Real Estate (Property) Tax Rebate FAQ's
Who is eligible to receive a rebate?
Eligible taxpayers will be those who owed and/or paid real estate property tax as of the second billing of the fiscal year ending June 30, 2022. Taxpayers who paid the fiscal year 2022 real property taxes in full on the January 2022 billing and are the property owner of record as of the second billing of the fiscal year ending June 30, 2022, are eligible to receive the rebate.
Any of these taxpayers who received a partial exemption will receive a five-cent rebate at a prorated amount.
Any of these taxpayers who were fully exempt from real property tax will not be eligible for a rebate.
Delinquent credits will be applied as part of the overall pool. Those who have a delinquent balance will see the rebate amount applied. The rebate will be first applied to the oldest delinquent amounts. If the rebate exceeds the delinquent amount, the balance will be credited to the next tax bill.
How is the rebate calculated?
The rebate is calculated by dividing the total taxable value of the property by $100, then multiplying the result by .05. For example, a $260,000 taxable value/ $100 x .05 would result in a $130.00 credit.
Property owners who owe delinquent taxes to the city will see that credit applied to their outstanding balance (and then applied to their upcoming bill if the credit amount exceeds the delinquency).
How is the tax rebate possible?
A tax rebate is possible because the city has surplus dollars available from Fiscal Year 2022.
Because of this, the City can provide a one-time tax rebate across the board for all property owners.
Why not permanently cut the tax rate?
The tax rate should not be permanently cut because the nation’s economic climate is uncertain, and the City’s financial advisors do not recommend cutting the tax rate, which is currently at $1.20 per $100 of assessed value, at this time.
It is important to note that each penny reduction in real estate tax is equivalent to $3.4 million in lost revenue and each penny reduction also reduces the city’s debt capacity by approximately $4.2 million.
A permanent tax cut impacts the City’s ability to provide core services to residents, such as paving roads and garbage collection.
I haven’t been able to pay the full amount of tax due for this year. Will I be eligible for a rebate?
No. All real estate taxes owed for the tax year 2022 must be paid in full to qualify for the rebate.
I owe delinquent taxes from prior tax years. Am I eligible for a rebate?
All delinquent taxes from prior tax years must first be paid.
I moved into the City of Richmond after June 30, 2022, will I be eligible for a rebate?
No.