Sales-tax revenue may save Spotsylvania homeowners

Increase in sales-tax revenue has Spotsylvania supervisors hoping to cut real-estate taxes

Date published: 3/26/2006

By GEORGE WHITEHURST

If Spotsylvania residents don't face a higher tax rate on their homes this year, they can thank the county's recent burst of commercial development.

The proposed budget for the fiscal year that begins July 1` estimates that local sales-tax collections will jump by 28 percent this year--to $17.6 million, up from $13.8 million.

As a result, a majority of supervisors appear inclined to lower the real-estate tax rate.

"It's those increased sales-tax revenues that have led me to believe that we don't need a tax increase at all this year," Supervisor Vince Onorato said last week.

Supervisor Chris Yakabouski argues that sales-tax revenue plus rising property values make it possible for the supervisors to provide actual real-estate tax relief.

With the average Spotsylvania home now worth $350,000, the supervisors would have to cut the tax rate to 62 cents per $100 of assessed value to offset the sharp rise in property values since 2004. Yakabouski would love to see a rate of less than 62 cents.

"With our commercial increasing so much, I think we can give some relief to our citizens, and we need to find a way to do that," he said recently.

County Administrator Randy Wheeler is recommending a 65-cent tax rate. Two pennies of the increase would repay debt the county will acquire in the near future, while 1 cent would bulk up government operations.

That plan isn't flying with Supervisor T.C. Waddy, who, like Yakabouski, hopes to provide some tax relief.

"If there's any change, I'm going to go below 62," he said. "I'm not going for 65. There's so many people who just can't afford all this tax increase."

Supervisor Emmitt Marshall sounded a note of caution on actual tax cutting.

"It may be possible. I don't know, though," he said. "I know that if you go too low this year, next year you may have a tremendous increase. It's my hope that we can set the rate at 62 cents."

Supervisor Gary Jackson, an ardent opponent of tax increases, did not return repeated phone calls seeking comment.

Board Chairman Hap Connors said it's premature to pick a tax rate, though of the seven supervisors he appears most open to Wheeler's proposal.

Want to speak out? Spotsylvania County's Board of Supervisors will hold a public hearing on its proposed budget and real-estate tax rate at 7:30 p.m. Thursday at the Courtland High School auditorium.

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Date published: 3/26/2006