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File #: 21-2220    Version: 1 Name:
Type: Action Item Status: Passed
File created: 4/5/2021 In control: Town Council Meeting
On agenda: 4/26/2021 Final action: 4/26/2021
Title: Public hearing on the FY 2021-22 proposed real estate tax rate
Attachments: 1. Notice of Public Hearing - Effective Tax FY 2022, 2. Reg Require Pub Hearing Tax Rate
Public hearing on the FY 2021-22 proposed real estate tax rate
Each year, as the Town's budget for the following year is developed, a proposed real estate tax rate is recommended by the Town Manager and reviewed by Council during budget conference sessions. This public hearing is being held to give Vienna residents an opportunity to provide public comment on the proposed real estate tax rate of $0.2250 per $100 of assessed value for fiscal year 2021-22.

The State Code of Virginia, section 58.1-3321, requires that a locality calculate the "Lowered Rate Necessary" to generate the same tax levy as the previous year, excluding new construction. This lowered rate for Vienna in FY 2021-22 is $0.2199 per $100 of assessed value. The "equalization rate" is the rate required to generate a levy of 101% of the previous year's tax levy on the same assessed base. The equalization rate is $0.2221 per $100 of assessed value. Per state code, Council may adopt a rate no higher than the equalization rate without holding a public hearing. The proposed tax rate of $0.2250 is $0.0029 higher than the equalization rate; therefore, a public hearing is required.

Town Council has reviewed the budget during conference sessions on March 13 and 15 and April 19, 2021. The Finance Department is presenting the proposed real estate tax rate and other tax rates at this public hearing for input from the public.

This is the seventh consecutive year with no change in Vienna's real estate tax rate. The proposed FY2021-22 budget is based on this $0.2250 per $100 of assessed value rate along with continuation of the current bank net capital rate of $0.80 per $100 of valuation as well as a residential utility tax rate of 20% of the first $15 and a commercial utility tax rate of 15% of the first $300.

Town Council has the option to adopt the proposed tax rates or to lower them from advertised amounts as it sees fit.

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