HAMPTON ROADS, Va. - Two cities on the Peninsula are proposing lowering their real estate tax to help combat the rising cost of homes.
The City of Newport News is proposing a reduction in real estate tax from $1.22 per $100 assessed to $1.20. This is the first cut in real estate taxes since 2008.
Homeowner John Ortega said he welcomes any relief.
"I think it's great. Housing prices continue to rise, so any sort of break we can is just good news all around," Ortega said.
The City of Hampton is proposing a six-cent reduction, from $1.24 per $100 assessed to $1.18.
Both cities will vote on the proposals in May.
The cities also gave taxpayers a break last month when personal property tax assessment values were decreased from 100% to 75%.
Newport News Commissioner of Revenue Tiffany Boyle explained to News 3 how this will impact vehicle owners.
“If we take a car that’s valued at $20,000 at 100%, we would then value it at $15,000 at the 75%, and your taxes would be based off that value,” Boyle said.
She said it was all in an effort to provide taxpayers some relief from the rising cost of new and used cars.
“We took it upon ourselves to say this would not be fair to our taxpayers - to have to pay a high increase in personal property taxes, especially because we have all been struggling the last two years due to the pandemic," Boyle said.
Related: Proposed Virginia Beach budget would raise real estate tax
