Supervisor discusses possible decrease in personal property taxes
ALBEMARLE COUNTY, Va. (CBS19 NEWS) -- Donna Price, the Chair of the Albemarle County Board of Supervisors, says the board is considering reducing the personal property tax rate from 2021.
She says the temporary adjustment is because real estate taxes went up eight percent last year, and personal property tax payments have sky-rocketed as well.
This all boils down to supply and demand.
Price says personal property tax amounts usually go up about four percent each year, but this year, it jumped 26 percent.
These kinds of taxes include cars, trucks, and mobile homes.
The reason is because of the pandemic and strain on supply chains, which means everything is worth more, so people are paying more even if the rates stay the same.
For example, the value of a used car is up about 40 percent.
On the county budget level, Price says the last two years have affected projections for revenues and expenditures, and it's been a tough time.
"We have deferred and delayed a number of capital improvement projects. We still have to do those things. We still have to build new schools, we still improve the courts, we still have to open up Biscuit Run Park," she said. "Those are part of amenities that we came to know and appreciate during the pandemic and they require funds."
Along with this temporary fix, Price says there could be a slight increase in food and hotel taxes.
She says she doesn't think this will cause a big impact on business owners.
The board will host a public hearing on April 27 about the 2023 budget and tax rates. Supervisors will take final actions on May 4.