Supervisors scuttle cigarette tax hike, anticipate increased real estate tax revenue | Local News
WISE — A proposed increase in Wise County’s cigarette tax of 25 cents a pack died Thursday, but the board learned of a further increase in revenue without an increase in the tax rate.
The board, with new members Tim Boardwine and Randy Carter replacing retired supervisors Robbie Robbins and Bobby Cassell, voted 7-1 against the cigarette tax increase, with Supervisor Bob Adkins backing the measure.
The increase, which District Administrator Mike Hatfield said would have generated an estimated $50,000 annually, would have applied only to businesses located outside the municipal boundaries of the district’s six cities. He told the board that neighboring counties’ boards of directors would be considering their own 25-cent smoker tax hikes at different stages.
Chief Executive JH Rivers, noting the concerns of several supervisors, said the tax could cause county smokers to go to neighboring counties to buy their cigarettes and possibly other items they would buy in Wise County.
Treasury Commissioner Doug Mullins brought news about property tax revenues as part of the recently completed statewide reassessment. That process helped the county realize 98% of the fair market value of all of its residential and commercial properties, he told the board.
The revaluation results in an average 3% increase in home values, Mullins said, with most of that increase coming from residential building values. He said there was “very little” appreciation in commercial buildings and little appreciation in refurbished commercial buildings.
In terms of revenue, Mullins said the county can expect to expect $300,000 in general fund revenue per year from the reevaluation. In terms of the impact on taxpayers, he said a $100,000 property would see a tax increase from $690 to $710.
Mullions said the latest set of revaluation notices were sent to taxpayers on Monday. The appeals process for property owners begins Jan. 18 and ends Feb. 17, he said, and owners can schedule appointments during that timeframe if they want to contest their reappraisals. Typically, anyone contesting a reassessment gets a decision within a week or two, he said.
Appeals against reevaluation decisions can be filed with the County Board of Equalization starting March 7, Mullins said, and the Board of Supervisors must soon appoint a member for each of the county’s four districts to receive training from the state Department of Taxation prior to appeals period begins.
On other matters, regulators voted unanimously to request the Wise County Circuit Court to hold a special election in November 2022 to fill the unexpired term of former Commonwealth Attorney Chuck Slemp III.
Slemp’s term, who resigned this week to become assistant state attorney general under attorney general-designate Jason Miyares, would have ended in December 2023. Steven Davis, who announced his candidacy as the Republican nominee for office, was sworn in as Interim Commonwealth’s Attorney Wednesday. Former Assistant District Attorney Brett Hall has also announced his candidacy for the Republican nomination.
The board also approved a district school board resolution to spend $233,000 of federal COVID-19 relief funds on a contract to plan a two-part school renovation project. The contract would include a design for classrooms, arts and music rooms or other additions to Union Primary School, as well as toilet renovations at 10 of the county’s 13 schools and learning centers.