Two rate Bill Passed for Roanoke, Virginia

Nadine Stoner

[Reprinted from GroundSwell, 2003]

Joshua Vincent, Director of the Center for the Study of Economics, Philadelphia, reports success from efforts by himself, Dr. Nicolaus Tideman of Virginia Polytechnical Institute, and Fairfax, VA Councilor Anthony Coughlan. Virginia Senate Bill 1095 passed the Senate 39-0 on January 20, 2003, and passed the House 79-18 on February 12. It now awaits the Governor's signature. The bill authorizes the City of Roanoke to impose a tax rate on improvements to real property that is equal to or less than the City's tax rate on the land upon which the improvements are located.

The Virginia Department of Taxation's 2003 Fiscal Impact Statement about SB 1095 said: "This bill would have no impact on state revenues" and comments further as follows: "This bill would create a separate classification of real property composed of improvements to real property located in the City of Roanoke. The City of Roanoke would be authorized to tax property in this class at a lower rate than applicable to the land, but not a zero rate. In the 2002 General Assembly Session, the City of Fairfax was granted the same authorization extended by this bill, effective July 1, 2003."

Senate Bill 1095 for two-rate authorization to Roanoke was introduced by Patron John S. Edwards and was cosponsored by Delegate Woodrum. The bill amends Virginia State Statute 58. 1-3221.l by adding the City of Roanoke to the Amendment to the Code of Virginia legislated in 2002 that enabled the City of Fairfax. (See Jan.-Feb. 2002 GroundSwell)

Senate Bill 1095, relating to the real estate tax rate on improvements and real property in the City of Roanoke, is reprinted below.

"Be it enacted by the General Assembly of Virginia:

"1. That SS 58.1-322.1 of the Code of Virginia is amended and reenacted as follows:

"SS 58.1-3221.1. Classification of land and improvements for tax purposes.

"In the City of Fairfax and the City of Roanoke improvements to real property are declared to be a separate class of property and shall constitute a separate classification for local taxation of real property.

"B. The governing body of the City of Fairfax and the City of Roanoke, after giving public notice and an opportunity for the public to be heard in the manner provided in SS 58.1-3007, may levy a tax on the property enumerated in subsection A at a different rate than the tax imposed upon the land on which it is located, provided that the rate of tax on the property described in subsection A shall not be zero and shall not exceed the rate of tax on the land on which it is located.

"C. Nothing in this section shall be construed to permit the City of Fairfax or the City of Roanoke to alter in any way its valuation of real property covered by this section."