Title
Public Hearing to Receive Citizens’ Comments relative to the Proposed Real Property Tax Increase; Proposed Tax Rate is to Maintain $1.14 Per $100 of Assessed Value
Purpose
PURPOSE/BACKGROUND:
Code of Virginia 58.1-3321 requires that a public hearing be conducted when an annual real estate re-assessment results in an increase in the real estate tax levy that is more than 101% of the prior year's tax levy in order for that locality to levy at a tax rate that will generate more than that 101%.
Discussion:
The current real estate property tax rate is $1.14 per $100 of assessed value. The current assessed value of real property, excluding additional assessments due to new construction or improvements to property, exceeds last year’s total assessed value of real property by 3.27 percent (3.27%). The new real estate tax revenue in the budget is due solely to growth in the value of real estate in the City of Hampton.
Lowered rate necessary to offset increased assessment: The tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusions mentioned above, would be $1.1149 per $100 of assessed value. This rate will be known as the "lowered tax rate."
The advertisement for this public hearing indicates a proposed tax rate of $1.14 per $100 of assessed value, which is also factored into the FY27 Manager's Recommended Budget. The difference between the lowered tax rate and the proposed rate would be $0.0251 per $100 or 2.25 percent (2.25%). This difference will be known as the effective tax rate increase. Thus, the need for the public hearing despite the proposal to maintain the current tax rate of $1.14 per $100 of assessed value.
This public hearing was duly advertised in the Daily Press on April 5, 2026 in accordance with the Code of Virginia 58.1-3321.
Recommendation:
Conduct hearing; receive public comment.