Subject:
Title
Intent to Adopt Real Estate Tax Rate for FY2026-27 (5 min. Staff Presentation)
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
March 14, 2026, Town Council Work Session
March 23, 2026, Town Council Work Session
April 27, 2026, Town Council Public Hearing
May 4, 2026, Town Council Meeting
EXPLANATION AND SUMMARY:
A public hearing on the proposed real estate tax rate of $0.1950 per $100 of assessed value for fiscal year 2026-27 was held April 27, 2026. Following the public hearing, the Vienna Town Council motioned at the May 4, 2026 Town Council meeting to advertise a notice of intent to adopt a real estate tax rate of $0.1925 per $100 of assessed value. The FY2026-27 budget to be adopted is based on the rate of $0.1925, along with the 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 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 $0.1925 per $100 of assessed value exceeds the lowered tax rate of $0.1860 per $100 of assessed value by $0.0065, resulting in an effective tax rate increase of 3.5%.
The attached Notice of Intent to Adopt the Real Estate Tax Rate reflects the rate of $0.1925 per $100 of assessed value.
Departmental Recommendation: Recommend adoption of the tax rates as approved at the Town Council meeting on May 4, 2026.
Finance Recommendation: Recommend adoption of the tax rates as approved at the Town Council meeting on May 4, 2026.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town has conducted a public hearing and adver...
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