No easy answers

 On Thursday, May 19, the Goochland Board of Supervisors held a special called meeting to address payment of local taxes. The board passed 4-0—Don Sharpe, District 4 was not present—an emergency ordinance delaying the imposition of penalty and interest for any tax payments made by August 1. The board also scheduled a public hearing on the ordinance for its July 5 meeting.

This action will give citizens more time to pay their taxes without penalty while the board and staff looks for other possible relief for taxpayers.

One person spoke at the meeting declaring that the personal property tax bills were unbelievable. The speaker contended that the county should reduce the rate because the higher tax bills hurt everyone and surrounding counties have already done so.

Board Chair Neil Spoonhower, District 2 said that during his 868 days in office several unexpected things have occurred, from pandemics to brutal winter storms, to county administrators coming and going. He likes taking the phone calls—and the supervisors undoubtedly got many phone calls about tax bills—because they provide an opportunity for deeper discussions with citizens than TV sound bites. Those interactions enable him to share how the supervisors wrestle with decisions to make them fiscally responsible. "I haven't seen a decision that has been made lightheartedly or without a lot of thought," said Spoonhower.

Another county, said Spoonhower, bragged about eliminating their $35 dollar vehicle "sticker" tax. "Goochland got rid of that several years ago. We do have the lowest real estate tax around (53 cents per $100 of assessed valuation) and we've held that for a long time. We've been responsible with everything we do. We understand that this impacts everyone and try to look forward."

Spoonhower pointed out that Goochland County is not immune from inflation. Its costs for everything from fuel prices to the cost of a new school are rising too. He contended that inflation is a multi-year challenge. "Please just know that the decisions we are making are after a lot of thought. We're doing the best we can to make good decisions for today and the future. We're imploring the Lord for wisdom in these matters."

Interim County Administrator Manuel Alvarez, Jr. said that when the initial proposed budget was presented in February, they knew that car prices were up and proposed a ten cent personal property tax rate reduction. By April when the final FY 23 budget was approved, it was based on a twenty cent rate reduction to $3.75 per $100 of valuation because used car prices were even higher.

"This is not a one time tax rate reduction like other counties are making. We know it's not enough. We don't set used car prices. Our Commissioner of Revenue is required by state law to assess vehicles at fair market value using a recognized pricing guide—the J. D. Powers Official Use Car Guide eastern edition."

Alvarez said that the county has a high mileage program, which could reduce the value of a vehicle depending on mileage. The filing deadline for that program was March 31. However, the Commissioner of the Revenue has agreed to extend the program for anyone who comes to her office with high mileage vehicles and will work to provide a discounted valuation. The Goochland rate reduction applies to cars, trucks, boats, RVs, everything, while Henrico's reduction applies only to personal vehicles.

The county absorbed other vehicle tax costs by "eating" the difference between Goochland's share of  money allocated by the Commonwealth for "car tax relief"  and the actual cost. Alvarez said that the board has been meeting over the past few weeks to figure out what surplus might be available for further reductions. Many variables in the system must be considered.

Spoonhower said that Goochland is constrained by what the state allows counties to do. He has been in touch with 65^th  District Del. Lee Ware on this matter. The main concern of many people that have contacted Spoonhower is not the size of the tax bill, but that the supervisors may be "going into the back room and dancing a jig over the size of the tax windfall."

"We are not looking at this as a windfall," said Spoonhower. "When you realize it's taking money out of people's pockets, it's an entirely different perspective. This is not our money. We will be good stewards of tax dollars."

Ken Peterson, District 5, said that increase in used car values is a result of a shortage of new cars, and hopes that values will decrease as supply chains normalize. "We're seeing a once in 40 year out-of-control inflation that has implications on how we raise funds to meet county expenses. Inflation is a horrible thing, especially for those living on the margins."

Spoonhower encouraged those who are having trouble paying their taxes to work with the treasurer to set up payment plans.

County Attorney Tara McGee explained that the emergency ordinance needed to be passed before the June 6 due date for first half taxes, which is the day before the next regular board meeting. The public hearing cannot be held before the July 5 meeting to due to advertising requirements.