Accomack will propose lower real estate and personal property tax rates on cars, passenger trucks and motorcycles

The Accomack County Board of Supervisors met Wednesday in what was a work session to clarify the 2022 real estate tax assessment requirements and policies  and to discuss what tax rates will be included in the proposed budget which will be voted on Monday, April 11.

County Assessor Brent Hurdle explained to the Board that the level of assessment is determined by the median sales ratio.   The State of Virginia allows localities to assess real estate in a window ranging from 90% to 110% of the average value of properties in the county.  Hurdle said that the current median sales ratio as reflected in the prior assessment is below the minimum at 84%.  Hurdle continued that one factor in some of the higher assessments has been to raise the median sales ratio to be within the state required limits.  Hurdle said that the current assessment median sales ratio is 100%.

If a jurisdiction fails to assess real estate between 90 and 110% of value, the State will withhold all ABC tax funds until the situation is remedied.

Hurdle went on to say that real estate values have increased substantially since the 2020 assessment due to higher real estate prices.  That would be the major driving factor in the increasing assessments in the current cycle.

Any property owner who questions the assessment of his or her real estate has three options.   The first is to contact the Tax Assessor’s office and request a review.  The second is to appeal the assessment to the Board of Equalization which will meet later in the Spring.  The third would be to take the issue to court.

County Administrator Mike Mason pointed out that the Board of Supervisors has no jurisdiction whatsoever over any real estate assessment.  However the Board can lower the tax rate.

Although the Supervisors could not legally vote on any proposals at this meeting, they did agree by consensus to lower real estate taxes county wide by 1.5 cents per $100 valuation.  This will be included in the budget proposal which will be voted on Monday night.

Another piece of good news was that the Board agreed to lower the tax rate temporarily for passenger cars, passenger trucks and motorcycles.  The General Assembly granted localities that authority in this year’s legislative session. County Administrator Mike Mason had told the Board previously that the large increase in the value of used cars stemming from the pandemic would have triggered much higher personal property taxes on these vehicles.  Mason asked the Board to reduce the tax rate temporarily from $3.72 per $100 of evaluation to $2.99 which is a 20% reduction.  Mason said that he doesn’t expect the higher prices for these particular vehicles to continue indefinitely.

Finally, Mason said that following the public hearing on Monday in which there were questions about the effects of the cigarette tax on retail sales, he has received information that the volume of cigarette sales in the County greatly exceeds the original estimates.  He told the Board that it may take some time to compile and verify  all of the information but it could possibly result in a lower per carton tax than the $4 included in the budget.

Comments were made that a tax would have to be instituted that would still make it worthwhile for customers from Maryland and southern Delaware to travel to Accomack County to purchase cigarettes.  The Virginia state tax on cigarettes is much less than those in Maryland or Delaware.

Mason said that the staff will prepare a report that would analyze the situation.  He said that it is possible that a much lower per carton tax could be levied that would result in the county still receiving the estimated $420,000 annually in extra revenue, which is included in the current budget, but at the same time lowering the $4 per carton presently proposed.

Mason stated that the budget is in flux because of several factors, including the stalemate on the State Budget and the news that a federal grant for the 911 communications rebuild will free the county from having to borrow over $7 million to finance it.  Supervisor Crockett asked Mason what the bottom line of the $79 million proposed budget will be taking this all into consideration.  Mason said that he estimates, with projected savings the final budget will be in the neighborhood of $71 million.

The $71 million dollar budget now shows a surplus of $230,000.  Mason asked for a consensus that the surplus be placed in the contingency fund to help fund increases in fuel and other expenses the County will  face during uncertain economic times.  The Board agreed.

The Board of Supervisors will meet again April, 11 at 5 p.m. at Metompkin Elementary School for final discussions and a vote on this year’s budget.

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