Charlottesville staff detail tax‑relief programs as council weighs proposed increase

Todd (Commissioner of Revenue) explained the city’s three tax‑relief programs and how they are structured to adjust automatically with income and assessed‑value measurements.

Todd said the programs are pegged to HUD median family income (MFI) and that thresholds move with local incomes and assessed values, which reduces the need for annual administrative adjustments. He described the CHAP program’s home‑value threshold (set at the assessor’s average residential value) and said grant amounts are tiered at $1,000, $1,500, $2,000 or $2,500 depending on household income relative to the threshold.

Todd and staff said the programs are generally well used and that the office comes close to spending allocated amounts each year; they maintain data on the number of households using each tier and can provide detailed counts and distribution on request. Todd also cautioned that relief programs mitigate but do not eliminate the fiscal effect of a tax increase: “you can’t relieve your way out of a tax increase,” he said.

Council asked for additional statistics on take‑up and the share of eligible households reached; staff said they can provide that information and projections for budgeting purposes.

The work session closed with council direction to advertise a 2¢ real‑estate tax rate and for staff to prepare alternate scenarios in case councilors choose different revenue paths before adoption.