Northampton adopts equalized real estate tax rate of 67 cents

The Northampton County Board of Supervisors voted Tuesday night to adopt a new equalized real estate tax rate of 67 cents per $100 of assessed value, a figure required under Virginia law following the county’s latest reassessment process.

County Finance Director John Chandler explained the equalized rate is designed to keep overall tax revenues relatively level after reassessments while allowing for up to 1% growth in revenue, excluding new construction.

Chandler said Northampton County’s reassessment showed taxable property values increasing by approximately 6.3% when new construction is removed from the calculation. Including new construction and public service property, the total increase was about 8.8%.

Using the county’s current tax rate of 70.5 cents, Chandler said the county would generate approximately $24.6 million in tax revenue. Under the equalized rate calculation required by the state, that translated to a new equalized rate of 67 cents per $100 of assessed value.

“Just to remind everyone, a penny is approximately $365,000 of revenue for the county,” Chandler told supervisors during the presentation.

County officials also discussed a proposed effective tax rate of 69.95 cents, which would be considered later as part of the fiscal year 2027 budget process. Chandler said the equalized rate adoption does not finalize the county budget or actual tax rate for next year.

Cape Charles Town Councilman Paul Grossman cautioned residents that the county’s budget process is not complete and argued the current discussion could create confusion.

“I don’t want to pull the wool over everybody’s eyes,” Grossman said. “The likelihood, in June, is going to be be a higher tax rate in order to cover some of the deltas that you bring to the table at that time.”

Supervisors acknowledged concerns about the long-term impact of rising assessments and taxes, particularly on retirees and residents living on fixed incomes.

Supervisor Oliver Bennett voiced concern that continued increases could eventually make it difficult for some residents to remain in their homes.

“I don’t want to see us get to the point that we’re taxing folks out of what they may own,” Bennett said. “It doesn’t take too many years for $200 or $300 increases to add up.”

Bennett also said the county must carefully weigh spending priorities during the upcoming budget process.

“Sometimes we may have to tighten our belts a little bit,” he said. “I want to make sure people can stay here and live with comfort and health and life.”

Supervisors also discussed the importance of attracting additional businesses to help broaden the county’s tax base and reduce the burden on homeowners.

The equalized rate itself is largely a mathematical calculation required by state law and separate from the final tax rate decision that will accompany adoption of the fiscal year 2027 budget later this year.

Supervisor Betsy Mapp noted that many Northampton County residents are retirees living on fixed incomes.

“We have to look out for our elderly because the population of elderly is growing in Northampton County,” Mapp said.

After discussion, supervisors voted unanimously to approve the equalized tax rate of 67 cents per $100 of assessed value. Officials said additional budget work sessions and public hearings will take place before the county adopts its final fiscal year 2027 tax rate and budget.