Lower Real Estate Tax Rate, County Employee Pay Raises In Fairfax County Budget Mark-Up

FAIRFAX COUNTY, VA — The Board of Supervisors will vote Tuesday on a budget mark-up that provides a lower real estate tax rate but doesn't fully cancel out the impact of increased assessment values. Pay increases for county employees are also provided in the budget.

The budget mark-up is the last step before the board gives final approval to the budget on May 9. The budget typically remains unchanged between the budget mark-up and final approval.

In a newsletter, Board of Supervisors Chairman Jeff McKay noted the key priorities in the budget are "investing in our workforce, providing car tax relief, reducing the real estate tax rate, and investing in our community’s priorities, particularly our highest priority the Fairfax County Public Schools."

Tax Relief and Impacts Of Higher Assessments

The budget mark-up up for board consideration Tuesday has a lower real estate tax rate. While the county executive's budget proposal recommended keeping the rate flat at $1.11 per assessed value, the Board of Supervisors is recommending a rate of $1.095 per $100 of assessed value. According to board documents, the $1.095 tax rate would make the average property owners' tax bill go up by $412 due to the impact of assessment values. Without changing the tax rate from $1.11, the average tax bill would have gone up $520.

The impact of the real estate tax rate on tax bills didn't go unnoticed by Fairfax County Taxpayers Alliance president Arthur Purves, who typically testifies to the board on the budget. Purves noted a rate of $1.05 per $100 of assessed value would have offset average assessment increases for residential and commercial properties.

"A good rule of thumb for homeowners is that when the supervisors say that they are reducing the tax rate, expect a big tax increase," Purves said in testimony. "This is because the supervisors only reduce the tax rate when there is an assessment increase, and the rate is never reduced enough to offset the increase."

McKay said the budget provides $100 million in tax relief, including an estimated $64 million revenue reduction through a lower car tax assessment ratio, $47 million revenue reduction through the 1.5-cent real estate tax rate reduction and $2.7 million through tax relief for seniors and people with disabilities.

"Our Board recognizes that our residents are feeling the stress of the rising cost of living brought on by a host of issues including nationwide inflation," McKay shared in his newsletter. "I am committed to continuing to find ways to lower the tax burden on our homeowners through tax relief, and especially through the diversification of revenue, and still deliver high quality core services."

The county's personal property tax rate on vehicles remains $4.57 per $100 of assessed value. However, the budget would apply a 90 percent assessment ratio on vehicles rather than 100 percent of a car's assessed value for this tax year's personal property tax bills. Last year, an 85 percent assessment ratio was approved to address the rise in car values as supply chain shortages affected used car demand. The county anticipates the average car tax bill will be similar or slightly below the last year's bills.

More tax relief is available to seniors and people with disabilities who meet income requirements.

Increasing Employee Pay

Another key item in the budget mark-up is providing pay increases for all county employees. In the budget markup, non-uniformed county employees would receive a pay increase of at least 5.44 percent or up to 9.44 percent as well as longevity and performance increases and benefits investments. Those on the lowest end of the pay scale are expected to get the highest pay increases.

SEIU Virginia 512, a union representing thousands of Fairfax County employees, expressed support for the market rate adjustments to pay being fully funded. Members wrote hundreds of letters to the board and testified at budget town halls and public hearings.

"The Fairfax Board of Supervisors answering our call to fully fund the [market rate adjustment] at 5.44 percent is a victory for all County employees, especially those who struggle to get by despite providing valuable services every day," said Tammie Wondong, a county employee and SEIU Virginia 512's Fairfax County president. "When the skeptics said winning fair pay in the budget was impossible we took that as a challenge. We know our worth and are no longer content to settle for the leftovers."

Higher pay increases are also on the horizon for Fairfax County police officers, where staff recruitment and retention have been a challenge. For Fairfax County Police Department officers, average pay would increase between 10.44 percent and 15.44 percent, and a small number will get increases over 20 percent. The police department's starting salary will increase $56,000 to $65,000.

McKay noted the impact of increasing police pay, including an average 9.3 percent average increase in last year's budget.

"Our investments in our Police Department, including hiring bonuses and previous pay increases, are already paying off – the current Academy class is the largest in 10 years," McKay wrote. "These measures will play a big role in keeping Fairfax County the safest jurisdiction of our size in the country."

For employees of the Fairfax County Fire and Rescue Department, Sheriff’s Office and Department of Public Safety Communications, pay increases will range from 5.44 percent to 10.44 percent.

A few other notable items in the budget include fully funding the Fairfax County Public Schools' operating budget request, affordable housing investments, and funding for the Fairfax-Falls Church Community Services Board to treat mental health issues, developmental disabilities and substance use disorders.

See the full budget mark-up or more information on the county's budget web page.