Max Tax Hike Of 2.5 Cents To Be Considered By Alexandria Council

ALEXANDRIA, VA — Alexandria City Council voted to consider a real estate tax rate up to $1.155 per $100 of assessed value, which would be a 2.5-cent increase over the current $1.13 rate. City Manager Mark Jinks had requested a $1.15 per $100 of assessed value rate in his proposed fiscal year 2021 budget, or a 2-cent increase. Changes to the tax rates on personal property (vehicles) or business tangible property won't be considered.

Council opted to set the potential range of the real estate tax between the current $1.13 per $100 of assessed value rate and $1.155 per $100 of assessed value. This means council could opt to keep the current tax rate or adopt a rate up to $1.155 per $100 of assessed value.

Jinks had proposed the 2.cent real estate tax increase, which would solely go toward school and city capital projects. The city manager also indicated he's considering future 2-cent increases to address long-term capital needs, although this can only be requested during the annual budget process.

SEE ALSO: Proposed Alexandria Budget Includes 2-Cent Real Estate Tax Hike

According to the city, the 2-cent increase would increase the average residential tax bill by $428, or 6.82 percent from the current year. The maximum real estate tax rate of $1.155 would cause the average residential tax bill to increase by $457, or 7.29 percent.

Even without a tax increase, property assessments will spur changes in property owners' tax bills. The city's 2020 assessments showed an average 4.15 percent increase of taxable property from 2019 to 2020, a significant change from the 2.71 percent increase from 2018 to 2019. For residential properties, the average assessment was $582,636, representing a 4.62 percent increase.

According to a city statement, "No decision has been made yet on what the adopted tax rates will be." A public hearing on the ordinance establishing the real estate tax rate is scheduled for Saturday, April 18 at 9:30 a.m. in the City Hall Council Chamber. City Council will vote on the final real estate tax rate with the adoption of the fiscal year 2021 budget on April 29.

For more information on the proposed budget and process, visit www.alexandriava.gov/Budget. To comment on the fiscal year 2021 budget, visit www.research.net/r/AlexandriaVA-FY2021BudgetInput.