Wise County residents angry at possible tax hikes amid budget crisis; supervisors meet Tuesday 

Wise County is about $4.7 million short of the money to fund its budget through the fiscal year’s end on June 30.

Meanwhile, property owners are enraged to find that their real estate tax bills might rise dramatically after a recent property reassessment.

But the county is almost certain to let tax bills go up as part of a strategy to plug the budget gap.

During a Feb. 12 public hearing in front of a packed audience, 45 people spoke against effective tax increases through reassessment, criticized the reassessment process and warned supervisors that they are in danger of being voted out if they don’t focus harder on cutting costs.

The county’s current real estate tax rate is 69 cents per $100 of value. But the reassessment that went into effect Jan. 1 raises property values to the point that supervisors would have to lower the rate to 55 cents for tax bills to stay roughly the same.

The average countywide value increase for residential properties is 35%. This is the most recent assessment since 2022.

Supervisors anticipate maintaining a tax rate between 63 cents and 69 cents because the extra money is needed to help close the budget gap.

The county’s real estate tax rate is tied for the third-highest in the coalfield region. Rates range from a low of 39 cents in Buchanan County to a high of 90 cents in Norton.

The board of supervisors will meet again at 6 p.m. Tuesday to vote on setting the tax rate. It will take place at the county schools Education Center, 628 Lake St., Wise.

According to Karen Mullins, the county attorney and interim county administrator, keeping the real estate rate at 69 cents and raising other tax rates, including personal property, by 14 cents would still leave the county about $4.7 million short. One way or another, supervisors know they must find ways to cut spending — possibly to the point of eliminating some jobs.

Under the leadership of former County Administrator Mike Hatfield, the $83.3 million fiscal 2025-26 budget was balanced by plugging in $7 million from a seven-year-old fund designated in part to pay down construction debt from recent high school consolidations. The current budget is about $788,000 less than the 2024-25 budget.

In previous years, critics said during recent meetings, the county depended too heavily on short-lived federal American Rescue Plan Act dollars and on spending down its unbudgeted fund reserves to balance budgets.

In mid-December, Hatfield said the county spent ARPA dollars to balance the budget in fiscal 2021-22, 2022-23 and 2023-24. In fiscal 2024-25, that money was gone, so the county pulled $4 million from its combined school debt/economic development fund to make ends meet.

Hatfield, an engineer by training, stepped down in late December after seven years as administrator. At the time, he said the timing of his departure was related to selling his Wise County home and moving to neighboring Dickenson County and was unrelated to the budget struggles. He had already been planning to retire soon, he said.

Hatfield did not respond to a request for comments for this article. 

The county’s severance agreement requires it to keep paying Hatfield’s salary and benefits through June. Hatfield’s salary was just short of $195,000.

Also in December, supervisors agreed to pay a $500 end-of-year bonus to each county employee, noting that it was part of the approved budget.

Reassessment drew criticism from residents

Several speakers at the Feb. 12 public hearing claimed that no one visited their properties during the reassessment process. Many said they live on fixed incomes and cannot pay higher tax bills. They urged supervisors to make massive spending cuts instead, along with working harder to bring in new businesses and jobs.

Among the speakers was David Cox, an accountant and a former county finance director. He noted that he had warned supervisors for years that income from coal severance taxes was shrinking and that the county must cut spending.

Coal companies pay a severance tax to the county where coal is mined. The tax is 1% of the gross receipts from coal sales, or 0.75% for small mines. 

Cox said the real estate tax rate will have to be set to generate more income through reassessed rates, but 69 cents is too high. 

Several speakers noted that as much as 80% of county land is owned by absentee corporations involved in coal mining or gas extraction, the U.S. Forest Service or the Nature Conservancy — land on which little to no property tax is paid. Supervisors are asking other residents to make up the difference, they said. 

According to information on Commissioner of Revenue Doug Mullins’ website, the most recent assessment was conducted by three in-house assessors “who have almost 65 years of combined experience assessing property in Wise County.” The chief assessor is certified by the state taxation department, and all three hold “master” designations through the Weldon Cooper Center for Public Service at the University of Virginia.

The commissioner’s website also explains the process to appeal a new assessed value.

The site notes that people who are permanently and totally disabled, or older than 65, may qualify for a partial tax reduction. That includes veterans with a 100% service-connected disability or the veteran’s surviving spouse. Household income cannot exceed $42,000, and total assets, not including the home, cannot exceed $85,000. 

An ongoing budget shortfall

In mid-November 2025, county Treasurer Delores Smith told supervisors that the county was about $6 million short on cash relative to budgeted spending for the rest of the fiscal year. 

In early December, Smith gave a revised estimate that the county was at least $5 million short. She said only about $4.6 million remained in the general fund balance. If spending remained at the current pace, she warned, the county would run out of money before the spring tax billing. “I’ve never seen it like this in 18 years,” she said.

The county overbudgeted by $7 million, Smith said at the time.

At a Jan. 28 meeting, Smith said that in May 2025, she had urged supervisors not to approve the proposed budget, but her concerns have not been heeded. For seven years, she said, “I have been cut out completely, to be honest.”

Smith said whenever she ran into a supervisor, she would urge them to come discuss the county’s financial problems. Of the eight-member board, supervisors Randy Carter and Rusty Peters had done so, she said. 

Smith said the county doesn’t have enough money to meet its budget through the end of June. The school system has agreed to delay spending more than $10 million until June, giving Smith time until spring tax collections are done and she has a better income-to-spending picture, she noted. 

David Rose of the financial management firm Davenport & Co. said at the Jan. 28 meeting that Hatfield’s budget and income estimates were incorrect, with local revenue overestimated by about $3.5 million. 

Supervisor Steve Bates said the county should have raised property taxes by 1 cent each of the last six years instead of leaving the rate the same. 

Mullins said keeping the 69-cent rate and raising the personal property rate would gain about $5.5 million, but spending cuts would still be needed. That could mean cutting jobs, she said. 

Board Chair J.H. Rivers favored putting the real estate rate at 63 cents and raising other taxes by 8 cents, but he estimated that the county would still be short by about $4.8 million.

Mullins noted that the commissioner and treasurer need firm tax rates by March 5 to begin the billing process. 

Supervisor Fred Luntsford said that the board could advertise a 69-cent rate for a public hearing, but always had the ability to impose a lower rate. 

During a Feb. 3 meeting, county staff presented updated income and spending numbers. Mullins said even if the real estate rate stays at 69 cents, the county must look for a way to cut spending. 

The board voted 5-3 to advertise the 69-cent rate along with other increased rates.