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Virginia Beach Proposal to Split Tax Rates for Businesses and Homes Suffers Setback

Strategic Insights

— 1 min read

The proposal to create different tax rates for business properties and homes in Virginia Beach has been abandoned due to public outcry from local business leaders. City Councilwoman Rosemary Wilson, who had pushed for the split rates, removed the item from the city's Community Legislative Agenda after receiving strong opposition. The Hampton Roads Chamber of Commerce and the Virginia Beach Hotel-Motel Association were among those who spoke out against the proposal.

Key Takeaways:

  • The proposal to introduce bifurcated tax rates in Virginia Beach was withdrawn after opposition from local business leaders, including the Hampton Roads Chamber of Commerce and the Virginia Beach Hotel-Motel Association.
  • City Councilwoman Rosemary Wilson removed the item from the city's Community Legislative Agenda.
  • The proposal was expected to benefit residential property owners, but would have increased taxes for businesses, including those already paying personal property taxes.
  • Business leaders argued that separate tax rates would create disproportionality and stifle economic development.
  • The city's director of economic development, Don Maxwell, stated that his office does not support the idea of split tax rates.
  • Councilman Bob Dyer advocated for reworking the city's revenue generation without harming commercial property.

Statistics:

  • The split tax rate proposal was estimated to affect approximately 80% of residential properties and 20% of commercial properties in Virginia Beach.
  • The average residential property owner saw a tax bill increase of hundreds of dollars, but the average commercial business saw a tax bill decrease.
  • Governor Timothy M. Kaine supports giving localities the ability to set differing tax rates for businesses and residential property.

Sources:

  • The Virginian-Pilot
  • City of Virginia Beach Community Legislative Agenda
  • Hampton Roads Chamber of Commerce
  • Virginia Beach Hotel-Motel Association
  • Runnymede Corp.
  • Statement by Governor Timothy M. Kaine
  • Staff writer Mike Gruss

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