CITY OF CHARLOTTESVILLE, VIRGINIA
                CITY COUNCIL AGENDA




Agenda Date:           April 5, 2021

Action Required:       Approval of Tax Rate/Tax Levy Ordinance

Staff Contacts:        Chip Boyles, City Manager

Presented By:          Chip Boyles, City Manager
                       Ryan Davidson, Sr. Budget and Management Analyst
                       Khristina Hammill, Sr. Budget and Management Analyst

Title:                 Tax Rate/Tax Levy Ordinance for Calendar Year 2021



Background: As part of the budget process for each fiscal year, Council reviews its tax
rates and levies for the calendar year (also known as the “Tax Year”). This will be the first
reading of the Tax Rate/ Tax Levy Ordinance to establish the City’s local tax rates for the
2021 Tax Year.

Discussion: The budget for the 2021-22 fiscal year does not change any tax rates or levies.
Adopting the ordinance will provide a formal recognition of Council of the rates as set forth
in the Ordinance. These rates will become effective at midnight on January 1, 2021 and
continue through December 31, 2021. The second reading and final approval of this
Ordinance will be on April 13, 2021.

Community Engagement: Tonight’s meeting includes a public hearing on the Proposed
Budget for the Fiscal Year July 1, 2021 – June 30, 2022, continuing a series of public
engagement opportunities around the proposed budget for the upcoming fiscal year.

Alignment with City Council’s Vision and Strategic Plan:
This Ordinance aligns with Council’s Vision and Strategic Plan as set forth in the Proposed
Budget.

Budgetary Impact: This is the first of two readings of the attached Ordinance, the purpose
of which is to set the local tax rates for Tax Year 2021.

Recommendation: Approval of Ordinance (1st reading)

Alternatives: N/A

Attachment (1):
     1. Tax Levy Ordinance
                             AN ORDINANCE
                   TO ESTABLISH THE ANNUAL TAX LEVY
                ON VARIOUS CLASSES OF PROPERTY FOR THE
         PAYMENT OF INTEREST AND RETIREMENT OF THE CITY DEBT,
             FOR THE SUPPORT OF THE CITY GOVERNMENT AND
             CITY SCHOOLS, AND FOR OTHER PUBLIC PURPOSES.

   BE IT ORDAINED by the Council of the City of Charlottesville that for the tax year
beginning on January 1, 2021 and ending December 31, 2021, and for each tax year thereafter
during which this ordinance continues in effect, the taxes on property in the City of
Charlottesville shall be as follows:

   Section 1. Real Property and Mobile Homes

   On tracts of land, lots or improvements thereon and on mobile homes the tax shall be $.95 on
every $100 of the assessed value thereof, to pay the general operating expenses of the City and to
pay the interest and retirement on the City debt.

   Section 2. Personal Property

    On all automobiles, trucks, motorcycles and other motor vehicles; boats and aircraft; and on
all tangible personal property used or held in connection with any mining, manufacturing or
other business, trade, occupation or profession, excluding furnishings, furniture and appliances in
rental units, the tax shall be $4.20 on every $100 of the assessed value thereof, to pay the general
operating expenses of the City and to pay the interest and retirement on the City debt.

   Section 3. Public Service Corporation Property

   (a) On that portion of the real estate and tangible personal property of public service
corporations which has been equalized as provided in section 58.1-2604 of the Code of Virginia,
as amended, the tax shall be $.95 on every $100 of the assessed value thereof determined by the
State Corporation Commission.

   (b) The foregoing subsections to the contrary notwithstanding, on automobiles and trucks
belonging to such public service corporations the tax shall be $4.20 on every $100 of assessed
value thereof.

   (c) Such taxes are levied to pay the general operating expenses of the City and to pay the
interest and retirement on the City debt.

   Section 4. Machinery and Tools

   On machinery and tools used in a manufacturing or mining business the tax shall be $4.20 on
every $100 assessed value thereof, to pay the general operating expenses of the City and to pay
the interest and retirement on the City debt.
  Section 5. Energy Efficient Buildings

   (a) On energy efficient buildings the tax shall be $.475 on every $100 of the assessed value
       thereof, to pay the general operating expenses of the City and to pay the interest and
       retirement on the City debt.

   (b) This tax rate is subject to the limitations in Chapter 30, Article V, Division 4 of the
       Charlottesville City Code, 1990, as amended, and applies only to buildings and not the
       real estate or land on which they are located.


   BE IT FURTHER ORDAINED that the ordinance adopted April 8, 2019 establishing local
tax rates for the year beginning January 1, 2019 and ending on December 31, 2019 is hereby
repealed, effective at midnight on January 1, 2021.



                                                                          Approved by Council:

                                                                         ___________________