Portsmouth City Council votes to lower property tax rate to $1.24

The Portsmouth City Council held a public work session on May 12, 2025, focusing on the city's property tax rate and the implications of potential changes. A significant discussion centered around the current tax rate of $1.30, which has drawn criticism for being the highest in the Hampton Roads area. Council members expressed concerns about how this rate affects homebuyers' perceptions of Portsmouth and the city's overall economic growth.

Councilwoman Thomas highlighted that many residents may not fully understand the tax credit associated with their property tax bills, suggesting that reducing the tax rate could attract more potential homeowners to the city. She emphasized the need for political courage to make such changes, indicating that a lower rate could positively impact the local economy.

Councilman Dodson proposed a compromise to lower the tax rate, suggesting a reduction of three cents. He argued that demonstrating a willingness to lower the rate is essential for building trust with citizens and showing confidence in the city's future. The discussion revealed a consensus among council members that a change is necessary, with several expressing the need to reflect the actual tax rate more transparently.

Vice Mayor Moody initiated a motion to permanently adjust the tax rate to $1.24 for the current year, which was met with support from the council. The council members acknowledged the importance of this decision, not only for financial reasons but also for the message it sends about the city's direction and leadership.

The meeting concluded with a motion to enter a closed session to discuss legal matters, including recent shootings in the city, indicating ongoing concerns about public safety alongside fiscal issues. The council's discussions reflect a commitment to addressing both economic and community challenges as Portsmouth seeks to enhance its appeal and stability.