Sales and meal tax revenue continue to underperform in Charlottesville

We are now halfway through the final quarter of fiscal year 2025 which means enough time has passed for a report on the city’s finances through March 31, 2025.

“Revised revenue projections indicate that revenues are tracking slightly above the adopted budget of $251,948,630, by $4.0M or 1.89 percent,” writes City Manager Sam Sanders in a written report for City Council’s May 19 meeting. “As a note of comparison, the financial report issued for the 3rd quarter last year, anticipated a revenue surplus of 5.41 percent or $11.5M.”

The city has collected $2.2 million more from real property tax than anticipated and nearly $1 million more in personal property tax revenues.

However, sales, lodging, and meals tax collections are all under the budgeted amounts.

• Through March 31, 2025 the city collected an estimated $14 million in sales and use tax. The budgeted amount is $15.8 million.
• Through March 31, 2025, the city collected an estimated $18.1 million in the meals tax just below the $18.2 million anticipated.
• As for lodging tax, the city budgeted $9.56 million and collected $9.1 million.

“We do note that with the lower percentages here, we are getting back more to what we think are our normal trends for revenue growth,” said Krisy Hammill, the city’s budget director. “We’re not going to be experiencing double digits percentages anymore.”

Before you go: This story was originally sent out in the May 19, 2025 edition of Charlottesville Community Engagement. The quote from Krisy Hamill was added after listening to the meeting. If you’d like to help keep this sort of reporting going, take a look here.