• Mon - Sat 8:00 - 6:30, Sunday - CLOSED

Charlottesville proposing $0.10 increase in property tax rate

Charlottesville proposing $0.10 increase in property tax rate

CHARLOTTESVILLE, Va. (WVIR) - Charlottesville is currently proposing a $0.10 hike on property tax. Combine that with an 11.69% increase in property value reassessments, and you could see a steep increase in property taxes this year.

“So what you have is an 11% increase in the assessment, and then a 10 cent increase on the 95 cent rate. The impact of those combined results in a 23.5% tax increase,” Free Enterprise Forum President Neil Williamson said.

Williamson says the forum doesn’t take a stance on property tax, but he is able to show the impacts of this proposal.

“The average [Charlottesville] home had a residential value of $410,000 in 2021 and at 95 cents, that home pay $3,487,” he said. “If you kept the rate the same with the assessment they would pay $3,895, but with the 10 cent rate can be at $1.05. That home would raise $4,305.”

The average increase in property value is 11.69%: Some properties didn’t change, while others increased by as much as 31%.

“It’s important to recognize tax increases impact everyone,” Williamson said. “Anyone that has a physical presence in the community pays taxes, whether they pay them directly or indirectly. Renters pay taxes. When your next lease comes up, they will include the tax increase as part of the rent.”

Charlottesville proposing <img src=.10 increase in property tax rate " title="Charlottesville proposing .10 increase in property tax rate" >

Right now, the 10 cent hike is just a proposal, so it isn’t guaranteed to be the set value.

“The reason it was 10 cents was because to afford everything in our budget it would double our debt service payments to $22 million a year, and to afford that would require a 10 cent real estate tax increase while also freezing our ability to make new investments for about a decade to afford what’s in our budget,” Charlottesville City Councilor Michael Payne said.

Payne also says a potential $80 million renovation at Buford Middle School is the main contributor to the need for a increase in property taxes, but he also understands the hardships this could place on Charlottesville families and those are conversations that need to be had when discussing the next budget.

“City Council can advertise a rate higher than what they intend to afford, they just cannot go higher than that rate,” Williamson said. “So the maximum amount City Council can increase property taxes this year is 10 cents.”

Payne says the first draft of the budget will be presented to City Council on March 7.

Copyright 2022 WVIR. All rights reserved.

Do you have a story idea? Send us your news tip here.