By Randy Arrington
LURAY, April 17 — Following a public hearing at Monday night’s Page County Board of Supervisors’ meeting, the supervisors unanimously agreed to leave all tax rates the same for the upcoming fiscal year, except one — personal property levies on vehicles.
A year ago, the board lowered the rate from $4.40 to $3.85 (per $100 of assessed value) after Gov. Glenn Youngkin signed a bill to reclassify certain vehicles and personal property tax rates. House Bill 1239 sponsored by Del. Phillip Scott (R-Spotsylvania) allowed local governments to drive down car tax rates and halt hikes spurred by increases in used vehicle values. Prior to the bill’s passage, car tax rates could not be lower than the general rate of personal property, which “created a roadblock to cutting car taxes,” according to a press release from the Governor’s Office.
This year, Page County supervisors have chosen to return the tax rate on vehicles to its former level, and the same rate as all other personal property at $4.40 (per $100 of assessed value). While the jump from $3.85 to $4.40 does mark a 14.2-percent increase, supervisors have worked with the commissioner of revenue’s office to find a rate that will generally “equalize” the impact on citizens as Blue Book values begin to align more with the decreased values showing up in the state’s “Black Book.”
During the public hearing on the tax rates held prior to the vote on Monday, only one speaker addressed the board requesting that the rate on vehicles be left the same as “COVID vehicles rates have not come down that much.”
While some owners of the 25,983 vehicles in Page County may see increases in their bottom line tax bill, some may see decreases, according to supervisors. The $4.40 rate is considered to be closest to maintaining a level tax burden on most citizens as vehicle values slowly decline from their pandemic peak.
To put the 14-percent tax hike on vehicles in perspective, consider that in 2017 the personal property tax rate in Page County stood at $4.64. It was lowered to $4.59 the following fiscal year, before being lowered again to $4.40 in 2020. At the onset of the pandemic, the board also lowered tax rates on both machinery and tools and motor carriers from $2 to $1.50 (per $100 of assessed value). Those rates remain the same three years later.
The approved tax rates rates for FY24 include (all rates per $100 of assessed value):
- $0.73 — real estate, no change;
- $4.40 — personal property, all, up from $3.85 for vehicles;
- $1.50 — machinery and tools, no change;
- $1.50 — motor carriers, no change;
- $0.50 — aircraft, no change.
At the recommendation of the commissioner of the revenue, the supervisors also set the rate for relief on vehicle taxes at 22 percent — a lingering effect of former Gov. Jim Gilmore’s car tax relief initiative.
No speakers addressed the board during a public hearing on Monday regarding the overall county and school budget, which is proposed at about $86 million. While no final vote on the budget will take place until May, the supervisors decided to commit early on Monday to contributions for two of the county’s three volunteer fire departments. A unanimous vote of support was given for a $100,000 contribution to both the Luray and Stanley volunteer fire departments. However, any consideration of a contribution for the Shenandoah Volunteer Fire Department was put on hold due to the company’s lack of transparency by not providing requested documents to the county.
District 5 supervisor Jeff Vaughan expressed disappointment in how Shenandoah’s fire company has interacted with the county, from the transition when the rescue squad disbanded to the current stalemate on the recent budget request.
“Folks need to know that they need to be open and transparent,” Vaughan said, “because that could play into future boards, as far as funding.”
The board of supervisors is expected to finalize the county’s FY24 spending plan at its May 1 work session, with Page County Public Schools scheduling a final adoption of its budget May 11. That’s just 11 days before the school division wants to have all contracts out to teachers and staff for the 2023-24 school year.
State legislators have pushed the budget process to the brink this year after failing to reach a compromise between House and Senate versions even after a special session this spring in addition to the regular 60-day short session this winter. Localities may not find out the specifics of their state funding until mid-June — just a couple of weeks before the start of the new fiscal year on July 1.
Meanwhile, schools in particular, are held up on issuing and securing contracts for next year, paused on all new hirings or new postings for positions, and stalled on the division’s health insurance renewal (which must be signed by June 1).
The school system is already making plans to potentially go back to the board of supervisors on July 17 to request additional funds — depending on which version of the state budget gets approved. However, regardless of whether the House or Senate version prevails, adjustments may still need to be made once revenue figures — the state being a key one — are finally settled.
To view the county’s proposed FY24 budget, CLICK HERE.
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