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7:55 p.m. - 8:25 p.m. Public Hearing on FY2024-25 Proposed Tax Rate
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DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
March 11 and March 16, 2024, Council conference sessions on the FY 2023-24 budget
EXPLANATION AND SUMMARY:
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 $0.195 per $100 of assessed value for fiscal year 2024-25.
The State Code of Virginia, section 58.1-3321, requires that a locality calculate the "Lowered Rate Necessary" based on assessments less new improvements to generate the same tax levy as the previous year. This lowered rate for Vienna in FY 2024-25 is $0.1888 per $100 of assessed value. The "equalization rate" is the rate required to generate a levy with a 1% increase over the previous year's tax levy on the same assessed base. The equalization rate is $0.1907 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 $0.195 is $0.0043 higher than the equalization rate; therefore, a public hearing is required.
Town Council has reviewed the budget during conference sessions on March 11 and 16, 2024. 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 12th consecutive year with no change or a decrease in Vienna's real estate tax rate. The proposed FY2024-25 budget is based on this $0.195 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...
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