2022 Henrico County Tax Relief Credit
For Real Property Owners
The booming real estate market has impacted home prices both locally and nationwide. State law requires localities, including Henrico County, to assess real estate for taxation at 100% of fair market value, therefore real estate assessed values will increase proportionately. The state collects and publishes data annually to track how closely the County and other localities reflect market values in their real estate assessments.
Henrico is taking steps to reduce the impact of rising real estate taxable values on taxpayers by providing a one-time credit equal to two cents per $100 of taxable value and by lowering the real estate tax rate by two cents. This package of initiatives, called the “2 + 2” tax relief program, will provide the equivalent of four cents of tax relief to all taxable real property owners in the County, at a combined cost of $20 million.
The Henrico County Board of Supervisors will consider this one-time credit payment to real property owners to offset 2022 increases in taxable values at the regularly scheduled meeting on February 22, 2022. The credit would be equal to 2 cents per $100 of owners’ 2022 taxable value. Property owners with a credit $30 of or more will receive a check in March. Property owners with a credit less than $30 will receive a credit on their 2022 real estate tax bill. Checks will be issued to for owners of record for the property as of Feb. 1, 2022.
The credit is calculated by dividing the total taxable value of the property by $100, then multiplying the result by .02. For example, a $260,000 taxable value / $100 x .02 would result in a $52.00 credit.
Property owners who owe delinquent taxes to the county will see that credit applied to their outstanding balance (and then applied to their upcoming bill if the credit amount exceeds the delinquency).
Additionally, the county’s proposed budget for the 2022-2023 fiscal year is balanced on a real estate tax rate of 85 cents per $100 assessed value, a 2 cent reduction from the current rate of 87 cents per $100 assessed value. If approved, this rate will be reflected on real estate bills distributed in April and October 2022. The real estate credit is the second phase of the county’s “2 + 2” approach to mitigating the increase in real estate bills due to the current market.
The real estate credit is possible because of a surplus of real estate revenue received in excess of the amended budget in Fiscal Year 2020-2021. The County was able to provide services to citizens and meet all obligations in that fiscal year. This surplus, plus the anticipated surplus in real estate revenue for the current calendar year, are the funding sources for this tax relief credit program.
If you have additional questions, please call (804) 501-4729, option 1.
2022 RE Tax Credit Research Request
Fill out the following form in order to request a Tax Credit Research.