After Thursday, Martinsville residents could get a better understanding of what to expect when it comes to the city’s property tax rate in the upcoming fiscal year.
The Martinsville City Council will hold a regular session at 7 p.m. in council chambers to discuss the budget and real estate tax rates.
This budget season, the tax rate has been one of the primary points of concern for city officials and residents alike. This is largely due to tax-related changes brought on by the recent reassessment.
Held in March, the reassessment impacted the values of properties throughout the city. The city saw a median property value increase of 54.3% and a total value increase of 37.65%.
Many feared that the increase in property values would translate to larger tax bills, prompting the city to hold a period in which property owners could appeal their individual reassessments.
Prior to the appeal period, the assessed value was $1.09 billion. After the appeals, that number was reduced to $1.03 billion.
Officials are considering offsetting the reassessment with a new tax rate, one that allows for growth while not being a financial burden on residents.
The current tax rate is 99 cents per $100 valuation. This means a property valued at $100,000 would have a tax bill of $990. Officials can keep this rate, although they have indicated they want a lower one.
City councilors have the option of pursuing a revenue neutral tax rate, or one that does not add revenue. This tax rate is projected as 75 cents.
Staff is currently suggesting a tax rate of 82 cents per $100 valuation. A property valued at $100,000, under a tax rate of 82 cents, would have a tax bill of $820.
Officials have said that a reduced rate won’t necessarily translate to lower tax bills for all residents — a tax bill could increase depending on how much a specific property value rose.
At a recent community meeting, city staff described a scenario in which a $100,000 property increased to $140,000 following the reassessment. Prior to the reassessment, and under the 99-cent tax rate, the owner would have paid a tax bill of $990.
Even if the council reduced the tax rate to 82 cents, with a reassessed value of $140,000 the property owner would still have to pay a higher tax bill of $1,148.
The 2025-2026 fiscal year begins July 1. The city’s budget process is split into five phases: pre-planning, planning, proposal, adoption and execution.
The city is currently in the adoption phase and is expected to adopt a budget sometime in May or June.
