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City residential property values rise by 11.69%, commercial properties by 2.79%

Charlottesville home owners could see their property taxes increase between 10 to 12 percent this year, based on new assessments for 2022 released Thursday by the City Assessor’s Office.

Home assessments in Charlottesville increased by an average 11.69 percent for the 2022 year, the Charlottesville City Assessor’s Office said Thursday in its 2022 property reassessment. That average is based on valuations of 15,164 taxable residential properties.

“The major takeaway from this reassessment was the overall strength of the residential market. It’s reminiscent of the 2005-2006 market,” said City Assessor Jeff Davis. “A combination of low inventory, high demand and historically low interest rates created a market where numerous properties sold above asking prices which included bidding. Many properties sold in less than five days on the market.”

Almost all, or 95.85%, of residential assessments increased in value, with 1.37% decreasing and 2.77% not changing.

Commercial properties, including apartments, retail, office, industrial, vacant land, increased by an average of 2.79%. When new construction and reclassifications are added to the value of the existing property, the total value of property in the city increased by 10.77%.

Of commercial assessments, 72.05% increased in value, 7.07% decreased, and 20.88% did not change. Combined existing residential and commercial property increased in value by 7.94%. New construction value included for 2022 is 2.86%.

Davis said that with the exception of apartments, the commercial market hasn’t fully recovered from the effects of the COVID-19 pandemic.

The assessor’s office assesses property values each year to determine a fair market price, to which the tax rate is applied.

The city is divided into 55 residential and 21 commercial neighborhoods. Sales within those neighborhoods are compared to existing assessments to determine the amount of change necessary to reflect the current market, Davis said.

While individual taxes will vary, the average residential owner could see between a 10 and 12% increase, if the tax rate remains the same, Davis said. The city’s real estate tax rate is 95 cents per $100 of assessed value, which is below the state average of $1.04.

But that could change, too. The city is discussing the possibility of a 10-cent real estate tax rate increase to help fund the city schools reconfiguration project.

The City Council will use the reassessment when determining a tax rate as it sets about to fund city projects, programs and services in the fiscal year 2023 budget.

The reassessment notices will be mailed Friday. The City Assessor’s Office can be contacted at 434-970-3136, Monday through Friday, 8 a.m. to 5 p.m. The office remains closed to the public due to COVID-19.

Source: www.dailyprogress.com

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