SUFFOLK, Va. — A proposed one-cent reduction in real estate taxes in Suffolk sounds like a win, but some neighbors say it does not make a difference as other costs continue to rise.
The proposal comes as the city works through its upcoming budget, which outlines changes to tax rates, fees, and utility costs for the next fiscal year.
According to the proposed budget, the real estate tax rate in Suffolk would drop from $1.07 to $1.06 per $100 of assessed value.
Suffolk resident and businessman Dwight James shared his concerns during public comment, saying the proposed reduction does not go far enough. James said rising water and sewer bills make the tax cut less significant.
"On paper a one cent reduction in real estate tax sounds good but in reality its a shell game," James said.
"Are we really even getting the relief right now? I mean it seems good on paper, but to the household when they’re looking at their bills they don't see anything. All they see is their stuff went up. They don't know, 'Oh the city gave me a one cent tax relief,'" James said.
The city assessor said most neighborhoods saw increases in assessed values, and a one-cent reduction would not fully offset those gains for many homeowners.
For example, a home valued at $384,000 would have a tax bill of about $4,070 under the proposed rate of $1.06. At last year’s rate of $1.07, the same home would have paid about $4,262.
James hopes the city can look at other budget items to cut.
"We got personal property on cars, those can be reduced. Those can be changed. That's stuff that can help out so that the people can see that hey I'm paying my taxes every year, how is the city willing to help me out," James said.
During the meeting, Director of Finance Stephanie Wells said the rate would have needed to drop "slightly more" to be revenue neutral. The city assessor said that would have been closer to a 2.7-cent reduction.
The budget is not yet final and is scheduled for adoption on May 6, when the city will hold a public hearing on the tax rate and reassessment.
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