No increase to property tax rates; TOT increase to be handled separately
By Randy Arrington
LURAY, April 12 — On Monday night, the Page County Board of Supervisors will hold a public hearing to solicit citizen input on proposed tax rates and the overall $90.7 million budget under consideration for fiscal year 2025. The board meeting begins at 7 p.m. Monday, April 15 in the second-floor, board room in the County Government Center, 103 South Court Street. The FY25 budget cycle begins on July 1 and ends June 30, 2025.
The proposed budget includes no increases to the six property taxes levied by the county. Real estate will continue to be taxed at 73 cents per $100 of assessed value. While the 18-month reassessment process will get underway July 1, the tax implications of higher real estate values will not be felt by taxpayers until the second half of FY26. Personal property will still be taxed at $4.40 per $100 of assessed value, with the caveat that the state’s “car tax” relief plan gives credit on the first $20,000 of value.
Here’s a look at Page County’s proposed six property tax rates for FY25, which represent no change from the ucurrent budget cycle. All rates are levied per $100 of assessed value:
- Real Estate — $0.73
- Personal (vehicles) — $4.40
- Personal (other) — $4.40
- Machinery & Tools — $1.50
- Motor Carrier — $1.50
- Aircraft — $0.50
The one tax that may increase dramatically in the next budget cycle is the Transient Occupancy Tax (TOT), paid as an add-on fee to lodging charges for short-term rentals of cabins, campgrounds, motels, B&Bs, homes, etc. County staff is recommending to double the TOT rate from 5 percent to 10 percent, which will be absorbed mostly by visitors and tourists. A similar hike is being considered by the Luray Council in their budget discussions.
Changes to the TOT rate are considered ordinance amendments, according to County Administrator Amity Moler, and therefore will be considered separately from the property tax rates and the overall FY25 budget. Last week, the supervisors set a public hearing for the proposed hike to the TOT rate for Monday, May 6.
Of the total $1.8 million in projected TOT collections in the current budget cycle, just over $1 million must be spent on tourism-related activities (state law mandates this use for 60 percent of the first 5 percent in TOT collected, all other TOT monies may be directed to the county’s General Fund). The proposed rate increase is projected to generate a total of $3.6 million ($1.8 million in new TOT revenue), raising the amount projected to go into the General Fund from $720,000 this year to more than $2.5 million for FY25. The amount spent on tourism would remain the same. TOT rates across the Shenandoah Valley — from Winchester to Roanoke — range from 4 to 10 percent.
Overall, the county’s revenues are expected to climb by more than $4 million in the next budget from $86.5 million to $90.7 million. Sales tax receipts are anticipated to increase by 8 percent ($190,000), delinquent property tax collections are projected to rise 27 percent ($700,000), and investment interest revenue is expected to provide $500,000.
In addition, county staff has previously used very conservative spending estimates that have created budget surpluses over the last eight budget cycles, thus growing the county’s unassigned general fund balance by 314 percent during that time — from $5.7 million in 2016 to nearly $23.6 million in 2023. However, that has triggered staff to use less conservative figures this time, thus potentially lowering the chances for a significant budget surplus at the end of FY25.
Personnel changes and additions are driving much of the additional expenses in operating funds, such as adding three EMS employees and additional part-time funding in the offices of the Commissioner of the Revenue, Treasurer, Commonwealth’s Attorney and the jail. The county is also supporting overtime increases in EMS and the portion of a 3-percent pay increase across the board to county employees that is not being paid by the state (Comp Board).
More than $3.1 million in capital projects are planned, with $2.8 million being funded by the county and the remainder split between the state and the capital project carryover funds from the current year. A list of a dozen projects includes $1.5 million to complete the “last-mile” broadband project, as well as the purchase of two ambulances, building maintenance and landfill needs.
As staff worked their way to a balanced budget presentation, they faced a $1.3 million deficit between departmental requests and projected revenues. An additional $1.6 million deficit exists between the school system’s requests and recommended local funding, which includes a $500,000 increase over the current $11.7 million in local operating funds for schools in FY24.
The proposed FY25 budget will not be approved, adopted, or ratified by the board of supervisors until at least seven days following the April 15 public hearing. Adoption of the county and school budgets is anticipated at the May 6 meeting, when the board will also consider an increase to the TOT levy.
To view a detailed summary of the proposed budget,
•••
RELATED ARTICLES
Supervisors raise tax on vehicles 14.3% but claim declining values will ‘equalize’ impact
State leaves uncertainty late in budget season; county advertising several tax increases
Supervisors approve $86.5M budget while waiting on state, teachers may still get 7% raise
Supervisors lower tax rate on vehicles 12.5%, ‘residential farms’ approved, and job fair April 29
Supervisors unanimously propose tax rates that reflect no increases
Be the first to comment