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City holds first reading on 2025 ad valorem tax rates; manager says taxes not increasing under compensating rate
Summary
On first reading the City of Richmond presented Ordinance 25-22 establishing 2025 ad valorem tax rates; the city manager said officials used the compensating rate so property and personal property taxes will not rise despite a large increase in the taxable base.
The Richmond City Board of Commissioners held a first reading of Ordinance 25-22, which sets the city’s ad valorem tax rates for fiscal year 2025.
City Attorney read the ordinance language establishing rates: the personal property ad valorem tax for the general fund at 13.7 per $100 of assessed value, the real-property general fund rate set at 11.1¢ per $100 of assessed value, and motor-vehicle ad valorem at 28.7¢ per $100. The ordinance also includes a 2% discount on bills paid prior to Nov. 1, 2025, a face-amount due date range and penalties and interest for late payment beginning Jan. 1, 2026.
City Manager told commissioners the council chose to set the compensating rate, which means no increase in tax rates despite growth in the tax base; he said the city’s taxable assets grew by roughly $390 million and said, "we felt very comfortable taking the compensating rate and allowing these taxes to go down at this time." Commissioners did not vote on final adoption; the ordinance will return for a second reading.
Why it matters: Setting the compensating rate keeps millage effectively flat and shifts the immediate effect of growth to lowering the rate; property owners will see rates set now, and implementation details (discount and penalty deadlines) are included in the ordinance text.
