CAPE CHARLES, Va. — The Cape Charles Town Council approved a $20 million municipal budget for fiscal year 2026 that maintains the current real estate tax rate while making modest increases in some service fees.
The budget, adopted this week, holds the town’s real estate tax rate at 14.81 cents per $100 of assessed value. Personal property taxes remain at $1.00 per $100, while the boat tax stays at one cent per $100.
Residents will see a slight uptick in trash collection costs. The monthly fee per receptacle will rise by 45 cents, bringing the total to $21.25 per month. The fee will be billed quarterly.
As part of the approved spending plan, the council left intact roughly $160,000 earmarked for potential upgrades to streetside electrical systems on Mason Avenue and Strawberry Street. The improvements are intended to support year-round lighting on the town’s commercial corridors.
During the meeting, several residents spoke in favor of the upgrades, with letters of support also read into the record. Currently, tree lights along Mason Avenue are powered by temporary electric drop cords. Supporters said a permanent electrical system could enhance the downtown experience and support events and beautification efforts throughout the year.
Town officials said they will solicit bids for the project, with the scope and timeline dependent on cost estimates.
The adopted budget appropriates funds across several categories:
- General Fund: $7.86 million
- General Capital Fund: $6.77 million
- General Debt Service: $3.95 million
- Public Utilities Fund: $80,000
- Harbor Fund: $1 million
- Sanitation Fund: $361,177
Other established tax and fee rates include:
- Vehicle Tax: $31 per vehicle; $18 for trailers
- Golf Cart Decal: $31
- Transient Occupancy Tax: 4%, plus $1 per night (hotels/B&Bs) or $4 per night (residential rentals)
- Meals Tax: 5.5% monthly
- Admissions Tax: 3% quarterly
- Short-Term Rental Tax: 1% quarterly
The new fiscal year begins July 1, 2025, and runs through June 30, 2026.
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