I offer a number of fresh, progressive ideas to fight unfair tax policies while still giving us the resources we need to strengthen our communities, defend our values, and invest in our future. Running the state and our cities and counties isn’t free, but it can be more fair, more consistent, and less reliant on homeowner property taxes.
- Amend Virginia’s constitution to allow localities to exempt a portion of the assessed value of owner-occupied homes from taxation, and pass the homestead exemption amendment so localities can tax residential and commercial properties at different rates. Current state law requires localities to tax residential and commercial property at the same rate, which has created an unfair tax burden on homeowners. For example, even with Arlington’s 8-cent cut in the real estate tax rate, home values have risen faster than commercial property values, so the tax burden for homeowners has risen 13.6 percent, while the tax burden on commercial property has decreased 3.5 percent.
- Kill No Child Left Behind in Virginia. George Bush’s destructive unfunded federal mandate is driving up property taxes by forcing our local governments to waste millions of dollars without improving education. For example, ending No Child Left Behind would save Fairfax County $123 million each year, which is money that could go toward a range of other priorities, including tax relief.
- Keep more of Northern Virginia’s taxes in Northern Virginia through a dedicated regional funding source for Metro. This year’s $850-million transportation package failed to include money for Metro, which has become a massive burden on local governments that is driving up property taxes in Northern Virginia. The Washington Metropolitan Council of Government has proposed a half-penny regional sales tax dedicated to funding Metro.
- Modestly increase taxes on cigarettes and on the incomes of the very wealthy. Virginia has among the lowest cigarette taxes in the country. A modest increase of 30 cent per pack would raise more than $200 million per year in revenue, create more than a billion dollars in long-term health savings, and result in tens of thousands fewer smokers in Virginia, all while keeping Virginia’s cigarette tax below the national median. (Source: Campaign for Tobacco-Free Kids) A slight increase in income taxes on individuals making more than $200,000 per year would help give Virginia more resources to fund critical long-term investments.
