HB 4929
Creating the Truth in Taxation Act
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill, the Truth in Taxation Act, aims to increase transparency in how local governments set property tax rates. It requires counties to calculate a ‘revenue neutral rate’ – the rate needed to generate the same property tax revenue as the previous year – and to notify taxpayers about proposed tax increases. The bill establishes a process for governing bodies to exceed this rate, requiring public notice, a public hearing, and a majority vote, with potential refunds for over-collected taxes.
Key provisions
- Calculates a ‘revenue neutral rate’ based on previous year’s assessed valuation and property tax revenue.
- Requires counties to notify taxpayers of proposed tax rate increases exceeding the revenue neutral rate.
- Mandates public notice and a public hearing before exceeding the revenue neutral rate.
- Requires a majority vote of the governing body to approve exceeding the revenue neutral rate.
- Establishes a refund process for over-collected taxes if the governing body exceeds the revenue neutral rate without proper procedures.
- Excludes school districts from the requirements of the bill.
- Provides an exemption for taxing subdivisions with less than $5,000 in property tax revenue.
- Directs the county clerk to consolidate notices for taxpayers with property in multiple taxing subdivisions.
Who is affected
- Taxpayers
- County Clerks
- County Governing Bodies
- Taxing Subdivisions (counties, cities, etc.)
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