Same Real Estate Tax Rate Proposed In Loudoun County's 2025 Budget

LOUDOUN COUNTY, VA — The real estate tax rate is proposed to remain the same in County Administrator Tim Hemstreet's budget proposal, but homeowners could still see tax bills rise with increased assessments. The budget also proposes increases for county services and Loudoun County Public Schools, although the school division would be left with a $10 million funding gap.

Hemstreet presented the budget proposal to the Board of Supervisors Wednesday. The proposal calls for keeping the real estate tax rate at $0.875 per $100 of assessed value, based on Board of Supervisors guidance.

The budget also provides an alternative reduction option with a tax rare of $0.84 per $100 of assessed value. This is the equalized rate that would keep tax bills the same for the average homeowner. However, it would provide $21 million less revenue to the county government and $31 million less to Loudoun County Public Schools, creating a funding gap for the school division.

Homeowners who saw property values rise on their 2024 assessments would see an increase in tax bills even with a flat tax rate. The average tax bill for all home types would go up by $275 with a flat tax rate.

According to the county's real estate assessment data, single-family home values in areas with public water and sewer increased by 4.67 percent overall, townhouse values increased by 4.96 percent, and condo values increased by 3.72 percent, compared to 3.72 percent in 2023. Single-family properties up to 20 acres in rural areas without public water or sewer, values increased by 3.44 percent, rural properties under 100 acres increased by 5.65 percent, and rural properties above 100 acres increased by 9.52 percent.

The budget also proposes a 5-cent reduction in the personal property tax rate on vehicles from the current $4.15 per $100 of assessed value to $4.10 per $100 of assessed value. According to a county news release, the reduction is part of a strategy to balance real estate and personal property tax revenue. The fiscal year 2025 budget proposal provides 55 percent of general fund revenue through the real estate tax, close to the 60 percent goal recommended by county staff. In addition to vehicles, the personal property tax applies to business equipment, and the county has been increased revenues from taxes on computer equipment.

The $5.2 billion budget includes a $15.7 million increase to continue providing existing core services, an increase of $41 million for employee pay, $7.4 million for affordable housing through a one-half cent of the real estate tax, and $40 million for the Board of Supervisors' new revenue stabilization fund to address revenue fluctuations from data centers. A county news release cites population increases as a key factor driving county program and service needs in the proposed budget. Loudoun County's population is expected to increase by close to 100,000 through 2050.

The pay proposals to keep Loudoun County competitive for retention and recruitment of employees are a 7 percent merit increase for general county employees and 9.4 percent salary scale adjustment and step increase for uniformed fire and rescue staff and sheriff's deputies. These uniformed first responders would see an average 12.4 percent pay increase. The budget adds 263 positions in 26 county departments, with a significant share going toward the opening of new facilities in the next two years.

The proposed Loudoun County Public Schools transfer would be a $121 million increase from the current budget. The Loudoun County School Board has already passed its $1.8 billion fiscal year 2025 operating budget, subject to final approval based on the county budget process.

LCPS had requested a $131 million increase, so Hemstreet's budget proposal would leave the school division with a $10 million funding gap. With the $0.84 per $100 of assessed value tax rate option, LCPS would face a $41 million funding gap — a $10 million gap already proposed with a flat tax rate and $31 million with a lower tax rate. The county budget presentation noted potential new state revenue could help with the LCPS funding gap.

Along with the operating budget proposal, Hemstreet presented a 10-year, $3.5 billion capital budget for county and school capital projects. The fiscal year 2025-2030 Capital Improvement Program includes new projects like the Cascades Library and Senior Center complex renovation, funding for preliminary design of an Eastern Loudoun Community Arts Center, an addition to the Purcellville Fire and Rescue Station, Route 15/Hogback Mountain Road roundabout, Route 7 improvements from Route 9 to Dulles Greenway, an Eastern Transportation Facility for LCPS and a school replacement program.

Following the budget presentation, the Board of Supervisors will hold public hearings at 3 p.m. on Feb. 28, 6 p.m. on Feb. 28 and 9 a.m. on March 2. Additional budget work sessions will be held in March. All meetings are held in the Board Room of the Loudoun County Government Center, 1 Harrison St. SE, Leesburg, VA. Residents may also view meetings virtually on Comcast Government TV Channel 23 and Verizon FiOS Channel 40 and live at loudoun.gov/meetings.

Residents may testify at public hearings by signing up to speak at 703-777-0204, leave a message on the Board of Supervisors’ Comment Line at 703-777-0115, email the Board of Supervisors at loudounbudget@loudoun.gov, or write to the Board of Supervisors, P.O. Box 7000, Leesburg, VA 20177.

The Board of Supervisors will approve the final budget with tax rates on April 2.

For more information, visit loudoun.gov/budget.