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Spotsy alters tax rebate
Spotsy supervisors vote against 100 percent tax break for energy-efficient buildings

Date published: 8/11/2010

BY DAN TELVOCK

More than 150 residents, builders and business owners packed a Spotsylvania County Board of Supervisors meeting last night urging supervisors not to repeal a five-year real-estate tax on energy-efficient buildings.

Some people threatened to sue if the county did not grandfather in current applications and those homes already approved. Despite the pleas, supervisors decided against providing the 100 percent tax break.

The chief reason supervisors brought this to a public hearing is because of the loss in real-estate tax revenue. The exemption cost the county $61,000 in real-estate tax revenue in fiscal year 2010 that ended in July. But the loss may be more than $1 million for this fiscal year if the ordinance isn't changed, said Commissioner of Revenue Debbie Williams.

Spotsylvania Regional Medical Center inquired about the tax benefit, which means the county could have been out $600,000 in real-estate taxes each year if the hospital qualified.

Suzanne Wilson said her family sold their Smoketree subdivision home in February and planned to move closer to her work in Stafford County. When a friend told her about the real-estate tax credit for energy-efficient homes in Spotsylvania, the family reconsidered. "It sold us. If it weren't for this incentive, we indeed would most likely be Stafford County residents," she said.

Linda Davidson, of Old Mill Lane, said Williams sent her a letter stating her application was in jeopardy if the ordinance was changed or repealed. Several other residents said they got letters from Williams stating their already-approved home or business is now in jeopardy to get the tax break.

Supervisor Gary Skinner said county staff had nothing to do with sending the letters and that Williams is an elected official. The accusations, and Skinner's comments, led Williams to explain why she sent the letter, briefly arguing with Skinner. "I felt I was obligated to contact those people with a second letter that there was the possibility this ordinance would be repealed. I thought I was doing the right thing," she said.

Kaeser Compressors President Frank Mueller said he expanded the business with an energy-efficient certification in Spotsy because of the benefit. "Changing the rules in the middle of the game sends a wrong message."


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Supervisors decided on a 5-1 vote to amend the ordinance that allows a five-year 100 percent real-estate tax break for energy-efficient buildings.

Qualified homes and businesses now will pay a special real-estate tax rate of 53 cents per $100 of assessed value worth up to $300,000. The regular tax rate of 86 cents would come into effect for the value above $300,000. This tax break would be in effect for 2011, 2012 and 2013, instead of five years.

Supervisor Gary Jackson voted against the change and Supervisor T.C. Waddy was absent.



Date published: 8/11/2010



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Yeah (posted by Fredtastic , Aug. 11, 2010 10:32 pm)    0 likes
All those rich HVAC and insulator contractors sure got a raw deal - doing work for those homeowners. Its not just about the homeowners - its about rejuvinating a horrible economy and putting regular people back to work. Who the heck do you think provides jobs for people???

yeag it worked.... (posted by error404 , Aug. 11, 2010 9:23 pm)    0 likes
....but the taxpayers wound up paying for all those "green" systems the rich can certainly afford.

It worked (posted by Fredtastic , Aug. 11, 2010 1:37 pm)    0 likes
One thing to keep in mind though is that this incentive worked very well. It energized a down housing market by putting builders, plumbers, insulators, contractors, etc to work by giving homeowners and business owners a reason to spend $. While a 5 year exemption is generous, the county did receive benefits from this program that are harder to quantify (and easier to ignore). It wasn't a bad idea, but does need some tweaking. But for goodness sake, grandfather these people!!! There IS a way.

Reality Check (posted by c1eallen , Aug. 11, 2010 1:22 pm)    0 likes
I keep hearing about the loss the county will incur, 61k here maybe as much as a million there. If you listened carefully last night one of the board members stated that they were on track to collect 102mil in real-estate revenue this year and that was above last year?s 96mil in revenue. So where is the loss???

In Nov. 2007 (posted by Givemeabreak2M , Aug. 11, 2010 11:52 am)    0 likes
Supervisors JACKSON, LOGAN, WADDY, MARSHALL, YAKABOUSKI and CONNORS supported the 100% tax elimination for five years. Now Supervisor Jackson has voted against the reduction with no reason given ( was the reduction to much or not enough, did he want to eliminate the program all together?). Supervisors Marshall, LOGAN, and Connors who supported the 100% tax elimination for five years in 2007 have now changed their minds. NO real reason was given!! Supervisor Pitts hit the nail on the head (way to generous).

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