93-12-08 Median Real-Estate and Personal-Property Tax Rates Both Show 1993 Increases in Virginia

MEDIAN REAL-ESTATE AND PERSONAL-PROPERTY TAX RATES
BOTH SHOW 1993 INCREASES IN VIRGINIA

     CHARLOTTESVILLE, Va., Dec. 8 -- The median real estate tax rate for both
cities and
counties in Virginia rose slightly in 1993, according to a study by the
University of Virginia's Center
for Public Service.
     The median tax rate on real property was $1.10 per $100 of assessed
value for cities and 67
cents for counties, according to the report, "1993 Tax Rates in Virginia's
Cities, Counties and
Selected Towns," by economist John L. Knapp.  This compares to median rates
of $1.09 for cities
and 66 cents for counties in 1992.
     Real estate tax rates rose in 14 cities and 32 counties.  They stayed
the same in the majority
of cities (24) and counties (54).  Rates were reduced in three cities and
nine counties.
     The real estate tax rates ranged from a high of $1.49 in Petersburg to a
low of 32 cents in
Mecklenburg County.
     The next highest rates were $1.445 in the city of Richmond and $1.44 in
the city of Manassas
Park.  The second and third lowest rates were 33 cents in Halifax County and
42 cents in
Cumberland County.
     Knapp cautioned that such comparisons are rough because of varying
assessment ratios
among localities.  Although populous cities and counties reassess either
annually or every two years,
many smaller localities have general reassessments less frequently.  When
assessments don't keep
up with rising market values, the assessment ratio goes down.
     Real property taxes are the most important source of local tax revenue
and account for some
47 percent of city tax revenues and 57 percent of county tax revenues, Knapp
said.  
     The 300-page study, the 12th annual edition of the center's publication
on tax rates across
the state, contains information on 13 major tax categories and shows tax
rates for all the state's 95
counties and 41 cities, plus 142 towns.  It also has information on many
special tax provisions such
as tax relief programs for the elderly.
     The median personal property tax on motor vehicles, another important
source of local
revenue, rose from the previous year for both cities and counties.
     The study adjusts local personal property tax rates to account for
variations in the source
of assessment, the value concept, and the local assessment ratio.  The media
adjusted rate for cities
was $2.83 per $100 in 1993, compared to $2.69 in 1992, a 5.2 percent
increase.  The median for
counties was $2.23 per $100 in 1993, compared to $2.08 in 1992, a 7.2 percent
increase.
     Knapp noted that the real estate and personal property taxes are the
only two major local
taxes with no state restrictions on rates.
     The "Tax Rates" publication enjoys a wide audience composed of state and
local government
officials, taxpayer groups, property owners, economic and community
development specialists, real
estate agents and developers, newcomers to Virginia, businesses, chambers of
commerce, candidates
for elected office, and anyone who wants to know more about local taxation in
Virginia.
     The publication is available from the University of Virginia Center for
Public Service at
(804) 982-5638.  Cost is $20 plus tax and shipping.
     For additional information John Knapp may be reached at the above
number.
                               ###
                                                 December 7, 1993

 
Karen Castle, Office Services Specialist, University News Office
P.O. Box 9018, Booker House, Charlottesville, VA  22906
(804) 924-7116, kac@virginia.edu

[Submitted by: Karen A. Castle  (kac@uva.pcmail.virginia.edu)
               Wed, 8 Dec 93 10:30:22 EST]