Real Estate Tax Rate Lowered By Vienna Town Council To Address Assessment Increases

VIENNA, VA — Vienna's real estate tax rate will be lower in the next fiscal year after approval by Vienna Town Council Monday.

As a public hearing on the tax rate was held Monday, Vienna Town Council reduced the tax rate from 20.5 cents per $100 of assessed value to 19.5 cents per $100 of assessed value. That adopted rate is less than the rate proposed in the town manager's budget — 20.25 cents per $100 of assessed value.

The tax rate that would have offset assessment increases and charged the same tax as the last year would have been $19.22 cents per $100 of assessed value.

In a statement, Mayor Linda Colbert attributed the tax rate reduction to increasing property values.

"On average, Vienna real estate assessments increased by 10 percent, which would have resulted in a significant increase in property taxes if we left the tax rate where it was," Colbert said. "The Town Council wanted to reduce that burden on taxpayers and asked the finance staff to reevaluate the financial forecast."

Town of Vienna property owners pay the rate on top of Fairfax County's real estate tax rate. Fairfax County's budget proposal from County Executive Bryan Hill would keep the tax rate at $1.11 per $100 of assessed value. A higher rate was ruled out by the Board of Supervisors, which means the same rate or a lower rate may be approved. Even with a flat tax rate, tax bills would increase for property owners whose assessment values rose.

Vienna's full fiscal year 2024 budget will be adopted at the Town Council meeting at 8 p.m. on Monday, May 15. The $50.1 million budget proposal includes the town's four operating funds: general, water and sewer, debt service and stormwater. The proposal is a 2.9 percent increase over last year's approved budget of $48.7 million.

Colbert noted a greater tax reduction was possible after consulting with town staff.

"Thanks to conservative budgeting, no increase in health insurance rates for Town staff and an increase in other revenues reported later in the budget process, the finance staff determined that Vienna could further reduce the tax rate in the proposed budget and still operate at high standards," Colbert said.

Even with a real estate tax rate reduction, water and sewer rates are proposed to increase by 10 percent in the budget for infrastructure investments and cost increases. Quarterly residential service charges would increase from $32.80 to $35 per quarter, and the average annual bill would increase by $20.25 a quarter or $80 annually.

For more information about the budget, visit www.viennava.gov/budget.