HomeMy WebLinkAboutFY 2026-27 Resource Management Plan (Budget)City of Virginia Beach
Tax Relief Programs
Kevin Chatellier, Director of Budget and Management Services
May 5, 2026
1
Regional Comparison of Tax Rates
2
Tax/Fee Virginia
Beach Chesapeake Norfolk Portsmouth Suffolk Hampton Newport
News
Real Estate $0.97 $1.01 $1.23 $1.24 $1.06 $1.14 $1.18
Personal Property
(Vehicles & Business)$4.00 $4.08 $4.33 $5.00 $4.25 $4.50 $4.50
Personal Property
(Machines & Tools)-$0.64 $1.70 $1.50 $0.63 $1.23 $1.25
Personal Property
(Boats)$0 $0.09 $0 $0.50 $1.50 $0 $0
Automobile License
Registration $30.00 $26.00 $31.00 $32.00 $26.00 $35.00 $26.00
Cigarette $0.75 $0.65 $0.95 $0.95 $0.75 $0.85 $0.85
Solid Waste Fee $30.55 -$33.51 $29.16 $30.00 $39.17 $31.63
Meals 6.0%6.0%6.5%7.5%6.5%7.5%7.5%
Admissions 10.0%10.0%10.0%10.0%10.0%10.0%10.0%
Hotel 8.0%8.0%8.0%8.0%8.0%8.0%8.0%
Hotel Flat Tax $2.00 $2.00 $3.00 $3.00 $2.00 $2.00 $1.00
Real Estate
3
Elderly/Disabled Tax Relief
4
•Must be age 65+ or totally and permanently disabled to qualify
•Only valid for primary residence
•Amount of relief offered depends on combined income of residents
•First $10,000 of income is not counted for non-spouse relatives and
disabled residents
•Net worth of property owners (excluding value of the home and up to
10 acres of land) cannot exceed $350,000
•Income thresholds updated annually based on increase in property
values
•20-100% Real Estate Tax exemption
Elderly/Disabled Tax Relief Income Thresholds
FY 2026-27
5
Total Income Exemption
0.00 - 66,714.00 100%
66,714.01 - 71,892.00 80%
71,892.01 - 77,065.00 60%
77,065.01 - 82,243.00 40%
82,243,01 - 87,419.00 20%
Tax Freeze
6
•Holds a recipient’s property tax bill constant, even if valuation
increases
•Must be age 65+ or totally and permanently disabled to qualify
•Only valid for primary residence
•Combined income of residents cannot exceed $114,062
•First $10,000 of income is not counted for non-spouse relatives and
disabled residents
•Net worth of property owners (excluding value of the home and up to
10 acres of land) cannot exceed $350,000
•Income limit updated annually based on increase in property values
Veterans Tax Relief — Mandated
7
•100% Real Estate Tax exemption
•Recipient must be ruled by the VA to have a 100% service-
connected, total, and permanent disability or a surviving spouse
•Exemption only valid for primary residence
•No cap on income or property value
•Unfunded constitutional mandate from the State
Personal Property
8
Vehicle Local Tax Relief Credit
9
•Proposed as part of the FY 2026-27 Proposed Budget
•10.1% Property Tax credit
•Applied to tax bill for the first $20,000 of vehicle’s assessed
value
•Capped at $80 per vehicle
•No limit on number of vehicles owned by an individual
•Personal Property calendar year tax
• Effective starting January 2027
Personal Property
Disabled Veteran — Local Option
10
•Personal Property tax rate of $1.50 per $100 assessed value
•Eligible for separate tax rate State Code §58.1-3506 Sec. 19:
•One motor vehicle owned and regularly used by a veteran who has either lost,
or lost the use of, one or both legs, or an arm or a hand, or who is blind or who
is permanently and totally disabled as certified by the Department of Veterans
Services.
Personal Property
Disabled Veteran — Mandated
11
•100% Personal Property Vehicle Tax exemption via Virginia
Constitution Art. X Sec. 6 (a) 8.
•Recipient must be ruled by the VA to have a 100% service -connected,
total, and permanent disability or a vehicle owned by a veteran's
spouse
•Exemption for one vehicle used primarily by or for veteran
•No cap on income or vehicle value
•Unfunded constitutional mandate from the State
Projected Exemption/Relief in FY 2026-27
12
Program Projected Cost
Elderly/Disabled Exemption $16,632,191
Tax Freeze $133,946
Veterans Tax Relief (mandated)$46,001,260
PP Local Tax Credit $12,800,000
PP Veteran Local ($1.50)$1,565,780 (FY 25)
PP Veterans Relief (mandated)(obtaining est.)
Total $77,133,177
Questions & Discussion
13