Portsmouth assessor reports $378.6 million rise in land book; residential median up 3.3% in FY26 reassessment

City Assessor Steve Edwards told the Portsmouth City Council that the city's proposed land book for the upcoming fiscal year is nearly $10.9 billion, an increase of about $378,600,000 from last year, driven by market activity across neighborhoods and property classes. Notices are planned for mailing on or about March 7, informal hearings will be held March 17–31, board of equalization applications will be accepted through April 25, and the new land book is scheduled to take effect July 1, 2025.

Edwards said the office used 2024 calendar-year market data for the mass appraisal and cited the assessor's statutory authority under Title 58.1 of the Code of Virginia and the state's established fair-market-value standard from Tuckahoe Woman's Club v. City of Richmond (1958). “State code also requires assessors to strive for 100% of fair market value,” Edwards said, describing the office’s mission and mass-appraisal approach. He characterized the office’s workflow as “reactive, not proactive” because assessments are based on prior-year data.

The reassessment metrics Edwards presented included a median residential increase of 3.3% and a median commercial increase of 4.31%. The assessed land book rose from about $10.5 billion to nearly $10.9 billion. Edwards said residential accounts make up about 93.1% of parcels (32,559 residential properties) but roughly 72% of total assessed value, while commercial accounts represent about 6.9% of parcels (2,403 commercial properties) and about 28% of value. The median sales price in Portsmouth is $274,950, up about 3.8% from the prior year, and days on market are down to roughly 20 days, signaling a seller's market.

Edwards provided neighborhood-level detail showing some areas with double-digit increases (one neighborhood with a 17% increase before adjustments) and a wide dispersion of change: 21,975 properties increased up to 3%; 37,017 rose 3.1%–5%; 2,549 rose 5.1%–10%; 1,127 rose 10.1%–15%; and 250 rose more than 15%. He said 85 properties decreased in value (often due to demolition or audits removing structures) and 2,615 required no change.

On commercial data, Edwards said 50% of commercial properties are classified as general commercial (retail, offices, medical), 22% industrial, and 28% multifamily; he reported commercial land-book totals rising (general commercial to about $1.5 billion, industrial to $677 million, multifamily to $833 million) and noted isolated steep increases when leases or income information became available. He said the office received assessments from the State Corporation Commission and the Virginia Department of Taxation for utility-like and railroad properties; those state-assessed values are incorporated at the city tax rate when received.

Councilmembers asked for follow-up materials and clarifications. Councilman Hugo asked whether the Port of Virginia appears as taxable or nontaxable on the chart; Edwards said the Port is taxed following a 2020 court outcome. Hugo also asked the assessor to produce a “typical house” comparison—valuing a representative Portsmouth single-family home against similar houses in neighboring localities—so the council can compare tax burdens; Edwards agreed to provide that comparison. Vice Mayor Moody asked how casinos are categorized (Edwards: “unclassified” because the system lacks a casino code). Moody and others pressed on the commercial backlog; Edwards said staff have been visiting properties and that the FY26 budget includes a request for an additional experienced commercial appraiser to hire in July.

Edwards listed several large or new projects that will affect the tax base, including CubeSmart self-storage at 1415 Effingham, the Port apartments on the former Kroger site (about 232 apartments), Grove Church/Ripley development proposing 208 apartments and 74 single-family lots, a Bain's Point affordable housing project (50 units), two transload facilities on rail properties, and several downtown conversions (for example, 545 High Street converted to 44 apartments and first-floor retail).

The assessor's office also reported program counts: 1,065 participants in the disabled-veteran (DAV) tax abatement program totaling about $319,000,000 in assessed value (about 2.9% of the proposed land book), and described next steps for notices, informal hearings, Board of Equalization applications and fourth-quarter audits.

Edwards closed by asking council to direct constituent contacts about reassessment questions to the assessor's office so staff can assist residents with neighborhood-specific information.