(Note: revised 1/14 to reflect Comp Board change in 2% salary increase for FY18)
Virginia Commissioners of the Revenue Association 2016 Legislative Agenda
Virginia’s elected Commissioners of the Revenue are making every effort to better serve the Commonwealth and its citizens by providing efficient and innovative revenue administration at both the state and local levels.
In brief, we are committed to providing services to the citizens in each of our localities while simultaneously enhancing state and local revenues at little to no cost.
We are seeking your consideration and support for the following budget priorities:
Item #1 – 2% Salary Increase for Constitutional Officers eff. August 1, 2017
Budget Bill HB 30/SB30 (Introduced) Item 475 P.1 & R.1.a
Administration FY 17 FY 18
Compensation Board $0 $10,123,818 GF
Explanation:
P.1. The Governor is hereby authorized to allocate a sum of up to $11,800,000 (Constitutional Officers) the second year from this appropriation to the extent necessary to offset any downward revisions of the general fund revenue estimate prepared for fiscal years 2017 and 2018 after the enactment by the General Assembly of the 2016 Appropriation Act or 2017 Appropriation Act. If within 5 days of the preliminary close of the fiscal year ending on June 30, 2017, the Comptroller’s analysis does not determine that a revenue re-forecast is required pursuant to § 2.2-1503.3, Code of Virginia, then such appropriation shall be used only for employee compensation purposes as stated in paragraphs Q. and R., below.
R.1. Contingent on the provisions of paragraph P.1. above, the appropriations in this Item include funds to increase the base salary of the following employees by two percent on August 1, 2017, provided that the governing authority of such employees certifies that the listed employees will receive the stated pay increase.
Locally-elected constitutional officers;
Item #2 – Commissioners of the Revenue Career Development
Budget Bill HB 30/SB30 (Introduced) Item 72 D & E
Provide (FY17) career development program (CDP) funding for 14 principal officers and 102 deputies who have qualified for the program but remain unfunded, some as long as seven years. (Approximate cost $475,228 in FY17 & FY 18)
Administration FY 17 FY 18
Compensation Board $237,614 $237,614
Item #3 – Burden of Proof & Arbitration in Real Estate Assessments
Burden of Proof – Commissioners of the Revenue oppose any efforts to alter the burden of proof in real estate assessments. Our main objection to this bill was that it shifted the burden of proof from the taxpayer to the assessor.
Losing the HISTORICAL presumption of correctness of real estate assessments would be a disaster for local government, and also sets a precedent for all other assessments (e.g. Personal Property). In almost all states, including Virginia, assessments are deemed prima facie correct and the burden of proving otherwise falls on the taxpayer.
An appeals process has been in place since the 2012 GA Session and agreed to by VML, VaCO, Virginia Association of Assessing Officers (VAAO), Commissioners of the Revenue, and the Virginia Association of Realtors.
Localities utilize a Mass Assessment process that is professional, inherently conservative, uniform and fair. Most assessors, even in smaller localities, have state licenses, professional designations, as well as years of experience and continuing education.
Any change would favor wealthy commercial owners who have the resources to litigate AND wealthy localities who have the resources to fight assessments. Smaller businesses and localities would not have the resources to litigate or defend these actions.
Any change will only encourage litigation and will dramatically increase the number of appeals and lawsuits, including frivolous lawsuits. The main beneficiaries would be attorneys and MAI fee appraisers (called as expert witnesses).