By Taylor Boyd
The Henry County Board of Supervisors adopted its fiscal year 2026-27 budget during a May 5 work session and voted 5-1 to set the real estate tax rate at 50 cents per $100 of assessed value.
Horsepasture District Supervisor Debra Buchanan cast the lone dissenting vote in the 5-1 ballot.
Buchanan said she would have preferred a lower tax rate to avoid burdening elderly homeowners.
The board also unanimously adopted the proposed FY27 budget and school expenditure budget, contingent upon state and local funds becoming available as projected.
The adopted budget includes several staffing additions and contingency measures intended to maintain county services while state budget negotiations continue.
Supervisors authorized County Administrator Dale Wagoner to move forward with hiring four additional positions in the Department of Public Safety, along with a cybersecurity technician, a code compliance inspector, a fiscal technician and an administrative assistant for the Sheriff’s Office.
County officials said the positions are intended to address growing operational demands and improve efficiency across departments.
Officials noted the adopted tax rate was selected to balance current funding priorities while maintaining flexibility as the state finalizes its budget.
The budget prioritizes public education, public safety and workforce stability. It also includes a 2 percent cost-of-living adjustment for county employees and limits capital spending primarily to maintenance and equipment replacement.
The budget reflects the county’s recent reassessment, which increased total property values by about 51 percent overall and 66 percent for residential properties.
Although the adopted rate is lower than the current rate of 55.5 cents per $100 of assessed value, many property owners are expected to see higher tax bills because of increased assessments.
To offset some of those impacts, the budget expands real estate tax relief for seniors and individuals with disabilities by raising the income eligibility threshold to $40,000.
The budget also eliminates the $20.75 motor vehicle license fee and replaces that revenue through adjustments to personal property and machinery and tools tax rates.
The board will formally appropriate the FY27 budget at its May 26 meeting.
The decision followed public concerns raised during the board’s April 28 meeting, when several residents spoke against the proposed tax increase.
At that meeting, Wagoner said the county proposed adopting a rate no higher than 50 cents per $100 of assessed value.
“The difference between the lowered tax rate and the proposed rate would be 13 cents per $100 for approximately 35 percent,” Wagoner said.
Board Chairman Jim Adams, of the Blackberry District, said supervisors legally could not adopt a rate above the advertised amount.
“We cannot go above that as it’s a law requirement. However, it can be taken into consideration to go lower than that, but we cannot exceed that amount,” Adams said.
Collinsville District Supervisor Chris Lawless said the county initially began discussions with a revenue neutral tax rate of about 37 cents, but additional financial pressures changed the outlook.
“It was brought to our attention that there was a deficit of $3 million from the Adult Detention Center, we’ve lost population and we’re doing better by the LCI (Local Composite Index), and now we have to pay $1 million that the state was giving us that we now have to do directly. That’s a total of $4 million,” Lawless said.
Lawless also cited increased refuse disposal costs.
“We don’t have a landfill and that has to be taken from here to Danville facilities. We have no control over what another company does, so that’s another part. That’s $5 million in total we have to make up,” he said.
Residents who spoke during the April 28 meeting expressed concerns over the effect reassessments and the proposed rate would have on taxpayers.
Jon Lexa said his property assessment increased from $140,900 to $268,100.
“That’s a 90 percent increase, which kind of took me back,” Lexa said.
“Our new valuation on our residents would change our property tax at the new rate of 50 cents that you’re proposing from what we’re paying $782 per annum to $1,340 per annum. That’s a 71 percent increase we’re facing,” he said.
With insurance, gas and food costs already rising, Lexa said the tax increase could “be the falling domino to just knock some people down to where they can’t get up again.”
Andrew C. Palmer urged the board to adopt the originally proposed 48-cent rate.
“Raising the rate further to 50 cents per $100 of assessed value only compounds this burden on residents who are already struggling with economic pressures,” Palmer said.
Jody Duncan questioned why projected county revenues would increase more sharply than the proposed budget.
“The proposed budget is only increasing four percent. So my question is what is the other 31 percent of money going to?” Duncan said.
David Craig suggested businesses that contribute to litter and refuse problems should shoulder more of the financial burden.
“One thing I’ve done is I help with some of the trash pick-up, and a high percentage is from the fast food restaurant drive-ins,” Craig said. “So I think we should shift some of the burden to the ones that are creating the problem.”
In other matters on April 28, the board:
*Scheduled public hearings for the May 26 meeting on a proposed outdoor tire storage ordinance and an ordinance amendment exempting livestock from being considered personal property.
*Approved several appropriations, including funding for the Ridgeway Bee Festival, youth summer activities, opioid response programs, school infrastructure projects and Sheriff’s Office vehicle repairs.
*Approved participation in a proposed opioid settlement.
*Awarded contracts totaling more than $121,000 to remove unsafe structures.
*Approved several rezoning requests in the Reed Creek and Horsepasture districts.
*Approved proclamations recognizing the 70th anniversary of the Martinsville Alumni Chapter of Kappa Alpha Psi Fraternity, April as Sexual Assault Awareness Month and May as Ruritan Awareness Month.
*Heard updates from VDOT and on delinquent tax collection efforts.
