Title
Ordinance to Adopt the Tax Rates Applicable to Real Estate and Improvements Thereon in the City of Hampton, Virginia for Fiscal Year 2027 Beginning July 1, 2026 and Ending June 30, 2027
Purpose
PURPOSE/BACKGROUND:
This ordinance adopts the general tax rate applicable to any and all real property and improvements thereon throughout the entire City of Hampton, Virginia, including Fort Monroe and the U. S. Government Reservations of Langley Field and the Kecoughtan Veterans Hospital, as presented in the City Manager's Recommended Budget for Fiscal Year 2027. In addition, it incorporates the adoption of a higher tax rate for certain properties classified as blighted property in accordance with Code of Virginia Sec. 58.1-3221.6.
Discussion:
The ordinance adopts the general tax rate applicable to any and all real property and improvements throughout the entire City of Hampton, Virginia, including Fort Monroe and the U. S. Government Reservations of Langley Field and the Kecoughtan Veterans Hospital, except for those certain blighted properties. It imposes a general tax rate of $1.14 per $100 of assessed value, which maintains the current real estate tax rate.
In addition, it imposes a higher tax rate on certain blighted properties. Code of Virginia Sec. 58.1-3221.6 provides that localities satisfying the criteria set forth therein may impose a rate on blighted properties that is up to five percent (5%) greater than that imposed on the general class of real property. The higher rate to be imposed on blighted properties is $1.20 per $100 of assessed value. For this purpose, blighted property is statutorily defined as: " Any individual commercial, industrial, or residential structure or improvement that endangers the public's health, safety or welfare because the structure or improvement is dilapidated, deteriorated, or violates minimum health and safety standards; or any structure or improvement previously designated as blighted under the process for determination of "spot blight." A separate ordinance to locally enact the authority to impose this tax rate and general provisions related to the administration thereof is proposed for adoption in conjunction with this tax rate adoption.
The public hearings necessary to adopt a budget, including this tax rate, were duly advertised in the Daily Press on April 12, 2026, April 26, 2026, and May 3, 2026.
Pursuant to Hampton City Code §2-50(c): "No ordinance or resolution, having for its object a tax rate increase, shall be passed on the same day of its introduction, except such a rate may be passed on the same day of its introduction by the concurrence of five (5) members of the council, pursuant to a motion made for that purpose. In addition, in no instance shall the tax rate increase adopted exceed such rate published and advertised prior to its adoption." This ordinance is being introduced on May 6, 2026. Final approval will be requested at City Council's meeting on May 13, 2026.
Impact:
The estimated real property taxes to be collected in fiscal year 2027, excluding BID taxes and public service corporation taxes (utility companies), is $191,463,402, which represents an increase in this revenue category of 2.25% over fiscal year 2026.
Recommendation:
May 6, 2026: Introduction.
May 13, 2026: Approval.
Body
WHEREAS, the City Council is required to annually consider the City Manager's Recommended Budget for the next fiscal year; and to adopt a budget and appropriate, by ordinance, funding consistent with that budget.
BE IT ORDAINED by the City Council of the City of Hampton, Virginia, that the City levy for the fiscal year beginning July 1, 2026, on each $100.00 of assessed value of real property and improvements thereon that is liable for such levy within and throughout the entire City of Hampton, Virginia, including Fort Monroe and the U. S. Government Reservations of Langley Field and the Kecoughtan Veterans Hospital, adopts for the period from July 1, 2026 to June 30, 2027: (1) a general tax rate of One and 14/100 Dollars ($1.14) per $100 of assessed value; and (2) for those certain properties determined to be "blighted properties" as defined by Code of Virginia Section 58.1-3221.6 and the local ordinance enacted pursuant to that statute, a tax rate of One and 20/100 Dollars ($1.20) per $100 of assessed value.