10% effective tax rate increase proposed for Buckingham
Unless something changes between now and when the budget is approved, Buckingham County residents are looking at a property tax increase of 10%.
According to a public notice in The Herald, the total assessed value of real property, including additional assessments due to new construction or property improvements, has increased by 10% compared to last year’s assessment.
The county’s current real property tax is 55 cents per $100 of assessed value. An equalized tax rate to offset this year’s increased assessment would be 50 cents per $100.
The Buckingham County Board of Supervisors has proposed to adopt a tax rate of 55 cents per $100 of assessed value. The difference between the equalized tax rate and the proposed rate would be 5 cents per $100, or 10%. This is referred to as an “effective tax rate increase.”
For every $100 increase on their property, a taxpayer will pay 55 cents more per year.
As an example, if a property previously valued at $100,000 saw a 10% increase, it would bring the value up to $110,000. The additional taxes this property owner would be billed would be $55 per year or $27.50 per half year.
So, while the tax rate may not actually change number-wise from its current status of 55 cents per $100, the reassessment means many taxpayers will still be paying more.
It is important to note that individual property taxes may increase at a percentage greater than or less than the above percentage.
“The reassessment increase is an overall average 10% increase. Some may see more than 10%, some may see less than 10%. Some may see larger than 10% if they have made additions or renovations and/or new construction,” Buckingham County Administrator Rebecca S. Carter said.
“However,” she continued, “if the real estate rate is lowered, the county would also have to lower the State Corporation Tax, which means the county would lose $214,000.00 for every penny reduced. With the state of the economy and what is believed to be a paramount decline in the economy, I believe we need to leave the present rate in place to remain financially within our budget.”
A public hearing on the proposed increase will be held Monday, April 13, at 6:15 p.m. in the Buckingham County Administration Building Auditorium located at 13380 James Anderson Hwy.
“While I do not support the effective tax increase, forecasting has already shown that the approved state budget over the next two years will have to be cut by at least $2 billion dollars,” District 4 Supervisor Thomas Jordan Miles III said. “That cut will trickle down and affect Buckingham County.”
Buckingham County District 7 Supervisor Danny Allen advised that the percentage may change based on appeals by landowners to the Board of Equalization.
“If anybody has any problems, they ought to still go back, get it checked and get it changed, because I’ve checked on mine. Mine weren’t right.”