Loudoun's Fiscal Year 2025 Budget Adopted With Lower Real Estate Tax Rate

LOUDOUN COUNTY, VA — A lower real estate tax was approved in the Loudoun County budget, but homeowners' tax bills will rise on average due to property value appreciation.

The Board of Supervisors adopted the $6.9 billion budget for fiscal year 2025, which begins on July 1. It includes a real estate tax rate of $0.865 cents per $100 in assessed value, which is one cent lower than the current rate. The lower tax rate came after Loudoun County Administrator Tim Hemstreet had proposed keeping the tax rate the same.

However, homeowners' average tax bill will increase by about $200. Property value changes vary depending on the type of home, but the county says increases range from 3.7 percent to 5 percent.

The budget keeps the personal property tax rate at $4.15 per $100 in assessed value. Pending legislation in the Virginia General Assembly would allow localities to set separate personal property tax rates for computer equipment and vehicles. If the bill is approved, the Board of Supervisors will consider lowering the personal property tax on vehicles for the 2025 tax year beginning Jan. 1, 2025.

Loudoun County Public Schools requested an additional $131 million from the county budget. The adopted county budget includes $112 million of the request due to anticipated $19 million in additional state funding expected for LCPS. The total transfer to LCPS from the county budget is $1.3 million.

On the personnel side, the budget provides a 7 percent merit increase for general county government employees, step increase and 9.4 percent salary scale adjustment for uniformed fire and rescue and sheriff's deputies. Uniformed first responders will receive an average pay raise of 12.4 percent.

Other key parts of the budget are 256 new positions in 26 county departments, dedicating one-half cent of the real estate tax to affordable housing programs totaling about $7.4 million and $40 million for the revenue stabilization fund the board created to address unreliable revenues from data centers. The Board of Supervisors will consider funding another half-cent of the real estate tax for affordable housing later in 2024.

The board also adopted the $3.5 billion fiscal years 2025-2030 Capital Improvement Program, which plans for county and school projects over the next six years. New county projects in the capital budget are the Cascades Library and Senior Center complex renovation, preliminary design of an Eastern Loudoun Community Arts Center, a Purcellville Fire and Rescue Station addition, an LCPS Eastern Transportation Facility, a school replacement program, Bull Run Post Office Road Realignment, roundabout at Route 15/Hogback Mountain Road, and an expanded scope of the Route 7 long-term improvements from Route 9 to Dulles Greenway.

The county government will share the full approved budget by the start of fiscal year 2025, or July 1, 2024. More information about the proposed budget is posted at loudoun.gov/budget.