The result of recent real property reassessments has revived a popular sport here in Page County: blaming “outsiders” for all the problems faced by county residents. This activity sometimes reaches a fever pitch and occasionally borders on hysteria. This anger was also stirred up by an unfortunate letter from the county which reinforced existing prejudices by pinpointing the rise in property values to people moving into the county during Covid, notwithstanding the fact that a rise in property values is caused by a wide range of variables. This, combined with the belief that short-term rentals, particularly AirBnBs, has thrown a bit of stink-bomb into the mix where high property values become solely the responsibility of “outsiders” moving into the county and tourists staying at AirBnBs run exclusively by absentee owners.
I know all about the “been heres” and the “come heres.” After being a tax-paying resident in Page County and a former business owner here for 20-plus years, I still get called an “outsider” by many. Of course, this is a label that’s really a deflection to avoid addressing the merits of another’s ideas. It’s an attack that’s as old as the hills. The label also ignores the fact that many new folks coming to the county not only bring innovations; they also counterbalance a decline in the county’s existing population. While I understand how scapegoating others works for politicians and citizens alike, it’s not a substitute for doing hard work to address important issues such as affordable housing.
The truth of the matter is that short-term rentals have long been an important part of the tourism market in Page County — long before AirBnB was even a thing. As a matter of fact, Luray and Page County prided themselves as being the “Cabin Capital of Virginia.” If AirBnB went away tomorrow, there wouldn’t be a sudden stock of affordable housing, because the value of those properties (even before the recent reassessment) is often well above what’s otherwise considered “affordable.”
Further, given that the current 10-percent occupancy transit tax is on the higher end compared to most jurisdictions, if AirBnBs were magically eliminated, it would cut a significant source of revenue for the county which would need to be somehow replaced (although as an aside, I’d be curious about how robust the enforcement is for such taxes). I also think it’s important to understand that, while there are short-term rental properties that are primarily investment property, that model is only one part of the equation.
There are others who see their AirBnB property as temporary. AirBnBs offer a way for individuals to keep property in the family, generating income for maintenance and upkeep until such time that the family may take full advantage of the property as a place to live and raise a family. While this may bring us back to the local bias against “outsider” residents, the fact is that a long-term rental doesn’t allow this level of flexibility. It should be noted that there are also plenty who work in the tourism industry here, which means that there are plenty who can live and work here rather than commute many miles away, an ideal I think everyone can agree is a key to a healthy community.
Instead of taking to this toxic attack on tourists and “outsiders,” I believe it would be more productive for county leaders to take a rational approach in addressing the problems the county faces. If the problem is affordable housing, they should be seeking ways to build and make available affordable housing. That is, they should directly address the problem, rather than go after short-term rentals with the hope that maybe things will change. But, as I wrote above, that’s going to take some hard work and commitment to study and tackle the problem. I don’t pretend to have the solution here, but I do know that pointing fingers at parties that aren’t responsible for a problem doesn’t solve a problem.
At the same time, county officials should consider creative ways to construct tax policies to better support residents. Higher taxes are a problem, but nobody should want their actual property value to go down, as it influences the asking price when a property is sold and it helps pass on wealth to later generations. This is one of the underpinnings of a capitalist society. That said, it’s a shame that the state of Virginia doesn’t allow for homesteading tax deductions — an allowance that reduces the assessed value of an owner-occupied home before taxes are calculated, thus rewarding permanent residents. I don’t know what’s been done previously in this area, but I believe county leaders should be organizing with other counties to promote this idea in the state legislature.
That said, Virginia law does authorize localities to provide targeted tax relief through a variety of exemptions for various groups, such as seniors, disabled residents, and others. While the recent reassessment that was mailed to residents does mention such exemptions available in Page County (a fact that may have been lost for many residents in the shock-value of the top line numbers), I believe the county should explore ways to expand exemptions to the maximum degree allowed under the law. They should also petition the state to authorize wider exemptions. And finally, they should promote the exemptions in a more user-friendly and proactive way among residents.
Certainly, the county ought to lower the overall tax rate to balance increased property values as has been discussed, but the solutions cannot end there.
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Mr. Gould. You gave me a wealth of information to digest. Thank you! I have been asking questions, not intending to be judgmental towards anyone, but to understand why it is what it is. As preposterous as it may seem, I would like to see the reassessment values with the percentage of increase and tax history, to be sure all of us are being treated fairly.
“Paula D”. My reassessment increased 52% to just a little over what Zillow says is the market price. Anyway, when the counties come along and lower the tax rates, it encourages real estate purchases by whoever can, since the buyers are grateful both at purchase time and into the future after each reassessment. It’s a market thing. It’s more psychologically satisfying to buy something to have and to hold rather than write big checks every six months over and over.
Thank you Robert, first for correcting my typo (; versus l. My retirement home has increased in value. I have no doubt about that. It makes up, a little bit, for my losing so many $s on my previous suburban southern NY townhouse and my losing my retirement savings when I struggled to survive the 2008 recession due to a lay off. I’m not looking for anyone’s sympathy or a hand out. I was not built that way. A phrase that has always struck me as what it is all about is ‘Can’t we all just get along?” Wanting to help is not being a “bleeding heart. When I thought my wallet might have been left at a local store. I called twice to report that I’d found it. They didn’t answer the phone.
I know that having a sense of humor and acceptance of an “it is what is is” is vital to surviving where we all are at today. So, I’m going to throw some humor out there. It’s not meant to be sarcastic. I care! Mr. Gould, was your vocation selling real estate? Robert, both Zillow and Realtor estimates of my home are below the county reassessment. Please don’t be an ostrich. Seniors across the country have been made to feel that it is more profitable to move us along on our path. Page County, for my investment into it, deems that I’m not poor enough to get a break and stay here to enjoy a few years of retirement. I’m not rich enough either! Does anybody want to make an offer on the 3BR, 2 bath, .522 acre ranch that I purchased 12/2019 that already went up 29% in 2021 property tax, w/an additional proposed 79.83% (without the rate reduction) needs a new roof, a crawl space that floods because the lot is one of the low points in the subdivision and would could use some remodeling? I admit to being angry with is the home inspector I hired. He was an a__! The cry I keep hearing from others is “where would I go?”