Title
Public Hearing to Receive Citizens’ Comments relative to the Proposed Effective Real Property Tax Increase; Proposed Tax Rate Decrease from $1.16 TO $1.15 Per $100 of Assessed Value
Purpose
PURPOSE/BACKGROUND:
State law 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 $1.16 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 4.38 percent (4.38%). The advertisement for this public hearing indicates a proposed reduced tax rate of $1.15 per $100 of assessed value, which is also factored into the FY25 Manager's Recommended Budget. While this is a substantially reduced rate, it is greater than would be necessary to limit growth to only 1%. Thus, the need for the public hearing despite this proposed rate reduction.
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.
This public hearing was duly advertised in the Daily Press on April 7, 2024 in accordance with the Code of Virginia 58.1-3321.
Pursuant to Hampton City Code Sec. 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.
Recommendation:
Conduct hearing; receive public comment.