Break needed for taxpayers

As the Dow swings and the economy bends to the point of breaking, Augusta County property owners contemplate the next slap, notices of reassessment, which could send their tax bills soaring by a third or more. That’s how much values increased in the recently completed reassessment, which would leave the owner of a home priced at the median value of slightly less than $200,000 paying almost $500 more in annual taxes. Well, thanks for that.

Pastures Supervisor Tracy Pyles has a better idea, one for which he will argue tonight. He wants to delay the reassessment by two years. In addition to the uncertainty associated with the economy – driving rises in local unemployment – property owners and other consumers confront rising costs at virtually every turn, and even the recent drop in gas prices could be only temporary.

Virginia reassessment law includes a windfall provision that requires supervisors to initially set the tax rate so that real estate revenues increase by just 1 percent over the previous year. However, the option remains for officials to adjust that rate, following a public hearing. This frequently translates to officials passing a reduced rate that still allows them to collect more money based on increased home values.

Higher tax bills would feel like a stomp on the fingers of some Augusta property owners already struggling to maintain their grip on household budgets squeezed to the point of bursting. Pyles further contends that by the time reassessments take effect Jan. 1 the values could be outdated, given the local markets’ weakening. And, of course, he says, the county’s board of assessors should brace for a torrent of appeals.

Assessors counter that Pyles’ plan would cast into the trash heap the time and money invested over the past 18 months completing the current reassessment, and that staff would only have to start the work anew in six months. That is indisputable. Assessors additionally argue that assessment values likely would remain close to fair value. That is less clear. Local prices have lagged behind the national collapse, which could make further softening likely.

Another concern had been raised over the legality of a delay, but that has been rendered moot. Augusta is required under state law to conduct reassessments every four years. The state’s hammer for communities that fail to reassess is that it can withhold profit shares from Virginia’s Alcoholic Beverage Control agency. The amount would be niggling, and the state would carry some public relations risk in punishing counties seeking to shield taxpayers from increased cost amid financial crisis. We would certainly take notice.

Of course, as Chairman David Beyeler implied during Monday’s meeting, supervisors do not want for other options to reduce the pressure of government’s hand on property owners. Supervisors could cut the tax rate, currently 58 cents for every $100 of assessed value. Reducing the rate by roughly 20 percent to 46 cents would mean that the owner of a home priced at the median in 2005 would face a tax bill of $1,212, just $63 higher than the current amount. Acting in such a fashion would demonstrate supervisors’ grip on the reality their constituents face.

This much strikes us as clear: With the economy adrift, property owners battling to stay afloat amid the waves and skyrocketing consumer prices adding burdens, government should be compelled to tighten spending and limit its weight on taxpayers’ shoulders. Pyles is right to have raised the subject and right to continue the argument, even to the irritation of his fellow supervisors. We urge him to press the issue tonight.

Either a delay or a pledge to minimize the impact through a reduced rate is in order. Property owners who agree would do well to gather at 7 p.m. today at the Government Center to plead their case. Or else they might feel a deeper pinch the next time the tax man comes.