Tax Rate Public Hearing To Be Held As Alexandria's Final Budget Decision Nears

ALEXANDRIA, VA — The final budget decision by Alexandria City Council is approaching on May 1, but first there will be a public hearing on the tax rates Wednesday.

A higher real estate tax rate is being considered in the fiscal year 2025 budget. City Manager James Parajon had proposed a budget that would keep the existing real estate tax rate — $1.11 per $100 of assessed value. An alternative budget with the proposal included a 1-cent increase.

In March, City Council set an advertised real estate tax of $1.15 per $100 of assessed value, which is the highest rate that can be approved in this budget cycle. A lower rate may still be approved.

There are no changes proposed to the following tax rates: $5.33 per $100 of assessed value for tangible vehicle personal property, $4.75 for business personal property, $3.55 for vehicles with specially designed equipment for the physically disabled, $4.50 for machinery and tools in machinery and manufacturing business and certain vehicles for hire, and $0.01 for privately-owned boats and watercraft for recreational use.

City Council members who supported more discussion on a higher real estate tax rate noted funding needs such as affordable housing, school funding, commitments from collective bargaining agreements and DASH funding. Wednesday's meeting also includes a work session on add/delete proposals. Add/delete proposals being considered include increased funding for Alexandria City Public Schools, more funding for youth safety and resilience, one-time funding for affordable housing, one-time funding for staff bonuses, and more.

Final add/delete action will be on April 29, and final budget approval will be on May 1.

Wednesday's public hearing will start at 5:30 p.m. and will be available in person at City Hall and virtually on Zoom. Find out more information about viewing and giving testimony.