Arlington County Budget Approved With Unchanged Real Estate Tax Rate

ARLINGTON, VA — A flat tax rate was approved in the latest Arlington County budget by the county board on Saturday, but some homeowners could still see tax bills go up.

The county's $1.55 billion budget for fiscal year 2024 is a 3.5 percent increase over the current year's budget. Funding priorities in the budget include housing support, salary and benefit increases for county employees, support to tackle commercial vacancies, and increased support for public schools.

"As we return to normalcy after years of prioritizing critical operations and making difficult budget decisions during the COVID-19 pandemic, Arlington is finally in a position to build much-needed capacity within its departments and in its efforts to address community priorities and needs," said Arlington County Board Chair Christian Dorsey in a statement after the budget approval.

Residents will see fee increases and real estate tax bills impacted by increasing property assessment values. The Arlington County Board kept the real estate tax rate the same at $1.013 per $100 of assessed value, but homeowners whose assessed home values went up will see higher tax bills. When the budget was proposed, the county reported property assessments increased by 4.5 percent on average.

As a result of the new budget, the average residential property owner a $369 average increase in real estate taxes. The board also approved a $98 increase in household solid waste fees and increase in water-sewer rates, which means a $26 annual increase for the average residential customer.

However, the average personal property tax bill on vehicles is expected to decrease by $41, as indicated in the county manager's budget proposal. Unlike last year when the nation was seeing a surge in the valuation of vehicles, county staff did not recommend a personal property tax rate decrease in the latest budget as car value increases have slowed.

The budget provides over $83 million for housing programs, including $14.4 million for its Housing Grant program, $5.4 million for the Permanent Supportive Housing program, $4.6 million for eviction prevention and $20.5 million for the Affordable Housing Investment Fund.

"Adding funding to the Affordable Housing Investment Fund, for example, ensures that we maintain our vital role in financing affordable housing development within Arlington," said Dorsey. "Moreover, the County Board is eager to capitalize on opportunities that may arise from the Homeownership Study, helping us further understand how to better support existing and aspiring homeowners."

On the personnel side, the budget includes salary increases and additional benefits for county employees to help with recruitment and retention. County employees will receive expanded parental leave, bereavement leave, and increased contributions for adoptions and Health Savings Accounts.

Arlington Public Schools is receiving $608.2 million, which reflects nearly half of the county's tax revenues. The funding transfer to public schools is a 4 percent increase over the current fiscal year. Along with funding for public schools, the budget provides $520,000 to support four opioid behavioral health therapists for youth in Arlington Public Schools.

With commercial vacancies causing concern in Arlington County, the budget provides $1 million for the Arlington Innovation Fund and continued support for small businesses.

Stay tuned as the county posts the full approved budget on its website.