James City County approves $413 million budget, lowers real estate tax rate

It's May 27. The county's two Republicans voted against the budget, which creates a new admissions tax and raises meal taxes to 6%. Also approved: $196 million in bonds for new projects.

Busch Gardens photo. New admissions tax could be worth $5 million annually, county says.

With the two Republican representatives dissenting, James City County’s Board of Supervisors approved a $413 million budget that lowers real estate tax rates, but adds a 5% admissions tax on Busch Gardens and movie tickets and increases the meals tax to 6%.

Chair John McGlennon, Vice Chair Ruth Larson and Jamestown District Representative Jim Icenhour voted in favor of all three.

Stonehouse District Representative Barbara E. Null and Powhatan District Representative Tracy Wainwright voted against them.

The new budget lowers the real estate tax rate from 83 cents per $100 in assessed value to 80 cents. It also provides an additional two-cent tax credit in the first year of the two-year budget cycle, lowering the effective rate to 78%. In the second year taxes would return to 80 cents.

The rate changes were designed to partially offset higher assessments that raised the median value of county homes by 11.3%.

The new amusement tax would apply to theme parks – Busch Gardens – and to the sole movie theater in the county. County staff estimated it could bring in $5 million the first year. All of the money would be dedicated to debt service or capital improvement, according to Financial and Management Services Director Sharon McCarthy.

A 50% increase in the meals tax, to 6%, would not take effect until January 1 of next year. County staff estimate the meals tax will be worth $14.4 million in revenue to the county.