Shortly after this issue is published, residents should begin receiving their Real Estate Tax Bills (due June 5, 2025). While these bills will be much the same as prior years, Orange County is undergoing a change to the tax cycle of which residents should be aware. The soon-to-arrive bill, which will be due June 5, 2025, will technically not be a “First Half Real Estate” bill as it usually would. Instead, it will be the full bill for a one-time, shortened tax year, which was created to serve the purpose of aligning Orange County’s tax year with its fiscal year. More information about why this change is taking place is available below, but residents should be assured that the difference is really on the accounting side, and not much will change from the taxpayer’s perspective . For starters, there is no extra tax bill . There will still be one bill due in June and one bill due in December, as before. What to Know about the Tax Year Realignment and the “Short” Tax Year By: Orange County Communications Department Difference of Six Months Until this year, Orange County’s tax cycle has matched the calendar year, January 1 to December 31. Its fiscal year, however, has run July 1 through June 30. The two cycles being out of step by six months has created the potential for certain budgetary issues to arise. For example, the Orange County Board of Supervisors sets the tax rates in the spring, shortly before the bills due in June would be mailed. Those rates became effective right away with the next bill, but the budget year had not yet ended. So, any increase or decrease in expected revenue based on the newly-changed tax rates had the potential to cause unforeseen impacts on the County’s budget. Fiscal Year July 1 through June 30 Tax Year July 1 through June 30 Tax Year Fiscal Year July 1 through June 30 January 1 through December 31 Interim “Short” Tax Year January 1, 2025 through June 30, 2025 Years Synced! A one-time, six month-long “short” tax year has been created to make up the difference between the two cycles. It only has one tax bill. Syncing the two cycles became an even greater priority following the establishment of a Real Estate Assessment Department. Since Orange County will now be conducting reassessments annually (instead of every four years like before), it was even more important to align the cycle so that all steps occur in the proper order. Going forward with the corrected cycle, assessments will be updated first, then tax rates will be set in the spring, then there will be an opportunity for substantial notice and lead time over the summer and fall before the new assessments and rates become effective for the bill due in December. Orange County is aware that residents may have questions about this change. With that in mind, a new webpage has been created on the County’s website at www.orangecountyva.gov/shorttaxyear. This new page features an explanation of the change as well as several frequently asked questions and the corresponding answers. Questions can also be directed to one of the following offices: New Alignment Previous Alignment Commissioner of the Revenue’s Office - (540) 672-4441 The Commissioner is responsible for accurately assessing all personal and business property and for Individual Income tax filing, Short Term Rental tax, and Meals Tax. Real Estate Assessment Department - (540) 661-5430 The Real Estate Assessment Department conducts annual assessments of real estate property in Orange County according to Code of Virginia § 58.1-3252. Treasurer’s Office - (540) 672-2656 The Treasurer’s Office is responsible to the citizens of the locality for the receipt and collection of the revenue, the safekeeping of revenue, accounting for and disbursements of the revenue, and the collection of state funds under the Code of Virginia.
3
OCI April 2025
Powered by FlippingBook