Title
Ordinance to Amend and Reenact the City Code of the City of Hampton, Virginia by Amending Chapter 37 - Taxation, Article II - Real Estate Taxes to Add Division 8 - Classification of Blighted Properties
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
Code of Virginia Sec. 58.1-3221.6 authorizes localities with a score of 100 or higher on the fiscal stress index, published July 2020 by the Department of Housing and Community Development ("DHCD") to enact legislation to establish "blighted properties" and "derelict buildings" as a separate classifications for real property tax purposes. The City of Hampton had a score of 105.29 on the July, 2020 DHCD fiscal stress index. During the FY26 City Council Budget Retreat, staff was directed to move forward with developing a standardized process to implement one or both of these rates for Fiscal Year 2027. It was ultimately decided to move forward with a process for blighted properties only (given the challenges of identifying structures that meet all of the criteria of derelict buildings). Properties classified as blighted may be taxed at a rate that is up to five percent (5%) higher than the general real property tax rate
"Blighted properties" are 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 upon the property is dilapidated, deteriorated, or violates minimum health and safety standards, or any structure or improvement designated as blighted pursuant to §36-49.1:1 of the Code of Virginia under the process for determination of “spot blight.” The process to identify those properties is memorialized in the ordinance below proposed for adoption.
The City Manager's Recommended Budget for Fiscal Year 2027 includes the recommendation of a general real property tax rate of $1.14; and a blighted properties real property tax rate of $1.20.
Impact:
The enactment ...
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