(The Center Square) – Louisa County supervisors approved a 15% reduction in the personal property tax rate while keeping the real estate tax rate unchanged, as property values continue to rise.
The board voted unanimously last week to lower the personal property tax rate from $2.43 to $2.07 per $100 of assessed value for the upcoming fiscal year. The real estate tax rate will remain at 72 cents per $100 as part of a roughly $201 million budget, including about $186.4 million for operations and $14.6 million for capital projects.
County leaders said the tax cut is tied to ongoing economic development efforts, including multiple data center projects expected to generate new revenue over time.
“We’ve been attracting data centers intentionally,” Jackson District Supervisor Toni Williams said during the meeting. “The citizens should see something for that. This is just the beginning of what I hope we’re going to be able to share and do for the citizens.”
Officials said those projects are still under construction and are not yet fully contributing to the county’s tax base.
For many homeowners, however, rising property values may offset the impact of the tax cut. According to county budget materials, real estate assessments increased by an average of about 6.88% this year.
Based on the increase in assessed value and the current tax rate, a home valued at $400,000 would see an increase of roughly $180 to $200 in real estate taxes compared to last year.
Because the real estate tax rate was not reduced, many residents are expected to see higher tax bills despite the personal property tax cut.
Supervisors said they do not plan to lower the real estate tax rate, instead pointing to rebates as a way to provide relief to residents while maintaining full tax contributions from commercial development.
“I will never support a real estate tax reduction because we cannot separate residents from commercial. We can rebate residents while the commercial development continues to pay the full rate,” Board Chairman Duane Adams said.
Some residents have questioned whether the tax cut will provide meaningful relief as assessments continue to climb.
County leaders said additional tax relief could depend on how much revenue is generated as those projects move forward.
