Rather than considering new exemption requests, the council now will consider requests for financial support from organizations when preparing the city's annual budget.
The council had been contemplating the moratorium for months and at its
Empowerhouse provides extended emergency shelter for victims of domestic violence. ERI owns the land where the
The decisions to make those denials came in identical 4-3 votes with Mayor
On Tuesday night, the council voted 5-2 to establish the moratorium, with council members
The idea to indefinitely suspend consideration of new requests for real estate tax exemptions was budget driven and proposed by the city staff.
Assistant City Manager
Tuesday's action does not impact properties already granted an exemption or exempt by law.
Government-owned land and land used by religious bodies for worship is classified as exempt by law.
Greenlaw noted that other cities in
She repeated her concern that other jurisdictions in the region need to contribute their fair share toward nonprofits serving the region.
"We support them handsomely. We will continue to support them handsomely," she said.
Devine said she understands the importance of having other jurisdictions contribute appropriately but was concerned about the timing of the action and that properties already exempt are not impacted.
Once a property is granted tax-exempt status, its status continues forever unless the use and ownership of the land changes, City Attorney
Every three years, land owners granted an exemption must document that nothing changed.
The resolution passed on Tuesday notes that the city's population is growing and so is the demand for government services.
Looking at each organization's request annually during the budget cycle will enable council members to consider how much the city relies on each organization for meeting residents' needs, an approach Kelly said he already takes in evaluating requests.
"It's not an issue of taking anything away," he said of the change. "It's just looking at things differently."
WHO IS EXEMPT?
The assessed value of all land within the city totals nearly
Of that total, nearly
That leaves land valued at nearly
However, the majority of the untaxed land is government owned and exempt by law. That land is valued at nearly
The value of land that was designated as exempt by the council rather than classified that way by law is worth a little more than
The tax on that land would generate
The tax rate rises to
Only nine properties have been granted an exemption by the council.
The most valuable is the land owned by
In addition, the city gave exemptions to two groups supporting the homeless, a group serving the HIV/AIDS community, and the
The city of
OWNER LAND VALUE TAX VALUE*
Thurman Brisben Center
Maranatha Music Ministries
Micah Ecumenical Ministries
Fredericksburg Area HIV/AIDS
* The tax value is based on the current tax rate. The real estate tax rate will increase to
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