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Bath begins reassessment
Citizens worried about increased land values
BY CHARLES GARRATT • STAFF WRITER
WARM SPRINGS - The Bath County board of supervisors approved a contract Tuesday to begin reassessing real property in the county and to set the effective date for the new valuations at Jan. 1, 2008 and not everyone's happy about it.
In recent years, new assessments have become effective on July 1, the beginning of the county's fiscal year. County administrator Bonnie Johnson explained the change is necessary in order for the county's property values to match the calendar year used by the state to value public service corporation property.
"The date of assessment for tangible personal property, machinery and tools, real estate and public service corporation property shall be the first day of January of each year immediately preceding the fiscal year for which taxes are to be levied, imposed and collected…" states the new section of the Bath County code adopted Tuesday.
With the date change and the approved assessment contract awarded to Blue Ridge Mass Appraisal, the county will collect taxes for fiscal year 2008-09 beginning July 1, 2008 on the new land values as of Jan. 1, 2008. The January date will be used even though the assessment process will not be complete until late spring 2008.
Cedar Creek supervisor Percy Nowlin served on the committee charged with selecting the company to handle the assessment. Nowlin was not happy with the choice of Blue Ridge and only voted in favor of the contract after the other board members agreed to add an oversight clause. Under the clause, Blue Ridge will be required to meet with the committee and report progress every six weeks.
Blue Ridge Mass Appraisal was the low bidder of four companies, Nowlin said. He said going with the cheapest is not always the best solution. "Sometimes you get what you pay for," Nowlin said.
Nowlin listed a number of concerns with Blue Ridge based on the last assessment done three years ago by Blue Ridge. He said it was apparent the company did not visit all parcels of property in the county as required.
In addition Nowlin noted the county received 543 appeals to the board of equalization and 373 were changed, a total of 69 percent.
"We are trying to recover $3 million from the pumped storage facility, which will require the assessors to spend time to value each and every parcel," Nowlin said.
While the county sets the tax rate applied to real estate and public service assets, the state sets the actual value for public service property and then under a complex process determines what percentage of that value is taxed. This year Dominion Virginia power and other public service corporations in the county paid only 66.1 percent of assessed value.
Nowlin said that amounts to a loss of $3 million dollars in tax revenue from what the county would have received at 100 percent valuation.
A number of residents spoke against having a new as- sessment next year. "Reassessments are an assault on the American dream," Bacova resident Jay Trinca said. He told the board he lived in the county for two reasons - "lack of growth and lack of taxes."
Carl Chestnut, who is running against Nowlin for the Cedar Creek seat, said, "They didn't treat us right the last time." He said he agreed with Trinca it was too soon for another assessment.
State law requires localities to reassess real property values at least every six years. Under the law, Bath County could wait three more years before another assessment.
Nowlin said, "There is no turning back." Without a reassessment he pointed out, the percentage of county taxes paid by public service corporations (mostly the pumped storage station) would continue to decline. The county will either have to raise the tax rate on all property, he said, or reassess to keep the share paid by the pumped storage as near 100 percent as possible.
Supervisor Stuart Hall said it was cheaper for taxpayers to reassess. He pointed out raising property values would allow the county to lower the tax rate, keeping the over all tax bill for property owners about the same.
Jon Trees, Warm Springs district supervisor where the Pumped Storage facility is located, said, "Expenditures are exceeding revenue." He said the choice is to increase revenue or cut services.
Nowlin said the county needs to "reassess then lower the tax rate." The two are separate, he added.
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