C
ity Council President Kristen Nye and Mayor Levar Stoney announced a proposed 4-cent real estate tax rebate for all property owners at a press conference Monday, as well as two new relief programs aimed at low-income and older residents. The announcement comes amidst a heated debate over whether to reduce Richmond's real estate tax rate.

    Councilmember Reva Trammell had previously pushed for a 4-cent reduction in the rate, which has remained unchanged since 2009. However, Nye countered with a proposal to maintain the current tax rate and instead offer a rebate and targeted tax relief. The rebate would return $16 million in surplus real estate taxes from last fiscal year to taxpayers who paid them.

    The proposed RVA Stay program includes a gap grant pilot for low-income residents who spend more than 30% of their income on housing costs, as well as the Richmond Freeze Program, which would exempt homeowners aged 65 or older and permanently disabled from real estate tax increases. Their current tax bill would be frozen based on their home's prior year assessment.

    Trammell maintained that a tax cut, not a rebate, is what residents need to avoid being priced out of the city. She plans to continue pushing for a rate reduction, citing the last rate decrease in 2009 as an example of how it can benefit residents.

    The debate over the tax rate has been ongoing, with council members arguing that reducing the rate would primarily benefit high-assessed property owners rather than those who need relief most. The city is also working to align its assessment calendar with the spring budget season to facilitate a more informed discussion on the tax rate.

    Mayor Stoney emphasized that changing the tax rate now would cut $3.2 million from the current budget and compromise collective-bargaining agreements with city employees. However, he acknowledged that debating fiscal questions is essential for addressing rising costs affecting residents.