Albemarle Supervisors will not move forward with personal property tax rate increase in 2026

When Albemarle County Supervisors vote on a budget for FY2027 on April 22, the revenue and spending plan will not include additional funds from a 15 cent increase on the personal property tax rate. That money would have gone to the Albemarle Housing Investment Fund.

On March 18, a majority on the Board voted to advertise that rate for public hearing, but there were not four votes to proceed after a series of public hearings held on April 15.

Here is the presentation for all four public hearings.

Fee increase vote deferred to April 22

The first public hearing covered an increase in the fees paid by anyone applying for a permit that needs review from the Community Development Department.

“The bottom line here is there is a proposed change of a 15 percent increase to fees that would be implemented on January 1, 2027,” said Andy Bowman, Albemarle’s assistant chief financial officer. “So this would not go into effect at the start of the fiscal year. Customarily there’s been some delay when community development fee changes go into place and so this is prepared for January.”

Bowman said this would generate about $266,000 in additional revenue. The last time the fees were updated was in FY2022 and these changes were recommendations of the Berkley Group.

“Tonight’s hearing on the community development fees is not about a change in the philosophy of terms of who pays for what more,” Bowman said.” “It’s more about just updating for the cost of business that has not taken place in several years.”

The only speaker at this public hearing was Neil Williamson of the Free Enterprise Forum, an advocacy organization that represents the development community. He felt the justification for the higher rates had not been demonstrated.

“Tonight you’re considering a significant rate increase, not based on a comprehensive rate study, but based on a recommendation in a previously submitted rate report that rate fees should be reviewed regularly,” Williamson said.

Williamson also called for the repeal of a four percent “technology surcharge” applicants now have to pay.

Supervisor Sally Duncan of the Jack Jouett District called for a delay in implementing the fees.

“These fees in particular get passed down to people who are buying housing [and] Increases the cost of housing,” Duncan said.

The Board voted unanimously on a motion to defer action until April 22.

Tax rate public hearings

Next came the public hearing on the real property tax rate which would remain the same at $0.894 per $100 of assessed value. Because real property assessments increased by 6.2 percent, the county brought in additional revenue and the “lowered” tax rate would have been $0.842 per $100 of assessed value.

Rob Myers was the first speaker at this public hearing and he called for the county to lower the rate because many other bills are also increasing.

“Last year I had a total projected tax increase of 11.3 percent,” Myers said. “For the last two years, 28.1 percent. Dominion Energy just hit me with over 20 percent this year. [Albemarle County Service Authority, double digit increase. I’ve been retired for almost 14 years. This is not sustainable. I mean you can’t squeeze so much blood out of this turnip or turnips like me.”

The two other speakers had similar thoughts. One of them spoke first at the public hearing on the personal property tax increase. Phil Riese is the chair of the Albemarle County Republican Committee who urged Supervisors to not move forward.

“Albemarle already has one of the highest car tax rates in Virginia,” Riese said. “It is ranked 19th out of 133 localities. Last year, the board raised the car tax by 32 cents. If this increase is approved, that’s a 47 cent increase in just two years. This is not a small adjustment.”

Michael Monaco of the group Livable Cville urged Supervisors to proceed with the rate increase.

“I see that the county received about 7.3 million in requests from the Affordable Housing Fund this year,” Monaco said. With this tax rate increase, we would have enough to meet that need next year.”

This year the county distributed $4 million from the fund as I reported for C-Ville Weekly.

Finally the public hearing for the FY2027 budget was held and several people spoke. For the sake of time, I’ll move on to Board discussion of the personal property tax rate.

Deliberations

From the start, Supervisor Bea LaPisto Kirtley said she would not support the personal property rate increase. She had been the lone vote against advertising the hike.

Supervisor Fred Missel had been the one who floated the idea of the 15 cent increase at the March 18 work session. However, he said could not cast a yes vote.

“Where I’ve come down on this after getting a lot of input from the public, which I greatly appreciate, and learning more about the challenges that we’re facing and also, you know, recent impacts on gas costs, fuel costs, etc. I am no longer in favor of supporting a 15 cent personal property, machinery and tools tax increase,” Missel said.

Missel said he would support finding other ways to increase money for the Albemarle Housing Investment Fund such as using money set aside for other reserves.

Supervisor Mike Pruitt said the local government needs to step into provide money for the production of housing for nonprofits because the market is not serving the overall community needs.

“I see that as on the level of fire and rescue, I see that as on the level of providing transit,” Pruitt said. “I see that on the level of having asystem of zoning regulations, because it’s something that is not otherwise provided in this county anymore if we are not doing something about it. I don’t like paying more on my car tax, but I think it’s the way we have to get there. Or another tax.”

Supervisor Duncan said she supported the increase.

Supervisor Mallek said she did not.

“I’m not in favor of the 15 cent increase in the personal property tax because it will crush the people who have the least ability to manage it,” Mallek said.

Supervisor Ned Gallaway said he does not think he would have imagined increasing the personal property tax rate to pay for housing a few years ago but he does now.

“I’m starting to see that horizon to get there and I’m saying that we need to invest in the affordable housing investment fund,” Gallaway said. “I know what those dollars go for, and I think it’s a high enough need and priority for me that I will remain in support of the car tax for all of the monies to go to that fund.”

A three to three vote is a deadlock. There was a lengthy discussion about how to provide additional funds and that discussion will be written up before the Board’s final vote on April 22.

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