By DAN TELVOCK
If Spotsylvania County supervisors equalize the real estate tax rate this April, almost 60 percent of residents will see no change or a decrease in their tax bills.
That's a message Commissioner of Revenue Debbie Williams will present at tonight's Board of Supervisors meeting, if it is not canceled by another snowstorm.
Reassessment notices were mailed a week ago. Residential assessments dropped 28.2 percent. Commercial assessments increased 0.29 percent.
Overall, Spotsylvania County's total tax base declined by about 23.5 percent.
County Administrator Doug Barnes will present the fiscal year 2011 budget on Feb. 23. He has told supervisors that he will present a budget with an equalized tax rate.
An equalized tax rate means the real estate levy is adjusted so that the county generates the same revenue as it did in the prior fiscal year. The current real estate tax rate is 62 cents per $100 of assessed value. Based on the new assessments, an equalized tax rate is 83 cents.
Williams said that means 58.5 percent of residential taxpayers will see no increase, and even a decrease, in their real estate bills.
About 41.5 percent will see an increase in their bill. Of those who will see an increase in their bill, slightly more than half will pay less than $50 extra in real estate tax.
Without knowing where a person lives, Williams couldn't easily explain why a home assessment increased in this economy.
A homeowner living in Lee's Parke reported paying taxes on land valued at $120,000 and a supplemental payment of $91,000 for the home built in July 2009. The new assessment showed the land value dropped to $75,000 and the house value increased to $141,000, for an overall total of $216,000.
One possible reason for the increase is that this home is near the Spotsylvania Regional Medical Center, expected to open this spring. Homes near the hospital have become prime real estate for employees who want to live close to work.
Williams said her office updated computer software that allowed appraisers to use comparable sales all the way to the end of December, which is something they've had trouble doing in the past.
"We wanted to make sure we carried it all the way through this time," she said.
Ed Tolley, a commercial appraiser for the county, said commercial land stayed flat, but the building values increased.
Despite numerous empty commercial buildings and business closings in Spotsylvania County, he said most owners are still getting rent from the businesses that occupied the buildings.
He said when assessing commercial property, he reviews the cost, sales comparison and income the building generates from leases. An investor that is considering buying a commercial building generally looks at the leases to determine the income the building generates, which helps bring a value to the building.
Tolley said even though an office or commercial building is empty, it is still likely generating lease revenue.
Couple that with some major new commercial construction, and it helps explain the slight increase in assessments.
For example, the Spotsylvania Towne Centre expansion and construction of the Spotsylvania hospital have helped boost the commercial assessments.
Jud Honaker, president of commercial development for the Silver Cos. of Fredericksburg, said he believes commercial property was assessed too low to begin with and caused the slight increase in a depressed economy.
Dan Telvock: 540/374-5438
Email: dtelvock@freelancestar.com
The reassessment appeal form and instructions are online at spotsylvania.va.us/departments/cor.
Appeals must be postmarked or hand-delivered to the Office of Real Estate Assessments at 9104 Courthouse Road by 4:30 p.m., Feb. 22.
Call the Assessment