Richmond City Council votes against lowering real estate tax rate after heated debate

RICHMOND, Va. (WRIC) — A heated debate broke out at Richmond City Hall Tuesday night, with council members striking down a controversial proposal to lower the city’s real estate tax rate by four cents.

In a 4–3 vote on Tuesday, Oct. 14, the council chose to keep the rate at $1.20 per $100 of assessed value -- a rate that's remained unchanged for 17 years.

"We just don’t have the votes," said councilwoman Sarah Abubaker.

Public support for the tax cut was modest. Of the Richmonders who spoke about it during the meeting, only one voiced support for lowering the rate.

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Many others, including Richmond Public Schools (RPS) superintendent Jason Kamras, urged council to leave the rate as is.

"RPS is largely funded by property taxes," Kamras said. "The reduction in that rate would almost inevitably mean a reduction for RPS."

The city's chief administrative officer, Odie Donald, II, warned that cutting the rate could create a nearly $17 million budget shortfall for the city.

"When a rainy day comes, we will get wet," Donald said. "We have to put money away."

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He added that maintaining the current tax rate ensures Richmond can "maintain fiscal stability," while protecting essential services, capital projects and employee salaries.

Still, some council members argued residents need financial relief amid rising living costs.

"If we were actually doing equitable redistribution of wealth with our tax dollars, I can maybe be down with it -- but we're not," said councilwoman Stephanie Lynch. "We're growing the operating budget for the city."

"How can we sit here and say that we are for the people?" added councilwoman Trammel.