Subject:
Title
Intent to Adopt Real Estate Tax Rate for FY 2022-23
Body
EXPLANATION AND SUMMARY:
A public hearing on the proposed real estate tax rate of $0.2125 per $100 of assessed value for fiscal year 2022-23 was held April 25, 2022. At the public hearing, Council approved a lower rate of $0.2050 to be adopted. The FY 2022-23 budget to be adopted is based on a reduced rate of $0.2050 (one and three-quarters of a cent reduction), 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 $0.2050 per $100 of assessed value is lower than the Lowered Tax rate, resulting in an effective tax rate decrease of 2.0%.
The Notice of Public Hearing, attached, reflects the proposed rate of $0.2125 per $100 of assessed value, which was reduced to the rate to be adopted of $0.2050 per $100 of assessed value.
The real estate tax rate of $0.2050 per $100 of assessed value is the basis for the FY 2022-23 budget to be adopted. The proposed budget was presented and reviewed by Town Council at work sessions on March 14, 16 and April 18, 2022.
The Town plans to advertise the tax rate at $0.2050 (or 20.50 cents) per $100 value for adoption.
Strategic Plan Initiative: Vienna is a fiscally responsible community.
Board or Commission of Interest: N/A
Departmental Recommendation: Recommend adoption of tax rates as approved at the public hearing on April 25, 2022.
Finance Recommendation: Recommend adoption of tax rates as approved at the p...
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