Tax Rate Limit In 2025 Budget To Be Set By Alexandria City Council

ALEXANDRIA, VA — After the city manager proposed a budget with the same real estate tax rate in Alexandria, City Council will set advertised tax rates Tuesday.

Advertised tax rates refer to the highest rates that can be approved for this year's city budget. City Manager James Parajon's budget proposal would keep the real estate tax rate at $1.11 per $100 of assessed value. There is also an alternative budget with a 1-cent tax increase.

Under Virginia code, a tax rate public hearing is required when a tax rate would increase taxes by more than 1 percent after new construction is factored in. According to a city staff memo, the proposed tax rate would increase the overall tax base by 0.11 percent when not factoring in new construction growth.

With a flat tax rate, property owners with a higher assessment in 2024 would see tax bills increase. Mayor Justin Wilson shared on social media that 50 percent of single-family homes increased in value, 45 percent had no change and 5 percent decreased. For condos, 74 percent increased, 24 percent did not change and 5 percent decreased.

Tax ceilings will also be set on other taxes proposed to remain the same. This includes the vehicle personal property tax ($5.33 per $100 of assessed value), business personal property tax ($4.75 per $100 of assessed value), vehicles accommodating the physically disabled ($3.55 per $100 of assessed value), tools tax rate ($4.50 per $100 of assessed value) and private boats for recreational purposes (0.01 per $100 of assessed value).

The advertised tax rate decision comes after Monday's budget public hearing. A second public hearing is scheduled on March 16. A public hearing on the real estate and personal property tax rates will be held on April 24. The final add/delete decisions for the budget will be on April 29, and budget adoption is expected on May 1.

SEE ALSO: Same Real Estate Tax Rate Proposed In Alexandria 2025 Budget