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To amend City Code § 26-355, concerning the levy of tax on real estate, to establish a tax rate of $1.16 for the tax year beginning Jan. 1, 2026, pursuant to Va. Code § 58.1-3321(b), and increasing such rate from the Rolled Back Tax Rate of $1.146 as computed in accordance with Va. Code § 58.1-3321(a).
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That Section 26-355 of the Code of the City of Richmond (2020) be and hereby is amended as follows:
Sec. 26-355. Levy.
There shall be levied and collected for each year on all real estate located in the City not exempt from taxation a tax of [$1.20] $1.16 for the tax year beginning January 1, [2025]2026, and for each year thereafter, until otherwise provided by law or ordinance, for each $100.00 of assessed evaluation thereof for general purposes.
§ 2. That the aforesaid tax rate of $1.16 is established pursuant to section 58.1-3321(b) of the Code of Virginia (1950), as amended, and represents an increase of $0.014 from the Rolled Back Tax Rate of $1.146 computed in accordance with section 58.1-3321(a) of the Code of Virginia (1950), as amended.
§ 3. That the aforesaid tax rate of $1.16 shall be applied in lieu of the Rolled Back Tax Rate of $1.146.
§ 4. This ordinance shall be in force and effect as of January 1, 2026.
DATE: August 15, 2025
TO: The Honorable Members of City Council
THROUGH: Reva M. Trammell, 8th District Councilmember
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Will Perkins, Senior Legislative Services Manager
FROM: Steven Taylor, Council Policy Analyst
RE: Establishing a real estate tax rate of $1.16 per $100 of Assessed Real Estate Value.
CNL - 2025 - 0038
PURPOSE:
To amend and reordain City Code § 26-355, concerning the levy of tax on real estate, to establish a tax rate of $1.16 for the tax year beginning Jan. 1, 2026, pursuant to Va. Code § 58.1-3321(b), and increasing such rate from the Rolled Back Tax Rate of $1.146 as computed in accordance with Va. Code § 58.1-3321(a).
BACKGROUND:
Since 2009 the City’s real estate tax rate has been set at a rate of $1.20 per $100 of assessed value. During that time the assessed value of the real estate taxpayers’ land has increased dramatically thereby causing increases in tax bills from the City government to taxpayers the patron hopes to alleviate the tax burden by set a lower rate of taxation as allowed under the Virginia Code. Last year, the City Assessor advised the Council that the growth in land book value for Tax Year 2026, over the Tax Year 2025 land book, was 5.74% which meant that assessed value would continue to increase and therefore so would future tax bills to real property owners. While the Council approved a four-cent rebate for tax year 2025 its relief is only for one year. Despite the four-cent rebate offered real estate owner that if the real estate taxpayer’s tax bill will increase again if the current $1.20 real estate tax rate is continued.
FISCAL IMPACT: None.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: September 8, 2025
CITY COUNCIL PUBLIC HEARING DATE: September 18, 2025
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance & Economic Development
AFFECTED AGENCIES: Budget Office, Finance Dept, and Assessor’s Office
RELATIONSHIP TO EXISTING ORD. OR RES.: None
ATTACHMENTS: N/A
STAFF: Steven Taylor, Council Policy Analyst, (804-646-2780)