In many ways, the controversial property-tax overhaul known as the Actual Value Initiative (AVI) is a done deal.
State law requires the city to do accurate assessments, which is the goal of the overhaul. Also, City Council passed a homestead exemption, which is a tax break for homeowners meant to soften the tax-bill impact of AVI.
But there are some unresolved issues that could have a huge effect on your tax bill.
For instance, it’s unclear how much the homestead exemption will be worth in 2014. According to the legislation, it will exempt homeowners from paying taxes on $30,000 of their property value. The Council President’s office, however, says that figure was a “placeholder” that will be reexamined now that the citywide reassessment is complete.
Council is eyeing several other types of tax relief — some requiring state legislation — that could change your bill.
The property-tax rate also hasn’t been set. The rate will depend, in part, on which relief measures are implemented.
Council could theoretically pass legislation that would stop parts of AVI from happening in 2014. But that idea doesn’t seem to be popular among Council members at this time.