Commissioner briefs board on $2.13M levy increase, warns of falling sales ratio

The Smyth County Commissioner of the Revenue briefed the board on changes to the county’s levy base and how state sales‑ratio calculations affect future revenues. The commissioner reported a $2.13 million increase in combined levies since 2023 (real estate, public service, personal property, minerals, vehicle license and consumer taxes) and attributed roughly $1.27 million of that increase to real‑estate reassessment and an adopted rate higher than the effective rate.

"Since 2023, overall, you've seen a $2,130,000 increase in your levies," the commissioner said, and explained that the county’s 2025 levy‑per‑penny is $216,001.43. He warned the board that a falling sales ratio—used by the state to convert local assessments to true market value—lowers public‑service levies and can increase the local share for school funding because state funding formulas use adjusted values. The commissioner noted the county’s estimated sales ratio is about 74% based on last year’s sales and said current data point toward a ratio below 70% next year, which would trigger additional state attention and potentially require more frequent reassessments.

The presentation also flagged local issues: estimated land‑use deferrals (an estimated deferred value of about $171,000,000), changes to how conservation easements are treated under state code, and concerns about "nutrient bank" easements that, according to the commissioner, can lock farmland under perpetual, for‑profit easements that restrict agricultural use. Supervisors asked whether more frequent reassessments would help; the commissioner recommended a mixed reassessment cycle and expanded public education to explain that reassessment aims to align values with fair market values, not simply raise taxes. The board did not enact policy changes at the meeting; staff were asked to bring follow‑up materials and options for reassessment frequency and public outreach.