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Staff REPORT
Public Hearing ITEM
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| | | | | | | | SUBJECT:
| Town Manager's Proposed Real Property Tax Increase (effective 01.01.2020)
| DATE OF MEETING:
| March 24, 2020
| | Staff CONTACT(S): | David A. Mekarski, AICP, Town Manager |
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SUMMARY and RECOMMENDATIONS:
Attached is a copy of the ad pertaining to the 2020 Real Estate Tax Rate Public Hearing on March 24, 2020. Many factors have changed due to the Coronavirus pandemic since the Town Manger prepared the FY 2021 Proposed Budget that recommended a 2 cent increase in the real property tax rate for 2020 of $0.24, from $0.22 in 2019. Furthermore, in order to provide Town Council maximum flexibility during the budget deliberation process, the public hearing advertisement proposed a maximum real property tax rate of $0.26.
The Town Manager will be working with the management team to radically reexamine our revenue and expenditure projections and revise our programs and priorities in order to address the emergency pandemic our nation, state, county and town are now facing. It is our intention to present modifications to the budget request during the April 8, 2020 budget work session that will allow reduction of the proposed 2020 real property tax rate to $0.22, no change from the 2019 rate. Per Code of Virginia, municipalities must advertise a tax rate increase when real property assessment revaluations exceed 1%. For 2020, Purcellville’s real property assessments increased by 5.31% resulting in an equalized tax rate of $0.212. The equalized tax rate is the rate that would levy the same amount of revenue in 2020 as was levied in 2019 for existing properties. The budget schedule recommends Town Council adopt the 2020 property tax rates during the April 14th meeting, to allow staff sufficient time to prepare and mail 2020 tax bills by May 5th for a June 5th due date.
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