The Campbell County Board of Supervisors held a Budget Work Session on April 16. County Administrator Frank Rogers opened the meeting with a short speech about the tumult in these times and its effects on businesses and individual taxpayers. Supervisors had the opportunity to accept the proposed budget originally presented at the regular meeting on April 14 or to make budget amendments and schedule a public hearing for community feedback.
In an interview Rogers stated, “The Board expressed an interest in considering a reduction in the personal property tax rate of 2 cents. If such a reduction were made, revenue projections would drop $50,000.” To cover the $50,000 drop, Rogers explained, “I recommended and the Board concurred that we reduce our operating contingency known as budget set aside from $50,000 to $25,000 and that we take our anticipated savings from employee vacancies/turnover from ($360,000) to ($385,000). Together these measures offset the $50,000 in reduced revenue.”
The county administrator continued, “The personal property tax rate is presently $4.40/$100 of value. If the rate is reduced, it will become $4.38/$100 of value.
“However (and this is where it can get a bit tricky to convey), the amount of the actual tax paid is based upon the assessed value. The Campbell County Commissioner of the revenue uses 50% of the National Automobile Dealers Association’s clean retail value. Thus, the effective rate will become $2.19/$100 of value. So the reduction is to the rate, not to the actual amount a taxpayer will pay. So individuals will pay less in personal property tax, assuming they didn’t purchase a newer, higher value vehicle,” Rogers added.
“Each penny on the personal property tax rate is the equivalent of approximately $26,000. During their discussion, the Board suggested that the proposed budget could be reduced by $50,000 or approximately 2 cents on the rate—thus the 2 cent reduction.”
For the full story, be sure to pick up a copy of the April 22 print edition of The Union Star. It is available on newsstands throughout the greater Brookneal area. Or call (434) 376-2795 to order a subscription to be delivered directly to your home or business.