Accomack County holds public hearings on budget and tax rates

Board will hold a special session Wednesday April 6, 2022 at 6 p.m. at Metompkin Middle School to discuss reassessments

The Accomack County Board of Supervisors held two public hearings Monday night.  The first was to receive comments on the proposed 2022-budget.

County Administrator Mike Mason told the Board that subsequent issues that  have arisen since the budget was formulated could result in changes in the budget include:

• The War in Ukraine and the associated spike in fuel costs impacting both residents and County operations.
• The award of an $8.2M federal grant for the Regional 911 Radio Communications Project, a project that is funded in the FY23 proposed budget by the issuance of debt which can now be downsized. This award, along with a reforecast of the meals tax, will allow for the Board to consider a 1.5 cent reduction in the real estate tax rate over the rates contained herein without a substantial overhaul of budget priorities.
•  This award, along with a reforecast of the meals tax, will allow for the Board to consider a 1.5 cent reduction in the real estate tax rate over the rates contained herein without a substantial overhaul of budget priorities.
• The notification and quantification of an unprecedented increase in used car values which have increased  an average of 22.3%, which was not budgeted for and will result in significant increases in personal property taxes for vehicle owners if action is not taken. Mason said that the staff will propose the Board consider reducing the personal property tax rate temporarily  for passenger cars, trucks and vehicles   only from $3.72 to $2.99 (preliminary) at your next meeting.
• The unfinished State Budget could affect County revenues as well.

The subject of three of the speakers was the proposed cigarette tax.  The tax is expected to result in $420,000 in additional revenues for the County .  Speaking against the tax were. Ed Pichulski, owner of Dixieland at the Maryland line, Megan Evans, Vice President of business operations at Dixieland and Victor Evans, a cigarette sales representative from Sanford.  All three asked the Board to reconsider the tax stating that increased prices would have an adverse effect on sales which would eliminate jobs.

Pichulski stated that if adopted, the tax would result in only about a $3.50 savings and many regular customers from the Salisbury and Ocean City areas would no longer come to the county to purchase cigarettes.

Other speakers included Accomack County School Superintendent Chris Holland who thanked the board for their support  and Library Trustee Dennis Custis  who told the Board that, when open, the new library will provide a level playing field for local students and a new Heritage Center which will feature thousands of documents and books that will focus on the history of the Eastern Shore.

In the second public hearing on tax rates for the 22-23 fiscal year, Don Ruthig of Onancock told the Board that  research he had done showed a wide disparity on tax rates in the Onancock area.  Ruthig said that his property which is located adjacent to the town line was assessed 26% higher than two years ago but an adjoining property owner (outside the town) only was a 1 % increase. Karen Ruthig  said that with an increase in Town taxes plus the higher county assessments could really ” hit taxpayers over the head.”

Kerry Ceasar  and Billie Ann Bowden of Chincoteague echoed the prior remarks.  Bowden said that her reassessment would result in a $400 increase in her annual tax bill, one that she could not afford. Ceasar said, ‘I’m surprised that more people aren’t here to talk about this. “

Peter Holt of Meadville Drive, Onancock said,  “I moved to VA to escape taxes in Maryland. My tax assessment went up 42% while other assessments on his street went up 20%. There is no consistency in assessments right now.”

After a discussion, the Board decided to conduct a work session Wednesday April 6 at  6 p.m. at Metompkin Middle School and to hear from County Assessor Brent Hurdle as to why there appears to be a disparity in the latest  reassessments.  The Board will also consider a temporary reduction in personal property taxes on passenger vehicles, passenger trucks and motorcycles  due to the recently inflated values of used cars.   The Board then voted to hold another special session on Monday, April 11 at 5 p.m. at Metompkin  Middle School to vote on the budget.

The law requires a seven day separation between the public hearing and the passing of the budget.  County Administrator Mike Mason said that the Board can still meet on Wednesday to discuss the budget but cannot take action until April 1

.