Chesapeake homeowners: Your real estate tax bill could increase under the proposed rate

CHESAPEAKE — Homeowners may see higher real estate tax bills this year as overall assessments grew by a little more than 4% citywide since last year.

City Council is responsible for setting tax rates. With the increased assessments, a 4-cent reduction would be needed to offset. For years, Chesapeake levied a real estate tax rate of $1.05 per $100 of assessed value until the last two fiscal budgets, which reduced the rate to $1.01. The proposed fiscal 2025 budget keeps that same rate, meaning most homeowners could expect to pay more because of the increased assessments, which vary by neighborhood.

Council members are expected to receive additional information in future meetings about tax relief options before adopting the budget in May. The budget spans from July 1 to June 30, 2025.

About $390.5 million in real estate tax revenue is expected for fiscal 2025, an increase of nearly $14.6 million compared with the fiscal 2024 budget. Of that, about $358 million will be dedicated to the general fund.

Assessments for 2024, which don’t include additional assessments due to new construction or improvements to property, amount to a total value of $39.5 billion, which is an increase of more than $1.5 billion from last year’s land book value.

One cent of the city’s real estate tax rate is dedicated to mosquito control. And in the proposed fiscal budget, a half-cent of the tax rate would be diverted to the city’s lockbox that will help fund debt service on the new public safety training academy project. The half-cent dedication is expected to generate nearly $1.8 million, with all allocations to the city lockbox totaling $29 million in fiscal 2025.

Chesapeake’s proposed budget includes money for public safety training academy, pay increases

Several Chesapeake residents opposed any effective tax rate increase during a public hearing held Tuesday at the City Council meeting. Cheryl Berry, who lives in the Georgetown neighborhood of the city, said her assessment has increased by 38% over the last several years.

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“I haven’t seen 38% of improvements (in the neighborhood),” Berry said. “Even if you’re going to increase, the services should match that.”

Berry, a financial adviser, said council members should take a closer look at the budget and eliminate waste. One example she cited included multiple officers and court reporters on standby at the courts who draw overtime and could instead attend the meetings virtually. Berry also said with inflation, even city employees who will receive a general wage increase will still lose money with the increased tax bills.

Another resident said her son was accepted into a science and medicine academy but can’t attend due to increased tax bills that may threaten her family’s ability to stay in Chesapeake.

Natalie Anderson, 757-732-1133, natalie.anderson@virginiamedia.com