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The Suffolk City Council will hold a public hearing on Wednesday, May 7, at 6 p.m. to gather public input on an effective real estate tax increase driven by rising property values. The hearing will take place in Council Chambers at City Hall, 442 W. Washington Street.

While the city’s real estate tax rate is not increasing, higher assessed values following the latest reassessment have triggered what Virginia law defines as an “effective tax rate increase.” Under state code, municipalities must hold a public hearing when reassessment-driven increases exceed 1%, even if the actual tax rate remains the same.

City Finance Director Charles Meek confirmed during the April 16 work session that the city’s proposed budget maintains the existing real estate tax rate structure.

“The proposed budget does not adjust the citywide real estate tax,” Meek said. “[It] remains at $1.07 per $100 of assessed value, 10.5 cents in the downtown business district, [and] 24 cents in the Route 17 taxing district. This would keep Suffolk at its current rating as the third-lowest real estate tax rate in the region.”

He also noted that Suffolk has reduced its real estate tax rate by a total of four cents over the past three fiscal years.

Despite the steady rate, reassessments across the city show an average increase in property values of 4.71%. This means the amount of tax paid by most property owners will go up without any change to the rate.

If the city adopted a “revenue-neutral” rate that brings in the same total property tax revenue as last year, it would need to lower the rate to $1.032 per $100 of assessed value. However, since the city plans to maintain the $1.07 rate, the result is what state law recognizes as a 3.54% effective tax rate increase.

The increased revenue generated from rising assessments is expected to support the city’s proposed operating and capital budgets for fiscal year 2025-2026. According to City Manager Al Moor, Suffolk’s total proposed budget would increase by 8% over the prior year, partly driven by this additional revenue.

The city plans to use the funds to sustain essential services, invest in infrastructure, and meet growing community needs amid population and development growth.

The public hearing is open to all Suffolk residents. Property owners are encouraged to attend and voice their thoughts on the proposed revenue plan and how it may affect their tax bills. Since the reassessment impact varies by property, some owners may see increases higher or lower than the 3.54% average.

Citizens needing accommodations or accessibility assistance should contact the City Manager’s Office at 757-514-4012.

Council is expected to vote later in the meeting to adopt the city’s full FY 2025–26 budget, including the real estate tax rate ordinance.