For the first time since 1976, there’s been a decline in Charlottesville home values—a 2.19% drop—plus a 0.34% drop in commercial property values. That adds up to a $175k drop in city revenue, assuming a stable tax rate, which isn’t bad. Last year, home values went up 1% in the city, despite the national trend.
Albemarle home values dropped by 4%, while commercial properties dropped by 0.64%—basically the same ratio that the city saw. That’s not as bad as the county planned. With the current property tax rate at 74.2¢ per $100 of assessed value (that is, a 0.742% tax on property value), they’d have to take the rate up to 76.6¢ to keep revenue stable. Given the opposition to a tax increase among the Republican majority on the board—they support keeping the rate at the current rate—that’s going to mean a a 3.2% decrease in spending based on that income.