Albemarle to make budget amendment mid-year | Local government
The county had lowered projected property tax collection rates for fiscal 2021 and fiscal 2022 because it was unsure how long the pandemic would last.
âThis did not turn out to be a correct assumption,â she said. “Our collection rate showed no change from the pre-pandemic years, so it was the biggest growth in that revenue in the fourth quarter was the realization that it hadn’t actually happened.”
Revenue from taxes on sales, meals and temporary stays fell 12.1% from July 2020 to February 2021 compared to the same period before the pandemic, according to a staff report. Then, from March to June of this year, those incomes were 5.6% higher than the same period before the pandemic.
In the current fiscal year, that revenue has remained above pre-pandemic levels – local sales and use taxes collected by the county from July to September of this year increased 21.5 percent per year. compared to pre-pandemic revenue collected during those three months, according to figures provided by the county. Meal tax revenue increased 3.7%, while transitional occupancy tax increased 2.5% from pre-pandemic revenue collected in those three months.
âOnce that is known, then you are faced with a calculation of what you do with that information,â Birch said. “It has improved dramatically, so when you take the projections and the formula that we use to look at our revenue structure, it’s absolutely prudent that we change the budget.”