Virginia Beach: Hang Onto Your Wallets

How to ruin an otherwise lovely early spring-like weekend, Virginia Beach-style:

Send out real estate assessments that show double-digit increase in the value of property (that’s a good thing, by the way) and a huge jump in taxes. 

That’s not good.

Yep, many of us opened our mail on Saturday and wished we hadn’t.

While it’s nice that the city assessor believes property values are soaring, we all know what that means: The city council will quietly vote to “keep” the tax rate the same as last year and the year before, and then pat themselves on the back, crowing:

WE DIDN'T RAISE TAXES.

Ahem. Yes they did. They do it every year, just a little sleight of hand

Let me explain: If your assessment rose 20% - as mine did - and the council votes to keep the rate at 99 cents per hundred dollars of assessed value rather than cutting it to a rate that would keep revenue about where it was last year - your taxes are going up. 

A lot!

Look, rising assessments are a good thing. For most of us, our homes are our biggest assets. No one wants their asset to lose value.

If your stocks go up but you leave your money in the stock market, you aren’t taxed on unrealized gains. You’re taxed when you sell shares.

But when assessments skyrocket and you stay in your home, you’re being taxed on your “wealth.” In the parlance of the world of finance, you’re paying taxes on unrealized capital gains. 

“Your assessment has nothing to do with your ability to pay your taxes,” explained former councilman John Moss, noting that when real estate taxes go up, so do rents, making the dream of “affordable housing” in the Resort City even more elusive.

“The city is lowering residents’ living standards with increased taxes,” Moss added.

Good point, John. The taxpaying schlumps of Virginia Beach miss you. Now more than ever.

When I Tweeted about my real estate assessment and the alarming tax estimate that came with it on Saturday, a slew of residents chimed in with their rates of increase.

The winner: Someone who Tweets under the name Jagsfan72 who said he (or she) got a 26.6% increase in assessed value.

Excellent if Jagsfan72 is ready to sell. If not, the city’s about to pick his pocket. 

And for what? 

A surf park a block away from the ocean? To pay off the family of a man who was related to Pharrell Williams and was shot to death by a police officer, who acted legally? To rebuild three schools at a cost of $714 million (and only two bids)?

Worse, after the cronies in town managed to get budget hawk Moss off council in the last municipal election, there won’t be anyone in the meetings raising a ruckus about the rape of the residents and trying to goad his colleagues into lowering the rate. 

When we spoke by phone last night, Moss pointed out that the city is constantly boasting about how healthy the economy is and how tourism is booming. 

Ever wonder why all this good economic news never seems to translate into relief for residents?

“The governor managed to reduce taxes,” Moss pointed out. “The city ought to be able to do what families do: Live within their means.”

There’s a note at the bottom of the city chedry assessment letter that’s worth noting: 

“As of the date of this notice the real estate tax rate for FY2023/2024 has not been established, therefore the estimated annual tax levy and percentage change for the new assessment is a projection based on the FY2022/2023 tax rate. Tentatively, a public hearing before city council to discuss the real estate tax rate has been scheduled for April 25, 2023 at 6 p.m. in the city council chambers.

There’s only one way to stop the madness: Show up and tell these politicians to stop gaslighting the public and start cutting the tax rate. 

Mark your calendars.