VIRGINIA BEACH, Va. - The assessed value of homes in Virginia Beach rose by more than 9 percent in a year, the city's real estate assessor is projecting.
Ron Agnor told Virginia Beach City Council members about the increase during a presentation Tuesday. He says the hot real estate market has led to the spike, with homes selling quickly at or above asking prices.
For example, Agnor said the average price of a new home jumped from $387,700 in 2020 to $545,900 in 2021.
The increase means residents could pay more in taxes in the next fiscal year if the city council doesn't lower the tax rate, but there is still plenty of time for the council to take action to adjust the tax rate.
The first bills under this updated assessed value rate aren't due until December.
In addition to the value of homes increasing, the value of cars has also shot up. Commissioner of Revenue Phil Kellam told News 3 last week car values are up 40 percent, meaning this spring's personal property tax bills could be up significantly.
"Most people expect their vehicles will be depreciating assets, but this year we had a startling revelation," Kellam told News 3 last week.
City Councilman John Moss said he wants the city council to take action by mid-March to lower the tax burden people could face if nothing is done.
"It needs to be significantly reduced," Moss said of the personal property tax rate. "Government shouldn't benefit from that kind of inflation."
Hampton is also seeing a similar increase, the Commissioner of the Revenue told his city council on Wednesday. Car values are up 45-percent in that city.
Now, local governments are weighing their options to help address the increases. "Clearly, there's room to give tax relief," said Moss.