levar Stoney recently announced a new program that would give eligible property owners a one-time tax rebate from Richmond of five percent.

Tax Rebate From Richmond, Virginia: What Is It?

Stoney, on Wednesday, proposed a new $18 million property tax rebate program, called “Five Back Program.” This proposal will use the fiscal year 2022 surplus dollars to offer a one-time five percent tax rebate, equaling a five percent property tax reduction.

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For instance, a property owner with a home assessed at $300,000 and a real estate tax of $4,200, would get a one-time tax rebate from Richmond of $175. Eligible property owners would get the rebate in the form of a check. The authorities will mail the checks to the eligible property owners by early next year.

Presently, property owners in the city pay $1.20 per $100 of the property’s assessed value. However, the Five Back Program would effectively reduce the tax rate this year to $1.15. The proposal to provide the property tax rebate comes after voices grew louder to reduce the rate following a 13% rise in the median appraised value of a home in the city last year.

Stoney said that the city council would come up with an ordinance on November 14 to use the 2022 surplus to fund the Five Back Program. Six out of nine council members are the co-sponsors of the Five Back Program, thus, it is almost certain that the council will enact the program when they meet next week.

Why Is It A One-Time Rebate?

city’s property tax rate hasn’t increased in 14 years. The primary objective of this property tax rebate from Richmond is to provide some relief to homeowners from the rising property prices. Also, the rebate would work as an anti-eviction tool to assist the city’s most vulnerable residents to stay in the city.

Since it is a one-time rebate, the tax bills for the property owners will be higher next year. The mayor noted that the city can’t permanently cut the tax rate because doing so would impact the city’s ability to offer core services.

“Our five back initiative strikes the right balance of providing relief to taxpayers while being fiscally responsible in meeting our obligations, maintaining our delivery of services and protecting our city's strong financial standing," the Mayor said.

Stoney, however, is working on gaining approval from the General Assembly to freeze the rates for the long term. Also, the mayor noted that the city would come up with many other property tax system reforms, but added that most reforms would need the approval of the general assembly.

“We will ask the Virginia General Assembly to allow the City of Richmond to offer a long-time owners occupant program or Loop to qualifying long-time property owners,” said Stoney.