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City Council rejects tax cut proposal, approves relief program

George Copeland Jr. | 11/14/2024, 6 p.m.
Months of discussion over the Richmond real estate tax rate ended Tuesday evening when Richmond City Council voted 5 to …

Months of discussion over the Richmond real estate tax rate ended Tuesday evening when Richmond City Council voted 5 to 4 to reject a proposed tax rate reduction from $1.20 to $1.16.

The ordinance, introduced by Reva Trammell of the 8th District, was supported by council members Ann-Frances Lambert, 3rd District; Stephanie Lynch, 5th District; and Ellen Robertson, 6th District. Voting against the measure were Andreas Addison, 1st District; Katherine Jordan, 2nd District; Kristen Nye, 4th District; Cynthia Newbille, 7th District; and Nicole Jones, 9th District.

“It is just too high,” Trammell said as she advocated for her proposal. “People are hurting, everywhere. They can’t pay for the utilities, they can’t pay for gas, can’t pay for groceries.”

In its place, City Council unanimously approved a one-time 4-cent tax rebate as part of the RVA Stay relief program proposed by Mayor Levar M. Stoney and patroned by Nye as an alternate method to address the impact of rising tax rates on residents.

The rebate is estimated to cost $16 million and will be paid using the 2024 fiscal year surplus.

The RVA Stay program also will provide up to monthly $200 grants for six months to residents spending 30% or more of their income on housing through the Gap Grant pilot program.

Additionally, the Richmond Freeze Program will exempt homeowners age 65 or older, or those living with disabilities, from real estate tax increases.

“These targeted proposals are how we provide fiscally responsible … relief to those who need it the most,” Stoney said during a press conference Wednesday.“We want Richmonders to stay in Richmond, and this is our way of reducing those housing-related costs they may be experiencing.”

While Stoney was optimistic about the program’s future, and suggested the Gap Grant could become a permanent program, Trammell was insistent on the need for a tax cut to address the stress residents across the city are facing.

Trammell’s concern was echoed by residents and property owners who spoke in favor of her ordinance.

“I want to stay here, I want to keep my house,” 1st District resident Bonnie Atwood said. “If I leave, I don’t know where I would go.”

In addition to the vote on tax rate proposals, council members approved a range of other ordinances. These include approving the license agreement for Greyhound Bus to use part of Main Street Station as a bus hub, a voluntary gun buyback event and establishing the Shockoe Hill African Burying Ground as a cemetery.

City Council also approved a $2 million expansion of Richmond Animal Care and Control operations to a new location in the Fan District. The proposal saw some pushback from Lynch and Robertson over the city prioritizing the needs of its animal population while neglecting its human residents without housing.

The two were the only votes against the measure.