Charlottesville Finds Solution to Potentially Avoid Real Estate Tax Increase
CHARLOTTESVILLE, Va. (WVIR) - As Charlottesville City Council works to balance next year's fiscal budget, city leaders may have found a way to avoid a potential tax increase.
After weeks of discussion about how to balance the city's proposed budget, councilors may have found a solution that would not include a real estate tax increase for people living in the city.
On Tuesday, March 19, city staff presented council with an option that would move $850,000 designated for debt to go back into the general fund.
This option would allow councilors to balance the general fund with a little over $200,000 left over to go toward affordable housing.
City Councilor Kathy Galvin says just because the city has plans to avoid the real estate tax this year, that doesn’t mean it will be avoided later on down the road.
"I think we're going to be looking at the need for a more comprehensive look at how we're going to raise our revenue,” Galvin said. “I'm grateful that we have a year to take a step back and look at that, but I don't think that is going to go away."
Right now, the proposed increases of the meal and lodging taxes from 5 to 6 and 7 to 8 percent in next year’s fiscal budget are still on the table.
City Council will hold one more work session regarding this year’s budget later this month, and will approve the proposed budget in early April.