Republicans' Exemption Idea Rings a Bell With Democrats

RICHMOND, Sept. 24 -- Republican lawmakers introduced a tax-relief proposal Monday that would allow Virginia localities to exempt up to 20 percent of a home's value from real estate taxes, leading Democrats to accuse GOP lawmakers of trying to take credit for a plan supported by both parties.

Republicans, who are trying to hold on to their party's majority in the House and Senate on Nov. 6, are claiming the tax break as one of their own election-year proposals, but it was actually proposed by Gov. Timothy M. Kaine (D) during his 2005 campaign.

"We're glad that the Republicans support the governor's property tax-relief plan,'' said Delacey Skinner, a Kaine spokeswoman. "We're glad to know we'll have their support."

House and Senate Democrats joined Republicans in overwhelmingly approving the same proposal earlier this year. But because it requires a change to the state constitution, it must pass the General Assembly a second time before it can be put on the ballot in November 2008. If voters approve the change, it will take effect in July 2009.

"The real estate tax is forcing seniors and forcing young couples to move out of Northern Virginia,'' Del. Timothy D. Hugo (R-Fairfax) said at a news conference Monday. "It's a problem. It's not going away, and we need to address it now."

Del. Robert H. Brink (D-Arlington), who sponsored the original bill outlining homestead exemption in 2006, said Monday of the GOP proposal: "That sounds familiar. I'm pleased the Republican leadership has finally come to the table."

The homestead exemption is likely to be well-received in Northern Virginia, where tax bills have more than doubled for some residents in the past several years.

If enacted in full, it could save the owner of a typical Northern Virginia home hundreds of dollars a year. But the exact effect on tax bills won't be known until local governments decide on the amount, if any, of the exemption.

Michael Edwards, deputy director for legislative affairs for the Virginia Association of Counties, said his group supports the proposal. "We see it as another tool in the government toolbox,'' he said. "It's not a mandate. It allows local flexibility."

Officials in Fairfax County have supported a homestead exemption in the past, and other localities, including the city of Norfolk, have asked legislators to help pass similar bills.

If enacted by the state and adopted by local governments, the homestead exemption would reduce the tax liability of some or all homeowners while shifting some of the burden to the owners of commercial and industrial properties, who would not be eligible for the tax break.

The property tax proposal requires that local governments determine tax rates before authorizing a spending plan and notify homeowners of the proposed and previous year's assessment and rate in public notices.

"Owning a home is the American dream, and we need to do everything we possibly can to keep the dream of homeownership alive," said Sen. Nick Rerras (R-Norfolk).

He added, "When the governor has a great idea, we're happy to work with him on it."

The property-tax plan is one in a series of proposals Republicans have been offering before November's election. They have proposed expanding the number of community-based health clinics for the uninsured, requiring sheriffs to check inmates' immigration status and increasing money for school construction.

All 140 seats in the state legislature will be on the Nov. 6 ballot.