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RESOLUTION TO REDUCE THE REAL ESTATE TAS RATE FOR HOMEOWNERS • IN CHARLOTTESVILLE Whereas, the real estate tax is a major source of revenue for the City of Charlottesville, accounting for $42,750,000 of $75,461,863, or 57.4 percent, of taxes collected locally by the City; Whereas, over the past five years, the real estate assessment values for individual homeowner properties have risen at a much faster rate than commercial and rental properties, placing an increasing percentage of the local tax burden on City homeowners; Whereas, unlike commercial and rental real estate owners, homeowners do not typically derive income from property which is their primary residence; Whereas, homeownership is a priority of City Council, and Council recognizes that the total cost of homeownership includes the real estate taxes that are levied by the City; Whereas, increases in assessments has a greater impact on citizens on fixed incomes; Whereas, thirty-one states allow local governments to provide real estate exemptions to homeowners; • Whereas, the General Assembly recently passed legislation permitting the City greater flexibility in expanding homeownership opportunities; Whereas, other tools and policies would be useful to the City in addressing the burden of increasing assessments on residential homeowners; Now, Therefore, be it resolved that the Council of the City of Charlottesville, Virginia seeks to address the inequity in real estate taxation, and, to that end, directs City staff to develop additional options for doing so, to include but not be limited to an exploration of the implications of establishing a differential tax rate for residential and commercial properties. The Council further directs staff to prepare a report to Council detailing these options, and to discuss these options with our elected representatives for possible inclusion in next year's legislative package. •