                                 CODE OF VIRGINIA

EFFECT ON RATE WHEN ASSESSMENT RESULTS IN TAX INCREASE; PUBLIC HEARINGS;
REFERENDUM (§ 58.1-3321)

A. When any annual assessment, biennial assessment, or general reassessment of
real property by a county, city, or town would result in an increase of one
percent or more in the total real property tax levied, such county, city, or
town shall reduce its rate of levy for the forthcoming tax year so as to cause
such rate of levy to produce no more than 101 percent of the previous
year&#8217;s real property tax levies, unless subsection B is complied with,
which rate shall be determined by multiplying the previous year&#8217;s total
real property tax levies by 101 percent and dividing the product by the
forthcoming tax year&#8217;s total real property assessed value. An additional
assessment or reassessment due to the construction of new or other improvements,
including those improvements and changes set forth in &#xA7; 58.1-3285, to the
property shall not be an annual assessment or general reassessment within the
meaning of this section, nor shall the assessed value of such improvements be
included in calculating the new tax levy for purposes of this section. Special
levies shall not be included in any calculations provided for under this
section.

B. The governing body of a county, city, or town may, after conducting a public
hearing, which shall not be held at the same time as the annual budget hearing,
increase the rate above the reduced rate required in subsection A if any such
increase is deemed to be necessary by such governing body.

C. Notice of any public hearing held pursuant to this section shall be given at
least seven days before the date of such hearing by the publication of a notice
in (i) at least one newspaper of general circulation in such county or city and
(ii) a prominent public location at which notices are regularly posted in the
building where the governing body of the county, city, or town regularly
conducts its business. Additionally, in a county, city, or town that conducts
its reassessment more than once every four years, the notice for any public
hearing held pursuant to this section shall be published on a different day and
in a different notice from any notice published for the annual budget hearing.
Any such notice shall be at least the size of one-eighth page of a standard size
or a tabloid size newspaper, and the headline in the advertisement shall be in a
type no smaller than 18-point. The notice described in clause (i) shall not be
placed in that portion, if any, of the newspaper reserved for legal notices and
classified advertisements. The notice described in clauses (i) and (ii) shall be
in the following form and contain the following information, in addition to such
other information as the local governing body may elect to include:
			NOTICE OF PROPOSED REAL PROPERTY TAX INCREASE
			The (name of the county, city or town) proposes to increase property tax
levies.

   1. Assessment Increase: Total assessed value of real property, excluding
   additional assessments due to new construction or improvements to property,
   exceeds last year&#8217;s total assessed value of real property by ____
   percent.

   2. Lowered Rate Necessary to Offset Increased Assessment: The tax rate which
   would levy the same amount of real estate tax as last year, when multiplied by
   the new total assessed value of real estate with the exclusions mentioned
   above, would be $ ___ per $100 of assessed value. This rate will be known as
   the &#8220;lowered tax rate.&#8221;

   3. Effective Rate Increase: The (name of the county, city or town) proposes to
   adopt a tax rate of $ ___ per $100 of assessed value. The difference between
   the lowered tax rate and the proposed rate would be $ ___ per $100, or ___
   percent. This difference will be known as the &#8220;effective tax rate
   increase.&#8221;
   				Individual property taxes may, however, increase at a percentage greater
   than or less than the above percentage.

   4. Proposed Total Budget Increase: Based on the proposed real property tax
   rate and changes in other revenues, the total budget of (name of the county,
   city or town) will exceed last year&#8217;s by ___ percent.
   				A public hearing on the increase will be held on (date and time) at
   (meeting place).

D. All hearings shall be open to the public. The governing body shall permit
persons desiring to be heard an opportunity to present oral testimony within
such reasonable time limits as shall be determined by the governing body.

E. The provisions of this section shall not be applicable to the assessment of
public service corporation property by the State Corporation Commission.

F. Notwithstanding other provisions of general or special law, the tax rate for
taxes due on or before June 30 of each year may be fixed on or before May 15 of
that tax year.

HISTORY: Code 1950, § 58-785.1; 1975, c. 622; 1979, c. 473; 1980, c. 396; 1981,
c. 212; 1984, c. 675; 1990, c. 579; 2007, c. 948; 2009, cc. 30, 511; 2016, cc.
657, 663; 2022, c. 29; 2023, cc. 506, 507; 2024, cc. 225, 242.