Another blog -- "A Tale of Two Burgs" -- links readers to yet another blog that talks about Montgomery County's upcoming real property reassessment.
Should property owners be bracing for higher values, and therefore higher taxes? Can we afford it? Have values truly increased, factoring the economic calamity started in the construction and mortgage industries?
The county covers the cost of conducting these reassessments, currently done once every four years with Blacksburg and Christiansburg using this same data. The tax rates, however, can be changed annually.
If you also live within one of the 'burgs, you pay a premium on top of the county property taxes. Don't own real property? Well, then you pay this tax as part of your rental costs.
If property values go up and the rate remains unchanged, you will be paying more in property taxes.
If the value goes up and the rate is reduced, you may or may not pay more next year than you did last year. Only if your elected officials act -- Board of Supervisors and/or Town Council members -- will the results of a real property reassessment be revenue neutral.
Since local government spending hasn't really been reeled in, yet tax revenues are lower because of the recession we're all struggling out of -- while food, energy and health costs are spiking -- would any reasonable person expect property taxes to remain neutral? Beyond getting 1% of the state sales tax returned, or local meals and lodging taxes -- there are not many options allowed by the State for local governments to generate additional revenue.
Another concern for Christiansburg residents may be relative to nearly 10% of the town's budget being allocated for recreation, including the new aquatic center. Just one bond to allow debt up to $2 Million (for a nearly $18 Million construction project) was approved in 2007 and states that if timely payments aren't made the "Council shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the Town."
This lends one to start thinking not if or when -- but how much -- property taxes will be increasing. Throw that into your new budget, along with higher gas and electric costs, neighbor. See if you can also afford a new membership for recreation -- to burn off some stress.