Richmond Mayor Levar Stoney introduced a real estate tax plan Monday — the third tax proposal City Council will consider.
It comes after 8th District Councilor Reva Trammell presented a plan to cut taxes by 4 cents. Council President Kristen Nye also introduced a plan to maintain the city’s existing rate of $1.20 per $100 of assessed value — among the highest in the region.
Plans from Trammell and Nye were initially on the docket for council’s Sept. 23 meeting. But the proposals were continued to Oct. 15 — after the mayor’s administration requested an extension during the Sept. 19 finance committee meeting.
Stoney’s plan, dubbed “RVA Stay,” consists of two new options: the Gap Grant Pilot Program and the Richmond Freeze Program.
Gap Grant would provide up to $1,200 over six months toward housing costs, with both renters and homeowners eligible for the income-based program.
Richmond’s Freeze Program would be an option available for residents 65 years and older, or people who are permanently disabled, to be exempt from real estate tax increases. It would freeze a tax bill based on a home’s prior year assessment.
For example, if a qualifying homeowner paid $2,000 in real estate tax in 2024, they would pay the same amount in 2025 — even if a rise in assessment value would otherwise increase their tax bill to $2,200.
All city property owners would also receive a one-time rebate check for 4 cents per $100 of assessed value. Stoney’s RVA Stay plan is dependent on the tax rate remaining at $1.20.
Funding for the mayor’s plan would come from two sources. The Gap Grant and the Freeze would be paid for by incremental tax revenues generated in FY 2025; the rebate would cost the city approximately $16 million and would be paid for by last year’s budget surplus.
Following Monday’s announcement, Stoney told VPM News that RVA Stay is fiscally responsible. He cited 2023 American Community Survey data that shows over one-quarter of the city’s renters spend at least 50% of their income on rent.
“What we're trying to do is to target those individuals, whether homeowners or renters, who need relief the most,” Stoney said. “A tax cut across the board … would go to those who own the most expensive homes in the city. That means those who live in Windsor Farms, in the Fan [and] Museum District.”
Trammell said an across-the-board tax cut is needed because of citywide development, not just development in her district. She noted that the tax rate has remained the same since 2008.
“We've not reduced it since then. And to me, with all the money coming in, all the development, all the population has grown since 2008, and you're telling me, ‘We don't have the money, and this is not the time.’ Yes, it is. This is the time to do it,” Trammell said.
One of Stoney’s arguments against a citywide reduction is that it would benefit some of Richmond’s wealthiest residents. Trammell said the residents pay most of the city’s taxes — and noted that some are elderly, on a fixed income, are sick or dealing with medical bills.
“This is what I'm hearing from some of the people over there on Monument Avenue, over there in the 1st and 2nd District, 4th District,” she said. “So, what's he talking about? You're the mayor for all the people, not for just some of the people.”
The largest source of revenue for the city’s general fund comes from the collection of real estate taxes, Chief Administrative Officer Lincoln Saunders said during Monday’s organizational council meeting.
“Just to be clear, our current budget is based on a projected real estate revenue of $460 million,” he said. “With the updated land book, that projection goes up to $473 [million] and it would be reduced to $457 million, if the tax rate is reduced to $1.16.”
Saunders said a reduction would impact the city’s debt capacity, its operating budget and the level of services the city can provide to residents — including the ability to fund public schools.
Trammell questioned Saunders on how long he had been working on the mayor’s plan and when a rate freeze for those who are eligible could go into effect.
Saunders offered clarification on the two “freezes” at play. The Richmond freeze program, which is part of the mayor’s tax relief plan, would need to be voted on. The larger FY27 freeze, which has already been voted on by council, will happen so the city can align its assessment and fiscal calendars.
Councilor Stephanie Lynch offered her suggestions to Saunders on the Stay RVA plan, including removing a workforce development requirement and creating a relief program for landlords juggling a small number of properties.
“This is a far cry from where we have been in years prior. And I think a great starting place and very thoughtful in how to create some relief in an equitable way,” she said. “We've really gotten this far because [of] Councilmember Trammell.”
The city’s finance committee is scheduled to meet Thursday to discuss the three separate tax plans.