Norfolk, Chesapeake consider real property tax increases; public hearings scheduled

NORFOLK, Va. — As cities around the 757 are creating their budgets for next fiscal, some are weighing the possibility of increasing the property tax.

But first, they will hold public hearings to allow residents the chance to sound off on the proposals.

Chesapeake

The City of Chesapeake issued the following proposal for the 2024-2025 fiscal year:

1. Assessment increase: Total assessed value of real property, excluding additional assessments due to new construction or improvements to property, exceeds last year's total assessed value of real property by 4.12 percent.
2. Lowered Rate Necessary to Offset Increased Assessment: The tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusions mentioned above, would be $0.97 per $100 of assessed value. This rate will be known as the "lowered tax rate."
3. Effective Rate Increase: The City of Chesapeake, Virginia, proposes to adopt a tax rate of $1.01 per $100 of assessed value. The difference between the lowered tax rate and the proposed rate would be $0.04 per $100, or 4.12 percent. This difference will be known as the "effective tax rate increase." The above figures and calculations do not include special levies, such as those for mosquito control.
   
   Individual property taxes may, however, increase at a percentage greater than or less than the above percentage.
4. Proposed Total Budget Increase: Based on the proposed real property tax rate and changes in other revenues and the operational plans for the upcoming year, the total budget of the City of Chesapeake will exceed last year's by not more than 4.0 percent.
5. Non-Taxable Property: Total assessed value $5,429,984,200. Total reduction in tax revenue resulting from exemption - $54,842,800.

Chesapeake's public hearing on the proposal is scheduled for Tuesday, April 9, 2024, at 6:30 p.m. It will be held at City Hall, located at 306 Cedar Road.

Norfolk

The City of Norfolk is proposing to increase property tax levies:

1. Assessment Increase: Total assessed value of real property, excluding additional assessments due to new construction or improvements to property, is estimated to exceed last year's total assessed value of real property by 5.94 percent.
2. Lowered Rate Necessary to Offset Increased Assessment: The tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate with the exclusions mentioned above, would be $1.18 per $100 of assessed value. This rate will be known as the "lowered tax rate."
3. Effective Tax Rate Increase: The City of Norfolk proposes to adopt a tax rate of $1.23 per $100 of assessed value. The difference between the lowered tax rate and the proposed rate would be $.05 per $100, or 4.24 percent. This difference will be known as the "effective tax rate increase." Individual property taxes may, however, increase at a percentage greater than or less than the above percentage.
4. Proposed Total Budget Increase: Based on the proposed real property tax rate and changes in other revenues, the total budget of the City of Norfolk will exceed last year's budget by 6.2%.

Norfolk's public hearing on the proposal will be held on Tuesday, April 30, 2024, at 5 p.m. It will be held at Slover Library, located at 235 East Plume Street, Room 650.

Comments at the hearing will be limited to the budgetary effect of increased real estate reassessments only. If you want to speak before the city council, you must register with the city clerk by 3 p.m. on April 30 by calling 757-664-4253 or emailing ccouncil@norfolk.gov.