Powhatan Considers Real Estate Tax Increase to Offset Budget Shortfall

According to Powhatan Today, Powhatan's budget woes, like many localities, have been compounded by a sharp decrease in assessed property values, Powhatan County leaders are faced with raising the county’s tax rate or drastically cutting services in order to get by.

The county is projecting a budget shortfall of $8.1 million in the next fiscal year, with its school system to feel the brunt of the pain with a $5.5 million funding gap, mostly because of proposed state cuts. Localities will not be certain of the actual state revenune they will receive until the session adjourns in March. Powhatan, which assesses its real estate every two years, saw a nearly 12 percent decline in property assessments for 2010. At the current real estate tax rate of 71 cents per $100 of assessed value, that’s a $3.1 million revenue loss.
To offset that, county supervisors will consider raising the tax rate at least 9 cents, to a revenue-neutral 80 cents.

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