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Radford council defends personal-property tax increase after treasurer objected
Summary
Radford City Council released a joint statement explaining a recent personal-property tax rate increase and said staff consulted the commissioner of revenue and the city attorney after the city treasurer raised legal and technical objections.
Radford City Council on May 1 explained why it raised the city's personal-property tax rate and said the move followed legal review after the city treasurer objected.
"As part of the budget process, members of city council determined it was necessary to increase the personal property tax rate from $2.44 to $2.55 per $100 of assessed value," Mayor Horton said, reading a statement the council said represented all members.
The council said the treasurer had objected to the increase at earlier meetings, first raising concerns that the change would create additional workload and later asserting the increase was illegal. Council members said they consulted the commissioner of revenue and the city attorney, who "confirmed there was no legal barrier to this increase," and that staff tested the treasurer's technology concerns and found city systems could accommodate the new rate.
Why it matters: The council said the revenue from the rate change was needed to continue city priorities amid a difficult budget environment. Council also approved an ordinance clarifying effective dates for a set of tax rates at the same meeting.
Council members acknowledged the treasurer's objections had been discussed at earlier department-head briefings and that questions were answered before the April 21 meeting. The statement said the treasurer 'interrupted a motion on the floor' during the April 21 tax adoption; because the treasurer's comments were out of order and had already been addressed, the mayor did not recognize her at that time.
City staff and at least one council member urged residents with questions to contact city staff or council members directly.
Clarifying details recorded at the meeting include: - The stated change in the personal-property tax rate: from $2.44 to $2.55 per $100 of assessed value. - Staff told the council the tax rates for real estate, personal property, machinery and tools are set annually and were to be effective Jan. 1, 2025; meals and hotel-occupancy tax changes would take effect July 1, 2025. - The council said it consulted the office of the commissioner of revenue and the city attorney about legal authority for the rate change.
No formal action to reverse the rate increase was proposed during the meeting; council voted to approve an ordinance clarifying effective dates for tax rates (see separate actions).
