Subscribe | Advertise
Contact Us | About Us
Submit News

Home · News · Videos · Photos · Community · Sports · School · Church · Obituaries · Classifieds · Supplements · Search


Text size: Large | Small    

County proposes three-cent tax hike

by Larry S. Chowning

The Middlesex County Board of Supervisors voted Tuesday to hold a public hearing on April 24 on a $19,159,533 proposed 2012-13 (FY13) county budget that includes a 3-cent real estate tax hike.

County taxpayers are currently paying 43 cents per $100 of assessed real estate values. If approved, the rate will be raised to 46 cents per $100.

Two cents of the 3-cent increase is needed to offset lower real estate values determined by the recent real estate reassessment.

Following last year’s reassessment, each penny on the real estate tax rate will now generate $211,000 in revenue—compared to $218,000 in the past. This drop in taxable revenue will cause about a $300,000 shortfall, and an additional 2 cents on the tax rate will be needed to offset this.

The other penny in the 3-cent hike is needed to offset increased costs in county government, losses in state revenues and additional debt service. Earlier in the budget process, it was estimated the county needed a 4-cent tax increase, 2 cents for the reassessment and 2 cents to offset debt service connected with borrowing funds for the Syd Thrift Sports Complex at Middlesex High School.

County administrator Charles Culley explained at a budget work session on Monday that retired debt this year from paid off loans on St. Clare Walker Middle School will save a half-cent, and other savings in the budget amounted to another half-cent, so only a 3-cent tax hike is needed.

In addition, Culley also indicated it would take $72,000 from the county’s fund balance to complete a balanced budget.

The county budget calls for an 8% salary increase for salaried county employees and a 3% increase for hourly employees.

Five percent of the 8% pay raise is part of a proposed state mandate that requires the county to provide a 5% raise for salaried employees to offset a 5% increase in the employees’ contribution to the Virginia Retirement Service (VRS) plan.

The proposed budget calls for the personal property tax rate to remain $3.50 per $100 worth of value; mobile homes, 46 cents per $100 in value; and machinery and tools, $3.50 per $100 in value.

posted 04.04.2012

By commenting, you agree to our policy on comments.