Lower Real Estate Tax Rate Sought By Fairfax County Homeowners At Public Hearing

FAIRFAX COUNTY, VA — Amid a significant increase in Fairfax County home assessment values, numerous homeowners called upon the Board of Supervisors to provide a real estate tax rate cut.

While the Board of Supervisors ruled out a higher real estate tax rate, tax bills could still go up under the current rate due to higher assessment values. Residential property values are up an average 9.57 percent across Fairfax County, while non-residential property values increased by an average 2.27 percent.

Under County Executive Bryan Hill's budget proposal that keeps the real estate tax rate the same, homeowners would see an average $666 increase in their real estate tax bill. That budget proposal does have $79.3 million in unallocated funds that can be decided by the Board of Supervisors.

The current real estate tax rate is $1.14 per $100 of assessed value. According to board documents, the rate that would collect the same amount of real estate tax as the last year would be $1.0583 per $100 of assessed value. County staff said that would result in a $240 million revenue decline.

Tuesday featured a public hearing on the real estate tax rate as required by state law. Virginia law requires a locality to either reduce its tax rate so a real property tax increase is no more than 1 percent, or hold a public hearing and adopt an increase over 1 percent "if any such increase is deemed to be necessary by such governing body."

The public hearing included some regular advocates of lower taxes. Arthur Purves, president of the Fairfax County Taxpayers Alliance, called for a 10-cent tax rate reduction to fully mitigate the impact of increased assessment values.

James Parmalee, who has testified at past budget hearings in support of a tax reduction, told the board the impacts of inflation should be factored into decisions on the tax rate.

"Please lower the rate at least to $1.05 if not lower, and consider how many folks are out there hurting because of high taxes and inflation," said Parmalee.

Vittal Anantatmula, who has lived in Fairfax County since immigrating to the U.S. 30 years ago, said he chose living in the county due to quality education, affordability and low crime. However, he believes those factors have worsened over time.

On real estate taxes, Anantatmula said, "Buying a house in the county is beyond the reach of middle class families. Property tax is almost equal to the mortgage payment."

Anantatmula said he'd consider selling his home and moving elsewhere if taxes go up.

Others provided specific examples of what a higher tax bill would mean in their communities.

Robert Marino, president of the Oakbrook Community Council in Fairfax Station, said assessments rose between 14 and 28 percent in the community of 79 single-family homes. Marino believes homeowners in his community will pay $1,500 to $1,800 more in taxes without a rate reduction. He described the community as a mixed of retired residents, residents nearing retirement, families with older children, and families with younger children.

"Your one-cent cut that you made last year is not going to do it for my residents or anyone else in the county," said Marino. "You need to enact a tax rate that is revenue neutral, at least to minimize the impact on the citizens that you serve."

Jim Scanlon, a Burke resident, said his tax bill would go up 11.5 percent following a 9.5 percent increase last year. He said money that goes toward the increases could go toward a car after his car's transmission died, major repairs needed for the family's home, or college savings for his children.

"While we are forced to live within our means and prioritize our spending, you've been irresponsibly, unwilling to do so," said Scanlon in public testimony.

Peggy Martz testified in the impact of real estate taxes on seniors. Martz was "shocked" when receiving her assessment that would result in a 21.48 percent increase, a significant jump from a 1.4 percent increase last year.

"How do you budget for a 21% increase?" Martz said. "This is a hardship for those on a fixed income who are left to dip into their nest eggs, making it difficult to retire in place. Seniors are moving to more tax friendly areas."

This year, there is expanded eligibility for real estate tax relief for seniors and people with disabilities. The Board of Supervisors voted in late 2021 to expand income and net worth eligibility for the first time in 15 years, starting in 2022. A new tax bracket for relief and tax payment deferral will also be added in 2023.

Residents can still provide public testimony on the real estate tax rate or any part of the proposed county budget through April 26. The full Board of Supervisors will have a budget markup on April 26, followed by budget adoption on May 10.