Henrico leaders approve emergency ordinance on tax bills, seek feedback in June | Richmond Latest News

Henrico County’s Board of Supervisors approved an emergency ordinance that extends the due date for personal property taxes and vehicle license fees through August, while also setting a public hearing on the matter for June 14.

The board approved the measure 4-0 on Tuesday as part of an emergency ordinance aimed at giving relief to taxpayers. Three Chopt representative Tommy Branin was not present.

Henrico bills its citizens twice annually for personal property taxes, with bills due each June and December. This year, those dates are June 6 and Dec. 5.

After the public hearing on June 14, the board is scheduled to vote to ratify the ordinance, which would allow residents to pay their personal property taxes and vehicle license taxes through Aug. 5 without penalties and interest. The measure pertains only to personal property taxes. Real estate taxes are still due June 6.

Tuesday night’s action follows initiatives announced Friday by county leaders. The continued spike in used vehicle values ​​means record-high personal property tax bills. Personal property taxes are generated from the Jan. 1 values ​​for used cars, trucks and motorcycles, as required by state law.

The county’s anticipated windfall from those higher taxes is roughly $20.4 million — that’s above the already higher amount they budgeted for FY 2022-23, county officials said last week. In addition to the payment extension, they are also seeking to offer credits on the second bills due in December, equal to 52 cents.

Henrico’s personal property tax rate is $3.50 per $100 of assessed value, so the one-time reduction would effectively drop the rate to $2.98.

That measure will be introduced at the board’s June 28 meeting. A public hearing and board vote will follow on July 26. If approved, the credits would be applied in October, when the bills are finalized and sent to residents. Those who have already paid their bills in full will receive a refund in October.

Henrico Finance Director Sheila Minor told board members during Tuesday ‘s work session that between December 2020 and December 2021, the year-over-year increase in used vehicle values ​​spiked 40.8%, “which is unprecedented,” she said.

Minor also said that if approved, the December bills will show the credit as added to the tax amount already paid in the first bill, rather than identified as an itemized deduction.

To that, Varina representative Tyrone Nelson and Board Chair Patricia O’Bannon encouraged Minor to work with staff to figure out a way to make the bills, and especially the credits, easy to understand.

Nelson said it shouldn’t be up to the customer to do the math to determine their savings. Bannon competed.

“I like the idea … of a line item,” she said, one that clearly shows how much the county will offer as a credit.

Simply put, “more of an explanation,” she said.