Real Estate Tax Rate Could Remain Same Or Be Lowered In Fairfax County

FAIRFAX COUNTY, VA — The Board of Supervisors voted Tuesday to set an advertised real estate tax rate at the current rate, which means a higher rate cannot be considered for fiscal year 2023. Property owners who have higher assessment values in 2022 could still face higher tax bills even if the rate remains unchanged.

The board set the advertised tax rate of $1.14 per $100 of assessed value. A lower rate could be approved, or the board could opt to keep the tax rate the same.

The tax rate was proposed to remain the same in County Executive Bryan Hill's budget proposal. Even if the rate remains the same, homeowners would see an average $666 increase in their real estate tax bill.

"We are advertising a ceiling here, not the actual tax rate," said Board of Supervisors Chairman Jeff McKay at Tuesday's meeting. "As I've said repeatedly, I expect and I will only be voting for and supporting a budget that is a lower tax rate than this. My reasons for advertising the $1.14 is simply because I think it's the fiscal responsible thing to do with what is going on in the world today what we've been through certainly over the past two years, the uncertainty of our economy, world affairs, inflation all of the other things that are affecting us."

Springfield District Supervisor Pat Herrity, who has spoken in the past about rising property values increasing tax bills, was the only vote against keeping the real estate tax ceiling at $1.14 per $100 of assessed value.

Lee District Supervisor Rodney Lusk said he'd support lowering rates of the real estate tax and personal property tax on cars due to rising values of vehicles and homes.

Mason District Supervisor Penny Gross reiterated a point brought up by supervisors over the years: localities need authority from the state to diversify revenues to rely less on real estate tax revenue.

"I think it's important that our constituents understand what the restrictions are on revenues, and we need more advocacy in the General Assembly," said Gross.

Hunter Mill District Supervisor Walter Alcorn noted the board just discussed the police department and other county agencies struggling with compensation.

"I would just remind us that as we talk about these really critical compensation issues, we have to remember that they have to be paid for," said Alcorn. "I, too, will be looking at the tax rate and looking at tax relief this year."

Senior real estate tax relief is being expanded in two phases after approval from the Board of Supervisors in December 2021. The maximum gross incomes to be eligible for tax relief are being increased in 2022, and a new tax bracket for relief and a tax payment deferral option on will start in 2023. Braddock District Supervisor James Walkinshaw said the deferral option would allow seniors to defer their real estate taxes until the home is sold or transferred to an heir.

"We hear every year that there are senior citizens who are being priced out in Fairfax County," said Walkinshaw.

Hill's budget proposal includes compensation increases and fully funding Fairfax County Public Schools' request. Hill leaves nearly $80 million unallocated for the board to consider for funding.

Supervisors have held or will hold town halls on the budgets for the county and Fairfax County Public Schools. The Board of Supervisors will be holding public hearings on the budget proposal April 12 to 14, followed by a mark-up of the budget on April 22 and 26. Budget adoption is scheduled for May 10. After county funding is determined, the Fairfax County School Board will adopt its approved budget on May 26.

SEE ALSO:

• Real Estate Assessments Up 9.57% For Most Fairfax Homeowners
• Fairfax Schools Would Be Fully Funded Under FY 2023 Budget Plan
• Senior Tax Relief Expansion OK'd By Fairfax County Supervisors