CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – City Council Monday night approved a $253-million general fund budget, complete with more revenue generation from a 2-cent real estate tax increase and 1-percent hikes in the lodging and meals taxes. While the budget passed unanimously, Councilor Michael Payne voted against the tax package calling the meals tax regressive… and sounding a drum about UVA’s he’s sounded before: if they paid even 50% of what their tax liability on city land, city revenues would look different.
Payne advocated for even more than the 3-cent real estate tax increase advertised, and Councilor Lloyd Snook pointed out even a 4-cent real estate tax increase would not have made the $3-million revenue the meals tax is generating for city pay increases and school funding. Payne said he did not want to “relitigate” the 2025 budget, but asked as Council looks ahead to future budgets that more funding be taken care of through real estate tax rates, and that the city expand the real estate tax relief program for lower income residents.