By Linda Cicoira — Accomack County is gathering wealth.
It recently collected $190,000 in taxes for Chincoteague land owned by Edward Lunn Tull, officials said.
In the first 30 days after the real estate delinquent tax list was released, “the county saw an increase in delinquent real estate tax collections of approximately $212,000 over the amount collected in the previous year (excluding penalty and interest),” said Accomack County Administrator Mike Mason. “A large portion of this came from one delinquent taxpayer.”
And “total revenue for the third quarter of fiscal year 2019 exceeded revenue for the same period in fiscal year 2018 by 15.9%,” a county report stated. “For the fiscal year to date, major revenues are up 3.8% as compared to last year.”
In addition, the county’s rainy day fund or money that is put aside as an insurance policy in case a major catastrophe occurs, has grown to $10.8 million or approximately 13.7% of revenue as of June 30, 2018. The plan is to increase it to 16.7% of revenue by 2021. A transfer of $855,944 to the fund was approved for June 30. That would take the total to $11,655,944.
The estimated savings from reissuing bonds was $750,000. County Administrator Mike Mason recently reported to the board of supervisors that the initial estimate was $550,000.
“There was a year-to-date anticipated decrease of 24.9% in personal property tax revenue for public service corporations and a quarterly increase of 94% in personal property tax revenue due to increased delinquent collection activity,” the county report stated. “Year-to-date revenue for fiscal year 2019 represents a 3.8% increase over the same period for fiscal year 2018 and is well ahead of the budget forecast,” the report continued.
Accomack’s “single largest revenue source” is real estate taxes, which account for 35% of all estimated revenue for fiscal year 2019. Personal property taxes are the second largest revenue source or 16% of fiscal 2019 estimated revenue. Local sales and use taxes make up 7% of the revenue.
The General Assembly passed the Personal Property Tax Relief Act in fiscal year 1998 to gradually eliminate the personal property tax on automobiles by increasing state funds to localities. The amount of aid is based on the Accomack’s pro rata share of a capped amount set by the state, which is remaining at about $3 million.
“This aid enables the county to reduce taxes on personal use vehicles valued between $1000 and $20,000 by 44% and to eliminate taxes on personal use vehicles valued under $1,000,” the report states. “These rates can be expected to decrease as taxable values increase. The relief act makes up 5% of all estimated revenue for fiscal 2019.”
Photo credit: CheapFullCoverageAutoInsurance.com
