Cape Charles Announces Significant Property Tax Reduction Following Utility Sale

CAPE CHARLES, Va. — Residents of Cape Charles will see a substantial reduction in their property taxes this year, following the sale of the town’s water and wastewater utilities to Virginia American Water. The proceeds from the sale have been used to pay off the town’s bonded indebtedness, resulting in a significant financial benefit for local taxpayers.

Due to the elimination of nearly $225,000 in scheduled debt service payments for the fiscal year 2025, the Cape Charles Town Council has directed that the savings be passed on to residents through a reduction in the real property tax rate. Initially, the Town had planned to equalize the tax rate by lowering it to offset the increase in recent property values. However, with the added financial relief from the utility sale, an additional reduction will be implemented.

As a result, the real property tax rate will decrease by nearly one-third, from the current rate of 21.59 cents per $100 of assessed value to 14.81 cents per $100. This significant cut is expected to provide much-needed relief to property owners in the community.

The decision marks a notable fiscal shift for Cape Charles, reflecting the Town’s commitment to leveraging financial strategies to benefit its residents. The sale of the utilities and the subsequent debt repayment underscore the town’s efforts to maintain fiscal responsibility while supporting local taxpayers.

For more information, residents are encouraged to attend the upcoming Town Council Public Hearing on June 6th or visit the town’s official website.