Summary as introduced:
Real estate tax; limitation on tax rate. Provides that an annual assessment, biennial assessment or general reassessment of real property may not result in more than a 5 percent increase in the total real estate tax levies for a county, city or town, with 1 exception.
The bill also provides that a county, city or town may not set its real property tax for any tax year at a rate that would produce more than 105 percent of the previous year's total real property tax levies for such county, city or town, with 1 exception. The exception would allow a locality to set its property tax rate at a rate not to exceed the rate of population growth plus the rate of inflation in the locality for the immediately preceding year.
The average tax increase on individuals would not exceed 5 percent. However, some taxpayers could be above the average while others could fall below the average.
Under current law, (i) the annual growth rate in a locality's total real estate taxes from an annual assessment, biennial assessment or general reassessment is not capped, provided the locality holds a public hearing in regard to its real property tax rate; and (ii) there is no cap on real property tax rates.
01/14/03 Senate: Presented & ordered printed 039059510 pdf | impact statement
01/14/03 Senate: Presented & ordered printed 039059510
01/14/03 Senate: Referred to Committee on Finance
02/04/03 Senate: Left in Finance
02/18/03 Senate: Letter sent to Jt. Sub. on VA. Tax Code