Lee County sets property tax at 74¢, personal property at $1.95 after heated debate over options and petition plan

The Lee County Board of Supervisors voted June 27 to set the real-property tax rate at $0.74 per $100 of assessed value and the personal-property tax at $1.95 per $100, following sustained debate about tax structure, fairness and an exploratory petition to seek a state-authorized local sales-tax option.

The vote followed a lengthy discussion in which staff explained Virginia’s long-standing 1% local-option sales tax for school construction and noted that Lee County currently collects roughly $2,012,670 per year under that 1% figure. Several supervisors urged pursuing a formal petition and finding a local delegate or senator to sponsor a bill at the General Assembly, while at least one supervisor said they could not support any tax increase because they had campaigned against raising taxes.

The board’s discussion centered on two competing ideas: keep raising property and personal-property rates to balance the county budget, or push a petition drive to ask the state legislature to allow or expand a local sales-tax mechanism. A majority favored authorizing a petition process and pressing local legislators to sponsor a bill; staff explained that petitions must be verifiable, require a local sponsor and that prefiling typically begins in December, meaning any legislative change would not be immediate.

Chair said the tax-levy vote was necessary to give the county the revenue base to adopt the FY2024–25 budget. Staff cautioned the board that shifting revenue sources or pursuing a sales-tax option could be constrained by state rules that sometimes require revenue-neutral adjustments to other local levies.

Speakers highlighted distributional concerns: one supervisor argued that a flat percentage boost can widen gaps between high-paid and lower-paid county employees, while others said a consumption-based tax (sales tax) would be fairer but is subject to state approval. The board voted in favor of the presented levy package by voice vote.

The board also voted to authorize staff to work with the county attorney on a formal petition format and to place petition signature locations in each district if the board proceeds. Staff said a petition would need a verified voter signature process and the board would need to identify a state legislator to sponsor any bill.

The board’s action immediately establishes the new tax rates; board members said they expect to continue discussions about revenue mixes and will pursue the petitioning option in parallel to short-term measures to balance this fiscal year’s budget.