Colonial Beach News is investigating the legality of a supplemental real estate tax bill sent out to all Colonial Beach Residents in November 2018.
Recently residents received their 2019 fiscal year real estate tax bill at a rate of .80 cents per every $100.00 of assessed value. The bill is labeled as “FY 2019 Real Estate Tax Bill”
The 2019 fiscal year runs from July 1, 2018 to June 30, 2019.
In addition residents received a “supplemental” real estate tax bill also labeled as “FY 2019 Real Estate Tax Bill” for an amount that equals 6 months real estate tax at a rate of .10 per every hundred dollars of value.
On June 2, 2018 Colonial Beach Town Council held a public hearing to receive comments on Ordinance 693 which amends the Colonial Beach Town Code, Sec. 20-1, “Real Estate Tax” to increase real estate tax rate from .70 to .80 per $100.00 of assessed value.
On June 20, 2018 The Colonial Beach Town Council voted 5 to 2, passing the proposed 10 cent tax increase making current real property tax rise from 70 to 80 cents per hundred dollars of value.
Above is a screen shot of Ordinance 603, which appears on the Colonial Beach Town website in the actual council approved minutes from the June 20, 2018 Town Council Meeting in which the document was voted on and passed.
Immediately following the vote to raise real estate taxes the council voted 5 to 2 to pass the proposed budget for fiscal year 2019. The budget passed, lists the real estate tax increase of ten cents in that document.
Above is a screen shot, of the actions taken by council regarding Resolution 22-18 adopting the fiscal year 2019 budget, which appears on the Colonial Beach Town website in the actual council approved minutes from the June 20, 2018 Town Council Meeting in which the document was voted on and passed.
Below is a screen shot of the 2019 fiscal year budget adopted, which appears on the Colonial Beach Town website in the actual council approved minutes from the June 20, 2018 Town Council Meeting in which the document was voted on and passed.
If the “supplemental” bill is correctly labeled as FY 2019 then that would mean the Town of Colonial Beach has erroneously billed residents twice, for the .10 cent real estate tax increase.
However residents have stated they are being told by town staff that the “supplemental” bill is being charged for the first 6 months of the calendar year 2018. If that is the town's intention then the .10 tax increase voted in on June 20, 2018 is being charged as retroactive and is being labeled incorrectly. (Colonial Beach News has not confirmed this with the town, as this information was brought to us over the holiday weekend.)
If the latter is true, Colonial Beach is seeking to determine if the Town of Colonial Beach has the legal right to bill for a tax increase retroactively.
Colonial Beach News has sent a FOIA request for legal documentation: at the town, county and state level, authorizing a locality to raise real estate taxes retroactively.
This is a continuing story and we will update residents as we receive information.
Colonial Beach News
Reference June 20, 2018 Colonial Beach Council Meeting Minutes: http://colonialbeachva.net/wp-content/uploads/2018/09/June-20-2018-Reg-Mtg-Minutes.pdf