News Flash

Chesterfield On Point

Posted on: December 20, 2021

Real estate rate reduction highlights sweeping tax relief measures

Midlothian's Hallsley subdivision

Midlothian's Hallsley subdivisionMidlothian's Hallsley subdivision

A comprehensive package of local tax relief is coming to Chesterfield County residents and businesses next year.

At its Dec. 15 meeting, the Board of Supervisors approved the advertisement of Chesterfield’s maximum real estate tax rate for 2022 at 93 cents per $100 of assessed value.

Once advertised publicly, the county is prohibited from setting the rate any higher than 93 cents. That means all property owners in the county are assured of receiving at least a 2-cent reduction from the current 95-cent rate – and the board could opt to cut it further when it approves Chesterfield’s fiscal year 2023 operating budget next April. 

The rate has been at 95 cents since 2018, when the Board of Supervisors dropped it by a penny after five consecutive years of increases in countywide assessments.

The board had raised the rate from 95 cents to 96 four years earlier, following a sustained period of depressed real estate values in the wake of the recession of 2009. 

Taxes on residential and commercial real estate provide about half of the county’s annual revenue, which funds police, fire, schools, libraries, parks and a variety of other public services.

Real estate taxes are paid in two installments, the first half in early June and the remaining balance in early December.

Fueled by red-hot demand and thin inventory of residential property, average assessments already have surged past pre-recession levels in Chesterfield and are expected to increase by another 8% to 10% when 2022 valuations are finalized by the Department of Real Estate Assessments in January. 

The board decided to advertise at least a 2-cent rate reduction in December – a month earlier than usual – as a signal to property owners that it recognizes the need to mitigate the impact of rising assessments on household finances.  

Cutting the rate has been a priority of County Administrator Dr. Joe Casey, who remains focused on bringing in economic development projects to create high-quality jobs and diversify Chesterfield’s tax base.   

At 93 cents per $100 of assessed value, Chesterfield’s real estate tax rate would be the lowest it has been since at least the 1970s, when the county experienced rapid growth and began expanding its workforce to meet increased demand for public services. 

Before deciding whether to reduce the rate any further, the Board of Supervisors will participate in a robust public engagement process, including a series of community budget meetings for residents of all five magisterial districts. Residents also will be able to submit comments through an online portal prior to the board’s public hearing on Chesterfield’s fiscal year 2023 budget. 

That will allow the supervisors and county administration to weigh the community’s desire for increased investment in schools, public safety and other priorities against its interest in additional tax rate cuts.   

The board voted previously at its November meeting to provide several other forms of tax relief to Chesterfield residents.

It raised the income eligibility brackets of a real estate tax relief program for the elderly and disabled, keeping pace with a recent 6% cost-of-living adjustment for Social Security recipients. 

To participate in the program, you must be age 65 or older or totally and permanently disabled; have total household income of less than $55,200; and your assets (excluding the value of your residence) must not exceed $350,000. 

It also increased the relief threshold on Business, Professional and Occupational License (BPOL) taxes from $300,000 to $400,000, making about two-thirds of Chesterfield businesses exempt from paying the gross receipts tax.

And for the first time since 1998, it increased the personal property tax exemption threshold from $1,000 to $1,500. An additional 14,300 Chesterfield vehicles will no longer be subject to personal property taxes as a result of that action.

You can view the full budget presentation from the Dec. 15 Board of Supervisors meeting below.


Facebook Twitter Email

Other News in Chesterfield On Point

BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: November 18, 2022
2022 Community Cup

Chesterfield hosts 2022 Community Cup

Posted on: October 31, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: October 28, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: September 23, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: August 26, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: July 29, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: July 1, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: May 31, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: April 29, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: March 25, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: March 11, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: February 25, 2022
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: January 28, 2022
2021 Year in Review Graphic

2021: The Year in Review

Posted on: December 27, 2021
BOS Roundup Graphic

Board of Supervisors Roundup

Posted on: December 17, 2021
Element at Stonebridge Sign

Zoning 101: Navigating the Process

Posted on: November 8, 2021
Board of Supervisors Recap Graphic

October 27 Board of Supervisors Roundup

Posted on: November 3, 2021
Dogs going for a walk on a county trail

Woof and Wag in Chesterfield

Posted on: August 16, 2021