Albemarle budget officials break down how UVA-related entities make payments to the county

Albemarle County Supervisors have been reviewing County Executive Jeffrey Richardson’s recommended $629 million budget for fiscal year 2025. As part of that process, staff produces written responses to questions have have come up so far.

At a previous work session, one Supervisor wanted to know how the figure of $133,225  was calculated for the University of Virginia to pay instead of property taxes

A written response came in the third set of answers to Supervisors’ questions so far.

“There are three different University of Virginia-related entities in which the County has a relationship that are based on either existing agreements or state law,” states the response. 

UVA itself is exempt from paying property tax and most of Grounds is within Albemarle County. However, the county can charge to offset the cost of education, public safety, and solid waste services for faculty and staff who live in UVA housing. 

In 2023, that service charge was $126,890.

At the same time, properties owned by the UVA Foundation pay the full real estate tax.

“As of January 1, 2023, the UVA Foundation is the largest real estate taxpayer in the County, with total assessed value equal to $226,769,000, equating to $1,936,607 in real estate taxes,” the report continues. 

The third entity is the UVA Physicians Group which has a 2010 agreement with Albemarle County to pay a payment-in-lieu of taxes rather than real estate taxes.

“The PILOT is equal to the real estate property taxes, at the rate established by the Board each year, for all Physicians Group properties that are not used by the University for scientific, educational, or literary purposes,” the report continues.

The amount paid by this group in 2023 was $36,801. 

here are a series of answers from questions so far. Here’s are some things I learned:

• Albemarle is evaluating properties that would be suitable for a pocket park somewhere in the urban ring. Albemarle County has added 67 firefighter positions since FY20. (from the first set of questions answers)
• Albemarle enacted a plastic bag tax that took effect in January 2023 and the county collected more than double the $20,000 expected. The FY25 budget anticipates $120,000 in revenue. (from the second set)
• Albemarle would collect an additional $871,992 in local revenue if the transient lodging tax is increased from eight percent to nine percent. That would be split among the schools (54 percent), local government (36 percent), and debt service (10 percent). (from the third set)

Before you go: The time to write and research of this article is covered by paid subscribers to Charlottesville Community Engagement. This particular post is actually a hybrid of two different segments that were in either the Week Ahead for March 25, 2024 as well as the March 25, 2024 regular newsletter. The audio version is in the March 26, 2024 podcast. As Town Crier Production grows, you’ll begin to see much of this writing in different places.