The Roanoke County Board of Supervisors respectfully urges the Subcommittee to support HB 68. HB68 revises the requirements for informing the public about the interaction between real estate tax rates and the growth in assessed values. Currently, when growth in assessments would result in an increase of more than 1 percent in the total real property tax levied, the governing body must reduce the tax rate accordingly, unless it holds a public hearing. The notice for the public hearing, as well as the notice of change in assessment that is mailed to each property owner, must include a calculation showing the tax rate that would levy the same amount of real estate tax as the previous year when applied to the total assessed value of real property (excluding new construction or improvements). Under current law, this calculation makes no allowance for inflation in the value of real estate, which has often exceeded 1 percent. As a result, by advertising the lowered rate necessary to offset the increased assessment, as currently calculated, localities are communicating to the public a tax rate that would produce a reduction in revenue, when adjusted for inflation. HB68 amends the notice requirements by requiring localities to communicate the lowered rate necessary to generate no more than a one percent increase in real estate tax revenue, after adjusting growth for inflation, which will provide more intuitive and accessible information to the public regarding the proposed tax rate. We thank you for your kind consideration.

RE: HB68 Per the City Assessor for the City of Portsmouth: "I do not believe this bill effectively communicates the intended information to taxpayers. As currently written, it presents a misleading 'projected' tax rate, which many taxpayers tend to interpret as definitive. I'm opposed to any notices that omit factual data. As appraisers, we must adhere to one of the core principles of USPAP: we must not provide misleading information. Including such projections on assessment notices does not constitute meaningful tax reform."

HB68 revises the requirements for informing the public about the interaction between real estate tax rates and the growth in assessed values. Currently, when growth in assessments would result in an increase of more than 1 percent in the total real property tax levied, the governing body must reduce the tax rate accordingly, unless it holds a public hearing. The notice for the public hearing, as well as the notice of change in assessment that is mailed to each property owner, must include a calculation showing the tax rate that would levy the same amount of real estate tax as the previous year when applied to the total assessed value of real property (excluding new construction or improvements). Under current law, this calculation makes no allowance for inflation in the value of real estate, which has often exceeded 1 percent. As a result, by advertising the lowered rate necessary to offset the increased assessment, as currently calculated, localities are communicating to the public a tax rate that would produce a reduction in revenue, when adjusted for inflation. HB68 amends the notice requirements by requiring localities to communicate the lowered rate necessary to generate no more than a one percent increase in real estate tax revenue, after adjusting growth for inflation, which will provide more intuitive and accessible information to the public regarding the proposed tax rate. Phil North , Supervisor Hollins District Roanoke County, VA