Tuesday, May 15, 2007
Roanoke property owners encouraged to think green
City council approves a reduction in the tax rate for high energy efficiency.
Roanoke property owners will be paying more real estate taxes in the coming budget year thanks to a greater than 5 percent increase in property assessments.
But starting July 1, property owners can pay less green in taxes by making their buildings more green.
The Roanoke City Council approved a 10 percent reduction in the tax rate for high energy efficiency new or renovated construction that cuts energy consumption by 30 percent. The change was part of the process of approving the $252 million 2007-08 city budget.
Roanoke is the first locality in Virginia to adopt such a policy after the General Assembly made it possible this year, according to City Manager Darlene Burcham. The bill allowing the change was suggested by Roanoke officials.
Councilwoman Gwen Mason gave credit to a former councilman with a conservationist bent who did not seek re-election last year. "To the ghost of Rupert Cutler," she joked.
The regular real estate tax rate of $1.19 per $100 of assessed value, however, didn't change. The city reduced the rate by 2 cents last year -- the first such reduction in six years.
But with assessments increasing, property owners will pay more in taxes. According to the city's calculations, to collect the same tax revenue after recent reassessments, the rate would need to be reduced 6 cents to $1.13.
For example, the owner of a home assessed at $200,000 paid $2,380 in city real estate tax last year. If that property's assessment increased by the city's total of 5.23 percent -- individual properties may exceed or fall below that overall increase -- then the home now would be assessed at $210,460, and this year's tax bill will be $2,504.
Even with an effective tax increase, there was little controversy apparent in this year's city budget cycle.
The most hubbub surrounded an increase in parking fees at city-owned lots. The additional fees will be used to service the debt for a new garage the city is building between Salem and Campbell avenues near the police station.
While hourly rates will be going up in several garages, and monthly rates going up in one garage, it's a $2 flat fee for evenings and weekends that triggered the most letters to council.
Currently, evening and weekend parking is free in all city lots except the Center in the Square garage.
Most of the concern was connected to the city-owned lot in Gainsboro near the Roanoke Higher Education Center, where many students attend school at night. Center officials say the $2 fee might be a hardship for students with limited means trying to educate themselves so they can get a better job.
The council asked Burcham to explore a discounted fee for students parking in that lot. Burcham pointed out in an interview that students are already eligible to pay discounted monthly rate of $17.50 to park in that lot, though very few take advantage of it.
Councilman Sherman Lea voted no on the parking fee increases, one of a handful of dissenting votes during the session. Councilman Brian Wishneff also voted against a few items, including the budget for capital projects, which he said he did in ongoing protest of the way the construction contract for the new William Fleming High School was procured.
Finally, the council approved a measure that will eliminate a sticky element of the personal property tax process, namely the city decal.
Beginning in 2008, city vehicle owners will not have to place a decal on their windshield to prove they paid their personal property tax. But they will still have to pay the $20 fee, now called a licensing fee. Eliminating the decals will save the city $30,000, Burcham said.
City residents currently in the process of paying their personal property taxes by May 31, however, must still buy and display a decal until next year.
Roanoke County supervisors made a similar decision in February, also effective in 2008, following suit with more than three dozen local governments across Virginia that have dropped the vehicle decals in recent years.





