James City County board approves $15.3 million tax refund after state ruling

The James City County Board of Supervisors voted unanimously at a special meeting to amend its FY2026 budget and authorize a $15,285,992.92 tax refund to a major taxpayer after the state tax commissioner ruled in the taxpayer’s favor in 2024.

Stevens, a county staff presenter, told the board the resolution would increase the general fund by up to $60,000,000 from the county’s unassigned fund balance to provide the refund and authorize payment. “Bottom line, we believe we owe the taxpayer $15,285,992.92,” Stevens said, and added that the county would mail the check “this afternoon” if the amendment was approved.

Stevens said the taxpayer originally appealed to the state tax commissioner in 2021, arguing that its property should have been classified as real property rather than business tangible personal property for 2017–2020. He said the state tax commissioner ruled in favor of the taxpayer in 2024, and that interest and costs on the refund amount were accruing at about $83,000 per month. Stevens also said the county has billed the taxpayer for more than $21,000,000 in taxes for the same time period under the county’s reclassification.

Stevens told the board that a prior December 2025 payment of $2,900,000 to the taxpayer had been canceled at the taxpayer’s request, and that the current resolution would provide the full refund without reducing it by taxes the county says are owed under the new classification.

The chair opened the required public hearing; staff reported there were no public comment cards and the chair closed the hearing. A motion to approve the resolution was made and, after a roll-call vote, the board recorded unanimous approval; the motion carried.

The board adjourned the special meeting and scheduled its next regular meeting for 5 p.m. on March 10.