To keep real estate tax revenues at last year’s level, Chesterfield County’s Board of Supervisors will have to increase the tax rate by at least 5 cents this year, according to information from the county.
The assessed value of all real estate in Chesterfield County dropped 3.9 percent during 2009, according to the county’s Department of Real Estate Assessments. The declined value of all property in the county represents the net effect of: a 4.8 percent, or $1.3 billion, reduction in the overall value of existing residential properties; a 6.4 percent, or $418 million, drop in the overall value of existing commercial properties; and a 1.2 percent, or $400 million, increase from new construction added throughout the year.
Despite significant fluctuations in assessed values among residential neighborhoods, approximately 93 percent of county homes experienced reductions in value. Only 3 percent of homes increased in value, and 4 percent remained unchanged.
According to the county’s fiscal 2009-fiscal 2010 Biennial Financial Plan with fiscal 2010 amendments, total real estate tax revenues were budgeted at $312.4 million in fiscal 2010, which ends June 30. “Residential assessments for the 2009 Land Book, which … sets property values for calendar year 2009 tax billings, declined 1.5 percent,” it says.
“The real estate revenue projections assume a 4.75 percent decrease in residential assessments in calen