High county land values mean less state money
by Larry S. Chowning
The 2007 figures used to determine composite indexes for the next two years for each county in Virginia have been released, and Middlesex’s total real estate values are the fourth highest in the area and its composite index is the third highest.
Middlesex’s composite index, which determines the county’s ability to fund its own school expenses and other aspects of local government, will increase from .6786 to .7431.
This increase means county taxpayers will pay about 74 cents of every dollar that is spent toward local school operating expenses, and will have to come up with an additional $300,000 next year to cover the lost state revenue.
The fair market value of a county’s real estate is the main factor used in determining a composite index, and Middlesex has considerable “high value” waterfront property that continues to cause the county’s composite index to increase.
Middlesex is a much smaller county in square miles than adjacent Essex County, yet Middlesex’s “true value of property” is nearly $1 billion more than Essex. Middlesex’s assessed real estate values total $2.996 billion compared with $2.059 billion for Essex.
Middlesex’s last composite index was figured on $2.378 billion of true value of real estate, so in two years the value has increased over $600 million.
Gloucester, Lancaster, Mathews, Northumberland and Middlesex counties are all near the mouths of rivers that lead into the Chesapeake Bay. Land values in these counties are higher than in Essex and King and Queen, which are further upriver.
Northumberland’s composite index is based on about $4.33 billion worth of true property value; Gloucester is based on $4.67 billion; Lancaster, $3.68 billion; Mathews, $2.11 billion; and King and Queen, $1.07 billion.
Northumberland and Lancaster composite indexes are set at the highest level allowed—.8000. This means these counties must pay 80 cents out of every dollar toward financing its own school system and some other governmental agencies.
Middlesex has the third highest composite index in the area at .7431. Mathews is at .5883; Essex .4869; King and Queen .4404; and Gloucester .3704.
Also used in compiling a county’s composite index is adjusted gross income, taxable sales tax, school population, and total population.
Middlesex’s gross adjusted income is about $266 million; Lancaster is $366 million; Gloucester, $886 million; Mathews, $279 million; King and Queen, $132 million; Essex, $208 million; and Northumberland, $302 million.
Gross adjusted incomes are figured from permanent residents of a county and “out-of-state non-resident” property owners.
The gross adjusted incomes of Middlesex property owners who live in other counties in Virginia are only included in the county in which they reside.
Middlesex’s taxable sales are about $84 million. Lancaster, $159 million; Gloucester, $372 million; Mathews, $40 million; King and Queen, $15 million; Essex, $191 million; and Northumberland, $67 million.
Real estate values are the number one factor in determining a county’s composite index, gross income is second, and taxable retail sales third, said school superintendent Rusty Fairheart.
Middlesex has high waterfront land values. Much of this land involves second homes of people who live permanently in other areas. Thus, the county shows a low year-around population and a low school population.
Middlesex’s population is about 10,235 and its public school population is about 1,251. When the county’s low population is figured in with high real estate values, it appears that the county is quite wealthy. Using composite index figures, Middlesex is considered the 13th wealthiest of Virginia’s 96 counties.
The population and public school enrollment of a county impacts its composite index. Lancaster is like Middlesex in that it has a small population (11,593) and small school enrollment (1,335). Northumberland is similar with a population of 13,316 and a school enrollment of 1,430.
Gloucester and Essex have larger school enrollments, which help to lower their composite indexes. Gloucester has a population of 35,960, and a school enrollment of 5,910. Essex has a population of 10,683, and a school enrollment of 1,608.
King and Queen has a population of 6,939 and a school enrollment of 739. Mathews has a population of 9,249, and a school enrollment of 1,280.
The composite index is figured by the state every two years. It will be re-evaluated in 2011, and current 2009 figures will be used in the formula. Since there will be no reassessment of real estate before the re-evaluation, Middlesex taxpayers probably will be strapped with high composite index figures for several years to come.
