Subject:
Title
Intent to Adopt Real Estate Tax Rate for FY2025-26
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
March 15 and March 17, 2025, budget work sessions
April 28, 2025 - Public hearing
EXPLANATION AND SUMMARY:
A public hearing on the proposed real estate tax rate of $0.1950 per $100 of assessed value for fiscal year 2025-26 was held April 28, 2025. At the public hearing, the Vienna Town Council approved the rate to be adopted. The FY2025-26 budget to be adopted is based on the rate of $0.1950, along with continuation of the current bank net capital rate of $0.80 per $100 of valuation, residential utility tax rate of 20% of the first $15 and a commercial utility tax rate of 15% of the first $300.
The Code of Virginia, section 58.1-3321, B. defines the "Lowered Tax Rate" as the tax rate which would levy the same amount of real estate tax as the previous year when multiplied by the new assessed value. The State Code further defines the "Effective Rate Increase" as the difference between the Lowered Tax Rate and the Proposed Tax Rate. For the Town of Vienna, the proposed tax rate of $0.1950 per $100 of assessed value exceeds the lowered tax rate of $0.1878 per $100 of assessed value by $0.0072, resulting in an effective tax rate increase of 3.9%.
The attached Notice of Intent to Adopt the Real Estate Tax Rate reflects the rate of $0.1950 per $100 of assessed value.
Departmental Recommendation: Recommend adoption of tax rates as approved at the public hearing on April 28, 2025.
Finance Recommendation: Recommend adoption of tax rates as approved at the public hearing on April 28, 2025.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town Council has advertised and conducted a public hearing on the proposed tax rates. The Town Council may adopt the proposed tax rates in its discretion.
Town Manager's Recommendation: I recommend the Town Council approve a resolution setting tax rates for the fiscal year beginning July 1, 2025, as presented.
Cost and Financing: $14,715,000
Account Number: 100-000-0000-00000-31121 & 100-000-0000-00000-31123
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. N/A
Decision Needed by This date: May 19, 2025
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to approve a resolution setting tax rates for the fiscal year beginning
July 1, 2025 as follows:
• Real Estate Tax Rate of $0.1950 per $100 of assessed valuation
• Bank Net Capital Tax Rate of $0.80 per $100 of valuation
• Residential Utility Tax Rate of 20% of the first $15
• Commercial Utility Tax Rate of 15% of the first $300."
And
“I further move that the Town Clerk be directed to advertise a Notice of Adoption.”
Or
Other action deemed necessary by Council.