A majority of Spotsylvania County supervisors expressed concerns last night about raising the personal property tax rate by the amount recommended in the proposed budget.
But they voted to advertise the rate at the recommended level, though they can pass a rate later that is lower.
Interim County Administrator Doug Barnes recommended supervisors increase the personal prop- erty tax rate on cars, trailers, boats, motorcycles and RVs from $5 to $6.33 based on 50 percent of the assessed value of the property. He said property values have declined 21 percent. Business vehicles pay 100 percent of the rate.
If this proposal is approved, a majority of county residents will see an increase in their bill, some as much as $90 or more. But 30 percent will see a decrease in the bill.
This proposal equalizes the tax rate, which means the county brings in the same amount of revenue as it did this current year. After advertising the rate, supervisors cannot increase the rate without additional advertisements and another public hearing.
The proposed budget
Supervisors' comments during the budget work session worried Sheriff Howard Smith and School Board Chairman Gil Seaux. They said they realize that any additional cuts in the county budget will likely come from their departments.
"I don't know what else I can cut," Smith said, after supervisors discussed the proposed $217 million fiscal year 2010 budget.
Supervisor Hap Connors failed to win support to advertise a higher real estate tax rate. Supervisors unanimously decided to keep the real estate tax rate at 62 cents and try to equalize that rate at possibly 78 cents next year.
Connors said he is anticipating more economic trouble for the next budget because home values have dropped. "I am wondering if we should be advertising a higher [real estate] tax rate knowing full well we will have to do something next year to fix it," he said.
But supervisors Gary Jackson, Jerry Logan, Benjamin Pitts and Emmitt Marshall rejected Connor's idea.
Marshall said he does not want to add financial burdens on residents if it may not be necessary. "There are some signs that the economy could be on the verge of turning around a little bit."
Jackson agreed with Connors that it is unlikely the economy will improve next year. But Jackson's mind-set was to cut government spending. "I think we need to be prepared for this to continue," he said about the economic downturn. "I am willing to support advertising these rates, but even this year it is my desire to make an effort to hold these rates at [the level] it is now, if not even lower."
One penny added to the personal property tax rate equals $66,000. Pitts said he wants supervisors to reduce the proposed increase, even if by a few pennies. He said the general public is expecting government to do less in this economic downturn.
Connors said equalizing the personal property tax rate returns $9 million in lost revenue to county coffers. Cutting the proposed rate increase means less for public safety, schools and social services.
"I just hope we have an honest discussion on that going forward," he said.
Dan Telvock: 540/374-5438
Email: dtelvock@freelancestar.com