Board adopts FY 2025–26 budget, increases transient occupancy tax to 6%, leaves personal property rate unchanged

The Patrick County Board of Supervisors adopted the fiscal year 2025–26 budget and approved several tax and appropriation decisions: an increase in the transient occupancy tax (TOT) from 5% to 6%, a $15,000 reduction to a planned contribution to the Patrick County Education Foundation, and no change to the personal property tax rate.

During debate, staff told the board that the TOT increase would generate approximately $70,000 in additional revenue in the upcoming fiscal year and about $140,000 in a full subsequent year. A supervisor who opposed the change said he favored other revenue approaches, but a majority supported the 1‑percentage‑point increase; the motion to raise the TOT passed with three votes in favor and two opposed.

On the budget itself, staff presented a total budget figure the meeting recorded as $76,035,216. Supervisors voted to reduce the county’s planned contribution to the Patrick County Education Foundation by $15,000 and to cover an identified general fund deficit from reserve funds. During discussion staff explained that certain previously allocated ARPA reserves remain in county reserves and that the board could reallocate those funds after the budget is approved. A motion to adopt the budget, accompanied by language that the deficit would be filled from reserves, carried by majority vote.

The board also voted to leave the personal property tax rate unchanged for the coming year.

What’s next: Staff will implement the tax change effective date indicated by the county (board discussion noted a January effective date for TOT) and will post the adopted budget, including the $15,000 reduction and the reserve transfer to cover the deficit.